DNOW (NYSE:DNOW) Shares Gap Down – Here’s What Happened

DNOW Inc. (NYSE:DNOW) gapped down before the market opened on Friday . The stock had previously closed at $16.36, but opened at $14.44. DNOW shares last traded at $13.31, with a volume of 650,189 shares.

Key Stories Impacting DNOW

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: Big top‑line growth — revenue rose ~68% YoY, reflecting strong sales expansion compared with Q4 last year. Business Wire: Q4 and Full‑Year Results
• Neutral Sentiment: EPS met Street expectations at $0.15, avoiding an outright earnings miss; management hosted an earnings call and provided a slide deck for investors to review. MarketBeat: Earnings / Call Materials
• Neutral Sentiment: Earnings call transcript and summaries are available for details on execution, backlog and working capital — useful to parse whether growth is sustainable. Seeking Alpha: Call Transcript
• Negative Sentiment: Revenue missed consensus by roughly $10.5M ($959.0M vs. $969.5M), a modest shortfall that likely weighed on sentiment. Yahoo Finance: Misses Sales Expectations
• Negative Sentiment: Market commentary highlighted a swing to a loss on the period (appearance of weaker profitability metrics), which triggered an intraday share selloff and higher trading volume. MarketWatch: Shares Drop After Swing to Loss
• Negative Sentiment: Share technicals look pressured: the stock is trading below its 50‑ and 200‑day moving averages and volume is well above average today, amplifying downside momentum. MarketBeat: Price & Volume Snapshot
• Neutral Sentiment: What to watch next: management’s Q1 guidance and margin outlook, free cash flow and working capital trends, backlog/booking commentary from the call, and whether analysts adjust estimates after the minor revenue miss. Yahoo: Call Summary

Analysts Set New Price Targets

A number of research analysts have commented on the company. Stifel Nicolaus reaffirmed a “buy” rating and issued a $18.00 price objective on shares of DNOW in a report on Monday, November 24th. Zacks Research upgraded shares of DNOW from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 1st. Susquehanna upgraded shares of DNOW from a “neutral” rating to a “positive” rating and set a $16.00 price objective for the company in a research note on Friday, November 21st. Wall Street Zen raised shares of DNOW from a “buy” rating to a “strong-buy” rating in a report on Saturday, February 14th. Finally, KeyCorp set a $19.00 target price on shares of DNOW in a research report on Thursday, December 18th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $17.67.

DNOW Stock Down 19.1%

The firm has a market capitalization of $1.39 billion, a P/E ratio of -45.64 and a beta of 0.79. The business’s 50 day moving average is $14.58 and its 200-day moving average is $14.62.

DNOW (NYSE:DNOW) last released its earnings results on Friday, February 20th. The oil and gas company reported $0.15 earnings per share for the quarter, hitting the consensus estimate of $0.15. DNOW had a return on equity of 9.35% and a net margin of 3.91%.The firm had revenue of $959.00 million during the quarter, compared to analysts’ expectations of $969.50 million. During the same period in the prior year, the company earned $0.25 earnings per share. The company’s quarterly revenue was up 68.0% on a year-over-year basis. Research analysts forecast that DNOW Inc. will post 0.86 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Blue Trust Inc. bought a new position in DNOW in the 4th quarter valued at approximately $25,000. Quarry LP increased its holdings in shares of DNOW by 712.6% during the fourth quarter. Quarry LP now owns 1,942 shares of the oil and gas company’s stock worth $26,000 after buying an additional 1,703 shares in the last quarter. Clearstead Advisors LLC lifted its stake in shares of DNOW by 132.5% in the 4th quarter. Clearstead Advisors LLC now owns 2,427 shares of the oil and gas company’s stock valued at $32,000 after acquiring an additional 1,383 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of DNOW by 190.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,423 shares of the oil and gas company’s stock valued at $36,000 after acquiring an additional 1,589 shares in the last quarter. Finally, Arax Advisory Partners boosted its holdings in shares of DNOW by 336.3% during the 4th quarter. Arax Advisory Partners now owns 2,797 shares of the oil and gas company’s stock valued at $37,000 after acquiring an additional 2,156 shares in the last quarter. Institutional investors and hedge funds own 97.63% of the company’s stock.

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.