Engine Capital Management LP Buys Shares of 5,165,862 DNOW Inc. $DNOW

Engine Capital Management LP purchased a new position in DNOW Inc. (NYSE:DNOW) in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 5,165,862 shares of the oil and gas company’s stock, valued at approximately $61,525,000. DNOW comprises about 7.4% of Engine Capital Management LP’s holdings, making the stock its 4th largest holding.

Other large investors also recently made changes to their positions in the company. Royal Bank of Canada raised its stake in shares of DNOW by 28.2% in the 1st quarter. Royal Bank of Canada now owns 35,783 shares of the oil and gas company’s stock valued at $611,000 after acquiring an additional 7,867 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in DNOW by 53.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 358,708 shares of the oil and gas company’s stock valued at $6,127,000 after purchasing an additional 124,797 shares during the last quarter. Norges Bank acquired a new position in DNOW during the second quarter valued at approximately $1,192,000. Quantbot Technologies LP bought a new position in shares of DNOW in the second quarter valued at approximately $283,000. Finally, Invesco Ltd. lifted its stake in shares of DNOW by 31.1% in the second quarter. Invesco Ltd. now owns 792,481 shares of the oil and gas company’s stock worth $11,752,000 after buying an additional 187,878 shares during the last quarter. Institutional investors own 97.63% of the company’s stock.

DNOW Trading Down 1.6%

Shares of DNOW stock opened at $14.18 on Tuesday. The firm has a market capitalization of $2.59 billion, a P/E ratio of -19.42 and a beta of 0.83. DNOW Inc. has a 1 year low of $10.94 and a 1 year high of $17.26. The firm’s fifty day simple moving average is $13.38 and its 200 day simple moving average is $13.29. The company has a current ratio of 2.42, a quick ratio of 1.14 and a debt-to-equity ratio of 0.27.

DNOW (NYSE:DNOW) last issued its quarterly earnings results on Thursday, May 7th. The oil and gas company reported $0.01 earnings per share for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.04). The company had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.08 billion. DNOW had a negative net margin of 4.14% and a positive return on equity of 4.94%. DNOW’s revenue for the quarter was up 97.5% on a year-over-year basis. During the same period last year, the company earned $0.22 earnings per share. As a group, sell-side analysts predict that DNOW Inc. will post 0.31 EPS for the current year.

Analysts Set New Price Targets

A number of research firms recently issued reports on DNOW. Zacks Research upgraded shares of DNOW from a “strong sell” rating to a “hold” rating in a research note on Friday, May 22nd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of DNOW in a research report on Wednesday, May 27th. Wall Street Zen cut DNOW from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Freedom Capital upgraded DNOW to a “strong-buy” rating in a research note on Monday, June 22nd. Finally, DA Davidson assumed coverage on DNOW in a report on Tuesday, June 16th. They issued a “buy” rating and a $17.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, DNOW currently has an average rating of “Moderate Buy” and a consensus target price of $17.00.

About DNOW

DistributionNOW (NYSE: DNOW) is a global distributor of energy and industrial products, serving a broad range of end-markets including oil and gas, petrochemical, power generation, and industrial manufacturing. Headquartered in Houston, Texas, the company provides solutions across the life cycle of energy and industrial assets, with an emphasis on safety, reliability and operational efficiency.

The company’s core product portfolio includes piping systems and related components (such as valves, fittings, flanges and gaskets), instrumentation, electrical and automation equipment, fasteners, industrial safety supplies, chemicals and composite products.