Distribution Solutions Group (NASDAQ:DSGR) Rating Lowered to “Hold” at Stephens

Distribution Solutions Group (NASDAQ:DSGR) was downgraded by research analysts at Stephens from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Thursday,Zacks.com reports.

A number of other equities analysts have also recently issued reports on the company. Weiss Ratings cut Distribution Solutions Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, July 10th. Barrington Research cut their price target on Distribution Solutions Group from $35.00 to $33.00 and set an “outperform” rating on the stock in a report on Thursday, May 21st. Finally, Zacks Research cut Distribution Solutions Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, June 11th. Two analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $35.00.

Distribution Solutions Group Stock Up 0.2%

Shares of DSGR stock opened at $34.50 on Thursday. The firm has a fifty day moving average of $27.65 and a 200-day moving average of $27.75. The company has a quick ratio of 1.39, a current ratio of 2.63 and a debt-to-equity ratio of 1.07. Distribution Solutions Group has a 12-month low of $19.02 and a 12-month high of $34.83. The company has a market capitalization of $1.59 billion, a price-to-earnings ratio of 287.50 and a beta of 0.56.

Distribution Solutions Group (NASDAQ:DSGR) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.24 EPS for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.02). The company had revenue of $496.00 million for the quarter, compared to analyst estimates of $489.30 million. Distribution Solutions Group had a return on equity of 8.49% and a net margin of 0.27%. As a group, equities research analysts predict that Distribution Solutions Group will post 1.31 earnings per share for the current fiscal year.

Institutional Trading of Distribution Solutions Group

Institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP grew its position in Distribution Solutions Group by 2.9% in the first quarter. Dimensional Fund Advisors LP now owns 937,151 shares of the company’s stock valued at $24,590,000 after purchasing an additional 26,595 shares in the last quarter. Nantahala Capital Management LLC increased its stake in Distribution Solutions Group by 43.3% in the 4th quarter. Nantahala Capital Management LLC now owns 330,000 shares of the company’s stock valued at $9,039,000 after buying an additional 99,661 shares during the last quarter. Gamco Investors INC. ET AL lifted its position in Distribution Solutions Group by 9.4% during the 1st quarter. Gamco Investors INC. ET AL now owns 279,945 shares of the company’s stock worth $7,346,000 after buying an additional 24,141 shares in the last quarter. Agman Capital LLC bought a new stake in Distribution Solutions Group during the 4th quarter worth about $4,954,000. Finally, First Trust Advisors LP boosted its stake in shares of Distribution Solutions Group by 15.8% during the 1st quarter. First Trust Advisors LP now owns 180,152 shares of the company’s stock worth $4,727,000 after buying an additional 24,633 shares during the last quarter. Institutional investors own 91.64% of the company’s stock.

Key Stories Impacting Distribution Solutions Group

Here are the key news stories impacting Distribution Solutions Group this week:

• Positive Sentiment: DSGR agreed to be acquired by affiliates of LKCM Headwater Investments for $35.00 per share in cash, giving investors a clear exit price and effectively putting a floor under the stock. Distribution Solutions Group to Be Taken Private by Affiliates of LKCM Headwater Investments for $35.00 Per Common Share in Cash
• Positive Sentiment: The merger announcement likely explains the stock’s strength, as shares are trading close to the deal value and volume has picked up on the news.
• Neutral Sentiment: TestEquity, a DSGR business, announced expanded environmental chamber sales representation across the Midwest, which is modestly supportive but not likely a major stock driver by itself. TestEquity Expands Environmental Chamber Sales Reach with Millennium Alliance Representation Across the Midwest
• Negative Sentiment: Stephens downgraded DSGR from strong-buy to hold, signaling less upside from an analyst perspective now that the acquisition price is largely known. Zacks.com report on Stephens downgrade
• Negative Sentiment: Multiple law firms, including Kaskela Law, Halper Sadeh, and Ademi LLP, launched investigations into whether the $35.00 per share buyout price is fair to shareholders, raising the risk of litigation and potential deal scrutiny. Kaskela Law Firm shareholder investigation

About Distribution Solutions Group

Distribution Solutions Group, Inc, a specialty distribution company, engages in the provision of value-added distribution solutions in North America, Europe, Asia, South America, and the Middle East. The company provides its solutions to the maintenance, repair, and operations (MRO); original equipment manufacturer (OEM); and industrial technology markets. It operates through three segments: Lawson, Gexpro Services, and TestEquity. The Lawson segment distributes of specialty products and services to the industrial, commercial, institutional, and government MRO market.