DNOW (NYSE:DNOW) Stock Rating Upgraded by Wall Street Zen

DNOW (NYSE:DNOW) was upgraded by stock analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research report issued on Saturday.

DNOW has been the topic of several other reports. Zacks Research raised DNOW from a “strong sell” rating to a “hold” rating in a research report on Friday, May 22nd. Susquehanna raised their target price on DNOW from $16.00 to $19.00 and gave the stock a “positive” rating in a report on Friday. Weiss Ratings reiterated a “sell (d+)” rating on shares of DNOW in a research report on Wednesday, May 27th. Freedom Capital raised DNOW to a “strong-buy” rating in a report on Monday, June 22nd. Finally, DA Davidson began coverage on DNOW in a research report on Tuesday, June 16th. They issued a “buy” rating and a $17.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, DNOW currently has an average rating of “Moderate Buy” and an average target price of $17.75.

DNOW Trading Down 0.0%

DNOW stock opened at $16.52 on Friday. The company has a quick ratio of 1.06, a current ratio of 2.14 and a debt-to-equity ratio of 0.23. DNOW has a 52 week low of $10.94 and a 52 week high of $17.26. The company has a market capitalization of $2.99 billion, a price-to-earnings ratio of -15.44 and a beta of 0.82. The stock has a 50-day moving average price of $13.62 and a 200 day moving average price of $13.34.

DNOW (NYSE:DNOW) last released its quarterly earnings data on Thursday, August 6th. The oil and gas company reported $0.12 EPS for the quarter, beating the consensus estimate of $0.09 by $0.03. The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.27 billion. DNOW had a negative net margin of 4.58% and a positive return on equity of 3.91%. The business’s revenue for the quarter was up 108.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.27 EPS. Sell-side analysts anticipate that DNOW will post 0.33 EPS for the current year.

Hedge Funds Weigh In On DNOW

Hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of DNOW in the second quarter valued at approximately $374,942,000. Vanguard Group Inc. raised its stake in shares of DNOW by 66.1% during the 4th quarter. Vanguard Group Inc. now owns 19,498,204 shares of the oil and gas company’s stock worth $258,351,000 after buying an additional 7,762,071 shares during the period. Wellington Management Group LLP lifted its position in shares of DNOW by 187.2% during the 4th quarter. Wellington Management Group LLP now owns 10,813,205 shares of the oil and gas company’s stock valued at $143,275,000 after buying an additional 7,048,382 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of DNOW by 60.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 10,374,585 shares of the oil and gas company’s stock valued at $137,466,000 after buying an additional 3,920,731 shares in the last quarter. Finally, Boston Partners grew its stake in DNOW by 66.0% in the 4th quarter. Boston Partners now owns 7,859,416 shares of the oil and gas company’s stock valued at $104,171,000 after acquiring an additional 3,124,280 shares during the period. Hedge funds and other institutional investors own 97.63% of the company’s stock.

Key Stories Impacting DNOW

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: Quarterly results exceeded expectations: Q2 revenue rose 108% year over year to $1.307 billion, ahead of the approximately $1.27 billion consensus estimate. Adjusted EPS was $0.12, beating forecasts ranging from $0.08 to $0.09, although the company reported a GAAP net loss of $21 million, or $0.11 per share. DNOW Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Operating momentum improved: Revenue increased 10% sequentially, U.S. revenue grew 13%, and adjusted EBITDA climbed 54% sequentially to $60 million as integration and cost-management efforts advanced. Management also said U.S. midstream revenue exceeded a $1 billion annualized rate for the first time. DNOW Reports Second Quarter 2026 Results
• Positive Sentiment: Cash flow and capital returns strengthened: Operating cash flow reached a record $133 million, while DNOW repurchased $25 million of stock during the quarter and $75 million year to date under its $160 million authorization. Net debt leverage improved to 1.7 times. DNOW Reports Strong Second Quarter Results
• Positive Sentiment: Analyst sentiment improved: Susquehanna raised its price target from $16 to $19 and upgraded DNOW to “positive,” citing the company’s stronger sales and raised 2026 revenue and cash-flow outlook. Benzinga Analyst Update
• Neutral Sentiment: Profitability remains mixed: Reported gross margin was 18.6%, below 20.5% a year earlier, and adjusted EBITDA represented 4.6% of revenue. Investors may continue to monitor whether the higher sales volume translates into sustainable GAAP profitability.
• Negative Sentiment: Legal overhang persists: Rosen Law Firm and Bronstein, Gewirtz & Grossman announced securities class actions alleging investor harm related to DNOW’s 2025 special meeting disclosures. The developments could create litigation costs and reputational risk, although they have not offset the positive earnings reaction. DNOW Securities Class Action

About DNOW

DistributionNOW (NYSE: DNOW) is a global distributor of energy and industrial products, serving a broad range of end-markets including oil and gas, petrochemical, power generation, and industrial manufacturing. Headquartered in Houston, Texas, the company provides solutions across the life cycle of energy and industrial assets, with an emphasis on safety, reliability and operational efficiency.

The company’s core product portfolio includes piping systems and related components (such as valves, fittings, flanges and gaskets), instrumentation, electrical and automation equipment, fasteners, industrial safety supplies, chemicals and composite products.