Distribution Solutions Group (NASDAQ:DSGR) Hits New 52-Week High – Still a Buy?

Distribution Solutions Group, Inc. (NASDAQ:DSGR) reached a new 52-week high on Thursday . The stock traded as high as $34.37 and last traded at $34.6680, with a volume of 55463 shares trading hands. The stock had previously closed at $27.48.

Key Distribution Solutions Group News

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

Analyst Ratings Changes

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

Distribution Solutions Group Stock Performance

The company has a current ratio of 2.63, a quick ratio of 1.39 and a debt-to-equity ratio of 1.07. The firm has a market capitalization of $1.59 billion, a price-to-earnings ratio of 287.50 and a beta of 0.56. The stock has a fifty day moving average price of $27.65 and a 200-day moving average price of $27.75.

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

Institutional Investors Weigh In On Distribution Solutions Group

A number of hedge funds have recently made changes to their positions in the company. Jane Street Group LLC grew its stake in Distribution Solutions Group by 214.2% during the first quarter. Jane Street Group LLC now owns 23,586 shares of the company’s stock worth $660,000 after buying an additional 16,080 shares during the last quarter. Nantahala Capital Management LLC acquired a new position in shares of Distribution Solutions Group in the 2nd quarter worth approximately $5,791,000. BNP Paribas Financial Markets boosted its holdings in shares of Distribution Solutions Group by 53.5% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,170 shares of the company’s stock worth $32,000 after acquiring an additional 408 shares in the last quarter. Monimus Capital Management LP grew its position in Distribution Solutions Group by 13.0% during the 2nd quarter. Monimus Capital Management LP now owns 101,009 shares of the company’s stock worth $2,775,000 after acquiring an additional 11,590 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in Distribution Solutions Group by 62.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 15,080 shares of the company’s stock valued at $454,000 after purchasing an additional 5,779 shares in the last quarter. Institutional investors and hedge funds own 91.64% of the company’s stock.

About Distribution Solutions Group

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.