Zacks Investment Research Lowers NOW (DNOW) to Hold

Zacks Investment Research cut shares of NOW (NYSE:DNOW) from a buy rating to a hold rating in a report released on Wednesday morning.

According to Zacks, “NOW Inc. is a distributor to the energy and industrial sectors. It stocks and sells a comprehensive offering of products for the upstream, midstream, and downstream & industrial market segments. The Company offers stock keeping units, including pipe, valves and valve automation, fittings, instrumentation, mill and industrial supplies, tools, safety supplies, electrical products, drilling and production equipment, fabricated equipment, and industrial paints and coatings. NOW also provides supply chain management solutions to energy and industrial manufacturing companies around the world. It operates primarily under the DistributionNOW and Wilson Export brands. NOW Inc. is headquartered in Houston, Texas. “

DNOW has been the subject of several other reports. ValuEngine lowered shares of NOW from a hold rating to a sell rating in a report on Thursday, December 20th. Stifel Nicolaus lowered shares of NOW from a buy rating to a hold rating and cut their target price for the company from $17.00 to $13.00 in a report on Wednesday, December 19th. Robert W. Baird cut their target price on shares of NOW from $17.00 to $16.00 and set a neutral rating for the company in a report on Friday, November 2nd. Finally, Cowen began coverage on shares of NOW in a report on Saturday, October 13th. They set a hold rating and a $17.00 target price for the company. Nine investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company. NOW has an average rating of Hold and an average price target of $14.22.

NYSE DNOW traded up $0.08 on Wednesday, hitting $13.35. 604,982 shares of the company’s stock traded hands, compared to its average volume of 1,069,598. The company has a current ratio of 2.72, a quick ratio of 1.44 and a debt-to-equity ratio of 0.14. NOW has a 1-year low of $9.12 and a 1-year high of $18.56. The stock has a market cap of $1.44 billion, a price-to-earnings ratio of -49.44 and a beta of 1.29.

NOW (NYSE:DNOW) last announced its quarterly earnings data on Thursday, November 1st. The oil and gas company reported $0.15 EPS for the quarter, beating the consensus estimate of $0.11 by $0.04. The business had revenue of $822.00 million during the quarter, compared to analysts’ expectations of $805.80 million. NOW had a net margin of 1.09% and a return on equity of 2.43%. The business’s quarterly revenue was up 17.9% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.03) EPS. Analysts forecast that NOW will post 0.33 EPS for the current year.

A number of hedge funds and other institutional investors have recently modified their holdings of DNOW. BlackRock Inc. increased its holdings in NOW by 3.8% in the 2nd quarter. BlackRock Inc. now owns 11,741,100 shares of the oil and gas company’s stock worth $156,509,000 after acquiring an additional 425,281 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in NOW by 20.3% in the 2nd quarter. Dimensional Fund Advisors LP now owns 6,636,170 shares of the oil and gas company’s stock worth $88,460,000 after acquiring an additional 1,122,053 shares in the last quarter. Federated Investors Inc. PA grew its holdings in shares of NOW by 77.9% during the second quarter. Federated Investors Inc. PA now owns 17,057 shares of the oil and gas company’s stock worth $227,000 after buying an additional 7,468 shares in the last quarter. NumerixS Investment Technologies Inc purchased a new stake in shares of NOW during the second quarter worth $120,000. Finally, Renaissance Technologies LLC grew its holdings in shares of NOW by 487.7% during the second quarter. Renaissance Technologies LLC now owns 411,400 shares of the oil and gas company’s stock worth $5,484,000 after buying an additional 341,400 shares in the last quarter.

About NOW

NOW Inc distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, measurement and control equipment, process equipment, pumps, OEM parts, coatings, mill supplies, and safety supplies, as well as provides application systems, work processes, parts integration, optimization solutions, and after-sales support services.

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