DNOW (NYSE:DNOW) Hits New 52-Week High on Earnings Beat

DNOW Inc. (NYSE:DNOW) reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $15.80 and last traded at $16.96, with a volume of 6071 shares trading hands. The stock had previously closed at $14.14.

The oil and gas company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.14. DNOW had a net margin of 8.70% and a return on equity of 8.90%.

DNOW announced that its Board of Directors has approved a stock repurchase plan on Friday, January 24th that authorizes the company to buyback $160.00 million in shares. This buyback authorization authorizes the oil and gas company to repurchase up to 10% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Analyst Ratings Changes

Separately, Stifel Nicolaus lifted their price target on DNOW from $17.00 to $20.00 and gave the stock a “buy” rating in a research note on Friday.

Insider Buying and Selling at DNOW

In other DNOW news, Director Paul M. Coppinger sold 26,186 shares of the firm’s stock in a transaction on Wednesday, November 27th. The shares were sold at an average price of $15.35, for a total value of $401,955.10. Following the sale, the director now directly owns 56,568 shares in the company, valued at $868,318.80. This trade represents a 31.64 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Corporate insiders own 2.60% of the company’s stock.

Institutional Trading of DNOW

Several institutional investors have recently bought and sold shares of the stock. Smartleaf Asset Management LLC lifted its holdings in shares of DNOW by 78.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,010 shares of the oil and gas company’s stock valued at $26,000 after acquiring an additional 885 shares during the period. KBC Group NV increased its position in shares of DNOW by 45.5% during the 3rd quarter. KBC Group NV now owns 3,806 shares of the oil and gas company’s stock worth $49,000 after purchasing an additional 1,190 shares in the last quarter. Quarry LP lifted its holdings in DNOW by 69.2% during the 4th quarter. Quarry LP now owns 5,578 shares of the oil and gas company’s stock valued at $73,000 after purchasing an additional 2,281 shares during the last quarter. nVerses Capital LLC acquired a new position in DNOW in the third quarter valued at about $78,000. Finally, GW Henssler & Associates Ltd. bought a new stake in DNOW during the third quarter worth about $182,000. Institutional investors and hedge funds own 97.63% of the company’s stock.

DNOW Price Performance

The company’s 50 day simple moving average is $13.97 and its two-hundred day simple moving average is $13.45. The stock has a market capitalization of $1.82 billion, a P/E ratio of 9.18 and a beta of 1.53.

DNOW Company Profile

DNOW Inc distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items.