This trade activity should not be overlooked: NOW Inc. (DNOW)

NOW Inc. (NYSE: DNOW) stock jumped 1.79% on Tuesday to $9.67 against a previous-day closing price of $9.50. With 0.67 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.82 million shares. The 52-week range on DNOW shows that it touched its highest point at $14.86 and its lowest point at $8.79 during that stretch. It currently has a 1-year price target of $13.50. Beta for the stock currently stands at 1.61.

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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 7.92%, but this was down by -11.77% over a month. Three-month performance dropped to -22.33% while six-month performance fell -25.84%. The stock lost -6.84% in the past year, while it has lost -23.86% so far this year. A look at the trailing 12-month EPS for DNOW yields 1.16 with Next year EPS estimates of 1.09. For the next quarter, that number is 0.25. This implies an EPS growth rate of 243.30% for this year and 6.32% for next year.

Float and Shares Shorts:

At present, 110.00 million DNOW shares are outstanding with a float of 105.33 million shares on hand for trading. On Apr 27, 2023, short shares totaled 1.3 million, which was 1.22% higher than short shares on Mar 30, 2023. In addition to Mr. David A. Cherechinsky as the firm’s CEO, Pres & Director, Mr. Mark B. Johnson serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 99.35% of DNOW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.67% of DNOW, in contrast to 37.88% held by mutual funds. Shares owned by individuals account for 2.99%. As the largest shareholder in DNOW with 15.29% of the stake, BlackRock Fund Advisors holds 16,866,061 shares worth 16,866,061. A second-largest stockholder of DNOW, The Vanguard Group, Inc., holds 13,029,184 shares, controlling over 11.81% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in DNOW, holding 6,255,868 shares or 5.67% stake. With a 7.27% stake in DNOW, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 8,017,057 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.06% of DNOW stock, is the second-largest Mutual Fund holder. It holds 3,380,416 shares valued at 36.07 million. Vanguard Small Cap Index Fund holds 2.62% of the stake in DNOW, owning 2,892,789 shares worth 30.87 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, 2023, DNOW reported revenue of $539.00M and operating income of $39.00M. The EBITDA in the recently reported quarter was $54.00M and diluted EPS was $0.23.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DNOW since 0 analysts follow the stock currently. 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 $14.00 and a low target of $10.50, the average target price over the next 12 months is $12.25. Based on these targets, DNOW could surge 44.78% to reach the target high and rise by 8.58% to reach the target low. Reaching the average price target will result in a growth of 26.68% 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.

Summary of Insider Activity:

Insiders traded DNOW stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 377,697 while 50,334 shares were sold.

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