DNOW (NYSE:DNOW) Shares Gap Up – Here’s Why

DNOW Inc. (NYSE:DNOW) shares gapped up before the market opened on Friday . The stock had previously closed at $13.80, but opened at $14.47. DNOW shares last traded at $14.58, with a volume of 166,700 shares trading hands.

DNOW Price Performance

The stock’s fifty day moving average price is $13.95 and its 200 day moving average price is $13.37. The stock has a market capitalization of $1.60 billion, a P/E ratio of 8.07 and a beta of 1.53.

DNOW (NYSE:DNOW) last released its quarterly earnings results on Thursday, November 7th. The oil and gas company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.19 by $0.02. The business had revenue of $606.00 million during the quarter, compared to analyst estimates of $614.92 million. DNOW had a net margin of 8.70% and a return on equity of 8.90%. The company’s quarterly revenue was up 3.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.25 earnings per share. On average, sell-side analysts expect that DNOW Inc. will post 0.81 earnings per share for the current year.

DNOW announced that its Board of Directors has approved a share repurchase program on Friday, January 24th that authorizes the company to repurchase $160.00 million in outstanding shares. This repurchase authorization authorizes the oil and gas company to buy up to 10% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Paul M. Coppinger sold 26,186 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $15.35, for a total transaction of $401,955.10. Following the completion of the transaction, the director now owns 56,568 shares in the company, valued at $868,318.80. This represents a 31.64 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DNOW

A number of institutional investors have recently added to or reduced their stakes in DNOW. KBC Group NV increased its position in shares of DNOW by 45.5% during the third quarter. KBC Group NV now owns 3,806 shares of the oil and gas company’s stock valued at $49,000 after acquiring an additional 1,190 shares during the last quarter. Quarry LP lifted its position in DNOW by 75.6% during the 2nd quarter. Quarry LP now owns 4,433 shares of the oil and gas company’s stock worth $61,000 after acquiring an additional 1,908 shares during the period. nVerses Capital LLC purchased a new position in DNOW during the third quarter worth about $78,000. Canada Pension Plan Investment Board purchased a new stake in shares of DNOW in the second quarter valued at approximately $95,000. Finally, MBB Public Markets I LLC acquired a new stake in shares of DNOW in the second quarter valued at about $138,000. Hedge funds and other institutional investors own 97.63% of the company’s stock.

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.