DXP Enterprises (NASDAQ:DXPE) Shares Gap Down Following Weak Earnings

Key Points

• DXP Enterprises missed quarterly earnings expectations, reporting EPS of $1.64 versus the $1.79 consensus estimate. Shares opened at $140.52, down from the prior close of $158.38.
• Analyst sentiment remains moderately positive: MarketBeat reports a consensus “Moderate Buy” rating and a $187 average price target, despite recent rating downgrades from two research firms.
• Institutional investors and hedge funds own 74.82% of the company’s stock; several reported increasing their positions in recent quarters.

Shares of DXP Enterprises, Inc. (NASDAQ:DXPE - Get Free Report) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $158.38, but opened at $140.52. DXP Enterprises shares last traded at $140.3460, with a volume of 21,392 shares traded.

The industrial products company reported $1.64 EPS for the quarter, missing the consensus estimate of $1.79 by ($0.15). DXP Enterprises had a return on equity of 18.51% and a net margin of 4.35%.

Analyst Upgrades and Downgrades

DXPE has been the subject of several recent research reports. Stephens lifted their target price on shares of DXP Enterprises from $160.00 to $220.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Weiss Ratings cut shares of DXP Enterprises from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, October 26th. Finally, Wall Street Zen downgraded shares of DXP Enterprises from a "strong-buy" rating to a "buy" rating in a research report on Saturday, October 31st. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $187.00.

Institutional Investors Weigh In On DXP Enterprises

A number of institutional investors have recently added to or reduced their stakes in DXPE. GAMMA Investing LLC boosted its holdings in DXP Enterprises by 6.3% in the 3rd quarter. GAMMA Investing LLC now owns 977 shares of the industrial products company's stock worth $177,000 after buying an additional 58 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its stake in shares of DXP Enterprises by 3.5% in the third quarter. Oregon Public Employees Retirement Fund now owns 2,921 shares of the industrial products company's stock worth $529,000 after acquiring an additional 100 shares during the last quarter. Nisa Investment Advisors LLC increased its position in shares of DXP Enterprises by 99.4% during the third quarter. Nisa Investment Advisors LLC now owns 351 shares of the industrial products company's stock worth $64,000 after purchasing an additional 175 shares in the last quarter. WINTON GROUP Ltd raised its stake in DXP Enterprises by 2.9% in the 2nd quarter. WINTON GROUP Ltd now owns 6,786 shares of the industrial products company's stock valued at $1,145,000 after purchasing an additional 190 shares during the last quarter. Finally, Public Employees Retirement System of Ohio acquired a new position in DXP Enterprises in the 2nd quarter valued at $33,000. Institutional investors and hedge funds own 74.82% of the company's stock.

DXP Enterprises Stock Down 7.3%

The business has a fifty day simple moving average of $181.14 and a two-hundred day simple moving average of $161.84. The company has a current ratio of 2.99, a quick ratio of 2.58 and a debt-to-equity ratio of 1.51. The company has a market cap of $2.28 billion, a PE ratio of 25.91 and a beta of 1.03.

About DXP Enterprises

DXP Enterprises, Inc is an industrial distribution and services company headquartered in Houston, Texas. The company supplies maintenance, repair and operating products used by industrial, commercial and government customers, with an emphasis on rotating equipment, fluid handling and related industrial applications.

Its product offerings include pumps, valves, bearings, power-transmission components, hose and rubber products, industrial supplies, safety equipment and other maintenance products.

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