DNOW (NYSE:DNOW) Shares Gap Up – Should You Buy?

Shares of DNOW Inc. (NYSE:DNOW) gapped up prior to trading 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 Stock Performance

The company has a market capitalization of $1.60 billion, a PE ratio of 8.07 and a beta of 1.53. The stock’s fifty day simple moving average is $13.95 and its 200-day simple moving average is $13.37.

DNOW (NYSE:DNOW) last issued its earnings results on Thursday, November 7th. The oil and gas company reported $0.21 earnings per share for the quarter, beating analysts’ consensus estimates of $0.19 by $0.02. DNOW had a return on equity of 8.90% and a net margin of 8.70%. The firm had revenue of $606.00 million for the quarter, compared to analysts’ expectations of $614.92 million. During the same quarter last year, the firm earned $0.25 earnings per share. The firm’s revenue for the quarter was up 3.1% compared to the same quarter last year. On average, equities analysts anticipate that DNOW Inc. will post 0.81 EPS for the current year.

DNOW declared that its board has approved a stock buyback program on Friday, January 24th that allows the company to repurchase $160.00 million in outstanding shares. This repurchase authorization allows the oil and gas company to reacquire up to 10% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Insider Activity at DNOW

In related news, Director Paul M. Coppinger sold 26,186 shares of the firm’s stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $15.35, for a total transaction of $401,955.10. Following the transaction, the director now directly owns 56,568 shares in the company, valued at $868,318.80. This trade represents a 31.64 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DNOW

A number of institutional investors have recently modified their holdings of the business. KBC Group NV boosted its holdings 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 period. Quarry LP raised its position in DNOW by 75.6% in the second 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 in the last quarter. nVerses Capital LLC acquired a new position in shares of DNOW in the 3rd quarter worth $78,000. Canada Pension Plan Investment Board acquired a new stake in DNOW during the 2nd quarter valued at $95,000. Finally, MBB Public Markets I LLC acquired a new position in shares of DNOW in the 2nd quarter valued at about $138,000. 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.