DNOW (NYSE:DNOW) Stock Breaks Below 50-Day Moving Average - Should You Sell?

Key Points

• DNOW shares dipped below their 50-day moving average of $15.62, trading as low as $15.21 before last changing hands at $15.7330.
• Analyst sentiment remains generally positive: DNOW has a “Moderate Buy” consensus rating and an average price target of $18.20, despite ratings ranging from Sell to Strong Buy.
• The company exceeded quarterly expectations, reporting $0.12 in earnings per share versus a $0.09 estimate and $1.31 billion in revenue. Institutional investors own approximately 97.63% of the stock.

DNOW Inc. (NYSE:DNOW - Get Free Report)'s stock price crossed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $15.62 and traded as low as $15.21. DNOW shares last traded at $15.7330, with a volume of 1,885,652 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on DNOW shares. Wall Street Zen upgraded shares of DNOW from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Susquehanna upped their price target on shares of DNOW from $16.00 to $19.00 and gave the stock a "positive" rating in a research report on Friday, August 7th. Weiss Ratings reissued a "sell (d+)" rating on shares of DNOW in a research note on Monday, August 24th. DA Davidson raised their price objective on shares of DNOW from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Finally, Freedom Capital upgraded shares of DNOW to a "strong-buy" rating in a research note on Monday, June 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $18.20.

DNOW Trading Up 3.0%

The stock has a fifty day moving average of $15.62 and a 200-day moving average of $13.85. The company has a market cap of $2.84 billion, a PE ratio of -14.70 and a beta of 0.89. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.06 and a current ratio of 2.14.

DNOW (NYSE:DNOW - Get Free Report) last released its earnings results on Thursday, August 6th. The oil and gas company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.03. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.27 billion. DNOW had a positive return on equity of 3.91% and a negative net margin of 4.58%.The business's revenue for the quarter was up 108.1% compared to the same quarter last year. During the same period last year, the company earned $0.27 earnings per share. Sell-side analysts anticipate that DNOW Inc. will post 0.34 EPS for the current fiscal year.

Hedge Funds Weigh In On DNOW

A number of institutional investors have recently modified their holdings of DNOW. Beacon Pointe Advisors LLC purchased a new position in DNOW during the 2nd quarter worth $462,000. Bank of America Corp DE bought a new position in shares of DNOW during the 2nd quarter worth $25,358,000. Jefferies Financial Group Inc. purchased a new position in shares of DNOW during the second quarter valued at $2,270,000. Engine Capital Management LP purchased a new position in shares of DNOW during the first quarter valued at $61,525,000. Finally, GSA Capital Partners LLP bought a new stake in shares of DNOW in the second quarter valued at about $2,102,000. 97.63% of the stock is owned by hedge funds and other institutional investors.

DNOW Company Profile

DNOW Inc NYSE: DNOW is a distributor and supply chain solutions provider serving the energy and industrial markets. The company supplies products and services used in oil and natural gas exploration, production, midstream infrastructure, refining, petrochemical processing, and industrial applications.

Its offerings include pipes, valves, fittings, flanges, gaskets, fasteners, instrumentation, electrical products, production equipment, artificial lift products, and other maintenance, repair, and operating supplies.

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