DNOW (NYSE:DNOW) Reaches New 52-Week High After Strong Earnings

DNOW Inc. (NYSE:DNOW) hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $15.80 and last traded at $16.96, with a volume of 6071 shares trading hands. The stock had previously closed at $14.14.

The oil and gas company reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.14. DNOW had a net margin of 8.70% and a return on equity of 8.90%.

DNOW announced that its board has initiated a share buyback plan on Friday, January 24th that allows the company to repurchase $160.00 million in shares. This repurchase authorization allows the oil and gas company to buy up to 10% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Activity

In other news, Director Paul M. Coppinger sold 26,186 shares of the stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $15.35, for a total value of $401,955.10. Following the completion of the sale, the director now directly owns 56,568 shares of the company’s stock, valued at $868,318.80. This represents a 31.64 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Eagle Asset Management Inc. grew its holdings in shares of DNOW by 15.5% during the 3rd quarter. Eagle Asset Management Inc. now owns 277,298 shares of the oil and gas company’s stock valued at $3,951,000 after acquiring an additional 37,178 shares in the last quarter. Global Alpha Capital Management Ltd. boosted its position in DNOW by 1.9% during the third quarter. Global Alpha Capital Management Ltd. now owns 2,622,426 shares of the oil and gas company’s stock valued at $33,908,000 after purchasing an additional 48,900 shares during the last quarter. JPMorgan Chase & Co. grew its stake in DNOW by 3.3% in the third quarter. JPMorgan Chase & Co. now owns 1,731,485 shares of the oil and gas company’s stock valued at $22,388,000 after purchasing an additional 54,660 shares in the last quarter. Royce & Associates LP increased its position in DNOW by 10.2% in the 3rd quarter. Royce & Associates LP now owns 612,638 shares of the oil and gas company’s stock worth $7,921,000 after purchasing an additional 56,787 shares during the last quarter. Finally, Versor Investments LP purchased a new stake in shares of DNOW during the 3rd quarter worth about $463,000. Institutional investors and hedge funds own 97.63% of the company’s stock.

DNOW Stock Performance

The company has a market capitalization of $1.80 billion, a PE ratio of 9.07 and a beta of 1.53. The stock has a 50 day moving average price of $13.88 and a two-hundred day moving average price of $13.41.

About DNOW

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.