DNOW (NYSE:DNOW) Hits New 12-Month High Following Strong Earnings

Shares of DNOW Inc. (NYSE:DNOW - Get Free Report) reached a new 52-week high on Thursday following a better than expected earnings announcement. The stock 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 EPS for the quarter, topping 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 declared that its board has authorized a stock buyback program on Friday, January 24th that authorizes the company to buyback $160.00 million in outstanding shares. This buyback authorization authorizes the oil and gas company to reacquire up to 10% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

Separately, Stifel Nicolaus increased their price objective on DNOW from $17.00 to $20.00 and gave the company a "buy" rating in a report on Friday.

Insider Activity

In related news, Director Paul M. Coppinger sold 26,186 shares of the stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $15.35, for a total value of $401,955.10. Following the sale, the director now owns 56,568 shares in the company, valued at approximately $868,318.80. This represents a 31.64 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.60% of the stock is owned by insiders.

Hedge Funds Weigh In On DNOW

Several large investors have recently modified their holdings of DNOW. Smartleaf Asset Management LLC boosted its holdings in shares of DNOW by 78.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,010 shares of the oil and gas company's stock worth $26,000 after acquiring an additional 885 shares during the period. KBC Group NV increased 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 worth $49,000 after purchasing an additional 1,190 shares during the period. Quarry LP raised its position in shares of DNOW by 69.2% in the fourth quarter. Quarry LP now owns 5,578 shares of the oil and gas company's stock valued at $73,000 after buying an additional 2,281 shares in the last quarter. nVerses Capital LLC bought a new stake in shares of DNOW in the third quarter valued at approximately $78,000. Finally, GW Henssler & Associates Ltd. acquired a new stake in DNOW during the third quarter worth approximately $182,000. 97.63% of the stock is owned by institutional investors.

DNOW Price Performance

The firm has a market cap of $1.82 billion, a price-to-earnings ratio of 9.18 and a beta of 1.53. The stock has a 50-day moving average of $13.97 and a 200-day moving average of $13.42.

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.