NOW Inc. (NYSE: DNOW) stock fell -1.83% on Friday to $11.27 against a previous-day closing price of $11.48. With 1.12 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.74 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $11.69 whereas the lowest price it dropped to was $11.22. The 52-week range on DNOW shows that it touched its highest point at $12.55 and its lowest point at $6.83 during that stretch. It currently has a 1-year price target of $13.30. Beta for the stock currently stands at 1.68.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DNOW was up-trending over the past week, with a rise of 4.26%, but this was up by 22.90% over a month. Three-month performance dropped to -3.68% while six-month performance rose 23.85%. The stock gained 39.65% in the past year, while it has gained 31.97% so far this year. A look at the trailing 12-month EPS for DNOW yields 0.41 with Next year EPS estimates of 0.79. For the next quarter, that number is 0.17. This implies an EPS growth rate of 101.20% for this year and 21.30% for next year.
Float and Shares Shorts:
At present, 111.00 million DNOW shares are outstanding with a float of 109.22 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.48 million, which was 2.24% higher than short shares on Jun 14, 2022. In addition to Mr. David A. Cherechinsky as the firm’s CEO, Pres & Director, Mr. Mark B. Johnson serves as its Sr. VP & CFO.
Through their ownership of 97.30% of DNOW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.02% of DNOW, in contrast to 40.10% held by mutual funds. Shares owned by individuals account for 2.75%. As the largest shareholder in DNOW with 14.77% of the stake, BlackRock Fund Advisors holds 16,351,564 shares worth 16,351,564. A second-largest stockholder of DNOW, The Vanguard Group, Inc., holds 12,492,586 shares, controlling over 11.28% of the firm’s shares. Renaissance Technologies LLC is the third largest shareholder in DNOW, holding 5,126,979 shares or 4.63% stake. With a 7.05% stake in DNOW, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 7,806,019 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.97% of DNOW stock, is the second-largest Mutual Fund holder. It holds 3,285,839 shares valued at 32.14 million. Vanguard Small Cap Index Fund holds 2.52% of the stake in DNOW, owning 2,790,924 shares worth 27.3 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, DNOW reported revenue of $473.00M and operating income of $23.00M. Over the past year, revenue came in at $1.74B while operating income stood at $40.00M. It generated $30.00M net income for the quarter, which came to $45.00M over the last twelve months. The EBITDA in the recently reported quarter was $27.00M and diluted EPS was $0.27. EBITDA for the full year was $67.00M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DNOW since 5 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DNOW analysts setting a high price target of $16.00 and a low target of $12.50, the average target price over the next 12 months is $13.90. Based on these targets, DNOW could surge 41.97% to reach the target high and rise by 10.91% to reach the target low. Reaching the average price target will result in a growth of 23.34% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DNOW will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $1.09 being high and $0.62 being low. For DNOW, this leads to a yearly average estimate of $0.77. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NOW Inc. surprised analysts by $0.09 when it reported $0.26 EPS against a consensus estimate of $0.17. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.27 and the low estimate is $0.18. The average estimate for the next quarter is thus $0.23.
Summary of Insider Activity:
Insiders traded DNOW stock several times over the past three months with 7 Buys and 0 Sells. In these transactions, 85,391 shares were bought while 0 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 400,206 while 16,634 shares were sold.