DNOW (NYSE:DNOW) Shares Gap Up - Here's Why

DNOW Inc. (NYSE:DNOW - Get Free Report)'s stock price gapped up before the market opened 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 changing hands.

DNOW Trading Up 9.4 %

The firm has a market capitalization of $1.60 billion, a PE ratio of 8.07 and a beta of 1.53. The firm's fifty day moving average price is $13.95 and its 200 day moving average price is $13.37.

DNOW (NYSE:DNOW - Get Free Report) last posted its earnings results on Thursday, November 7th. The oil and gas company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.19 by $0.02. The company had revenue of $606.00 million during the quarter, compared to the consensus estimate of $614.92 million. DNOW had a net margin of 8.70% and a return on equity of 8.90%. During the same period in the previous year, the firm posted $0.25 earnings per share. The company's revenue for the quarter was up 3.1% compared to the same quarter last year. As a group, research analysts expect that DNOW Inc. will post 0.81 EPS for the current year.

DNOW declared that its Board of Directors has approved a stock repurchase plan 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 stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, Director Paul M. Coppinger sold 26,186 shares of the stock in a transaction that occurred 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 completion of the sale, the director now owns 56,568 shares in the company, valued at $868,318.80. This represents a 31.64 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DNOW. Pacer Advisors Inc. raised its stake in shares of DNOW by 9.4% in the 4th quarter. Pacer Advisors Inc. now owns 6,307,678 shares of the oil and gas company's stock valued at $82,063,000 after buying an additional 543,403 shares in the last quarter. Foundry Partners LLC increased its position in DNOW by 832.0% in the 3rd quarter. Foundry Partners LLC now owns 365,795 shares of the oil and gas company's stock valued at $4,730,000 after acquiring an additional 326,547 shares in the last quarter. Weiss Asset Management LP bought a new stake in shares of DNOW during the third quarter worth approximately $2,025,000. AQR Capital Management LLC boosted its stake in DNOW by 21.9% in the second quarter. AQR Capital Management LLC now owns 827,965 shares of the oil and gas company's stock valued at $11,368,000 after acquiring an additional 148,549 shares during the last quarter. Finally, Barclays PLC lifted its holdings in DNOW by 44.6% during the third quarter. Barclays PLC now owns 346,657 shares of the oil and gas company's stock worth $4,484,000 after acquiring an additional 106,927 shares in the last quarter. 97.63% of the stock is currently owned by institutional investors and hedge funds.

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.