Distribution Solutions Group (NASDAQ:DSGR) Lowered to Hold Rating by Barrington Research

Barrington Research downgraded shares of Distribution Solutions Group (NASDAQ:DSGR) from a strong-buy rating to a hold rating in a report released on Friday morning,Zacks.com reports.

Several other equities research analysts have also weighed in on DSGR. Zacks Research lowered Distribution Solutions Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, June 11th. Weiss Ratings downgraded Distribution Solutions Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, July 10th. Finally, Stephens set a $35.00 target price on Distribution Solutions Group in a report on Thursday. Two equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Distribution Solutions Group has a consensus rating of “Reduce” and a consensus price target of $35.00.

Distribution Solutions Group Stock Up 0.2%

NASDAQ DSGR opened at $34.50 on Friday. Distribution Solutions Group has a 12 month low of $19.02 and a 12 month high of $34.83. The company has a market capitalization of $1.59 billion, a P/E ratio of 287.50 and a beta of 0.56. The company’s 50 day simple moving average is $27.65 and its 200 day simple moving average is $27.75. The company has a debt-to-equity ratio of 1.07, a current ratio of 2.63 and a quick ratio of 1.39.

Distribution Solutions Group (NASDAQ:DSGR) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.02). The business had revenue of $496.00 million during the quarter, compared to analyst estimates of $489.30 million. Distribution Solutions Group had a return on equity of 8.49% and a net margin of 0.27%. Equities research analysts expect that Distribution Solutions Group will post 1.31 earnings per share for the current fiscal year.

Institutional Trading of Distribution Solutions Group

A number of hedge funds have recently modified their holdings of the business. Groupe la Francaise purchased a new stake in shares of Distribution Solutions Group in the first quarter valued at $1,222,000. Bank of America Corp DE grew its holdings in shares of Distribution Solutions Group by 22.6% during the first quarter. Bank of America Corp DE now owns 14,507 shares of the company’s stock valued at $381,000 after buying an additional 2,673 shares in the last quarter. Quantinno Capital Management LP acquired a new position in Distribution Solutions Group during the first quarter valued at $361,000. Rangeley Capital LLC acquired a new position in Distribution Solutions Group during the first quarter valued at $442,000. Finally, OMERS ADMINISTRATION Corp purchased a new stake in Distribution Solutions Group in the 1st quarter worth about $354,000. Hedge funds and other institutional investors own 91.64% of the company’s stock.

Trending Headlines about Distribution Solutions Group

Here are the key news stories impacting Distribution Solutions Group this week:

• Positive Sentiment: DSGR agreed to be acquired by affiliates of LKCM Headwater Investments for $35.00 per share in cash, giving investors a clear exit price and effectively putting a floor under the stock. Distribution Solutions Group to Be Taken Private by Affiliates of LKCM Headwater Investments for $35.00 Per Common Share in Cash
• Positive Sentiment: The merger announcement likely explains the stock’s strength, as shares are trading close to the deal value and volume has picked up on the news.
• Neutral Sentiment: TestEquity, a DSGR business, announced expanded environmental chamber sales representation across the Midwest, which is modestly supportive but not likely a major stock driver by itself. TestEquity Expands Environmental Chamber Sales Reach with Millennium Alliance Representation Across the Midwest
• Negative Sentiment: Stephens downgraded DSGR from strong-buy to hold, signaling less upside from an analyst perspective now that the acquisition price is largely known. Zacks.com report on Stephens downgrade
• Negative Sentiment: Multiple law firms, including Kaskela Law, Halper Sadeh, and Ademi LLP, launched investigations into whether the $35.00 per share buyout price is fair to shareholders, raising the risk of litigation and potential deal scrutiny. Kaskela Law Firm shareholder investigation

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.