Stephens Reiterates "Overweight" Rating for Distribution Solutions Group (NASDAQ:DSGR)

Key Points

• Stephens reiterated an "Overweight" rating on Distribution Solutions Group with a $36 price target, implying roughly a 29.4% upside from the prior close.
• Analyst coverage is mixed (two Buys, two Sells, consensus "Hold" with an average target of $35.50); DSGR reported an EPS miss of $0.24 vs. $0.26 estimates while revenue of $496M topped expectations and the stock trades at a high P/E (~231.8) with a market cap around $1.29B.
• Director Robert Zamarripa purchased 14,000 shares at about $21.23, and the company shows very high reported insider and institutional ownership (insiders ~78.8%; institutional/hedge funds ~91.6%).

Distribution Solutions Group (NASDAQ:DSGR - Get Free Report)'s stock had its "overweight" rating restated by Stephens in a note issued to investors on Tuesday,Benzinga reports. They presently have a $36.00 price target on the stock. Stephens' price objective indicates a potential upside of 29.40% from the company's previous close.

DSGR has been the topic of several other research reports. Zacks Research cut shares of Distribution Solutions Group from a "hold" rating to a "strong sell" rating in a research report on Friday, March 13th. Barrington Research restated an "outperform" rating and issued a $35.00 price objective on shares of Distribution Solutions Group in a report on Monday, March 16th. Two analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $35.50.

Distribution Solutions Group Trading Up 2.2%

Shares of DSGR stock traded up $0.61 on Tuesday, hitting $27.82. 6,789 shares of the stock traded hands, compared to its average volume of 128,657. The firm's 50-day moving average price is $26.48 and its two-hundred day moving average price is $27.88. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.39 and a current ratio of 2.63. The stock has a market capitalization of $1.29 billion, a PE ratio of 231.83 and a beta of 0.56. Distribution Solutions Group has a twelve month low of $19.02 and a twelve month high of $33.80.

Distribution Solutions Group (NASDAQ:DSGR - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.02). The firm had revenue of $496.00 million for the quarter, compared to analyst estimates of $489.30 million. Distribution Solutions Group had a net margin of 0.27% and a return on equity of 8.49%. As a group, analysts anticipate that Distribution Solutions Group will post 1.46 EPS for the current year.

Insider Transactions at Distribution Solutions Group

In related news, Director Robert Zamarripa acquired 14,000 shares of Distribution Solutions Group stock in a transaction that occurred on Tuesday, March 10th. The shares were purchased at an average cost of $21.23 per share, for a total transaction of $297,220.00. Following the acquisition, the director owned 47,105 shares in the company, valued at approximately $1,000,039.15. This represents a 42.29% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 78.80% of the company's stock.

Institutional Trading of Distribution Solutions Group

Several institutional investors and hedge funds have recently bought and sold shares of DSGR. Nantahala Capital Management LLC purchased a new stake in Distribution Solutions Group in the 2nd quarter valued at about $5,791,000. Agman Capital LLC purchased a new stake in Distribution Solutions Group during the fourth quarter worth about $4,954,000. Blair William & Co. IL purchased a new stake in Distribution Solutions Group during the fourth quarter worth about $3,092,000. Teton Advisors LLC purchased a new stake in Distribution Solutions Group during the third quarter worth about $3,188,000. Finally, Highlander Partners L.P. purchased a new stake in Distribution Solutions Group during the fourth quarter worth about $2,353,000. 91.64% of the stock is currently owned by hedge funds and other institutional investors.

Distribution Solutions Group Company Profile

Distribution Solutions Group, Inc, a specialty distribution company, engages in the provision of value-added distribution solutions in North America, Europe, Asia, South America, and the Middle East. The company provides its solutions to the maintenance, repair, and operations (MRO); original equipment manufacturer (OEM); and industrial technology markets. It operates through three segments: Lawson, Gexpro Services, and TestEquity. The Lawson segment distributes of specialty products and services to the industrial, commercial, institutional, and government MRO market.

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