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

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

DSGR has been the subject of several other research reports. Zacks Research cut shares of Distribution Solutions Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, June 11th. Stephens set a $35.00 price objective on shares of Distribution Solutions Group in a research report on Thursday. Finally, Weiss Ratings lowered Distribution Solutions Group from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, July 10th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average target price of $35.00.

Distribution Solutions Group Stock Up 0.2%

Shares of DSGR stock opened at $34.50 on Friday. The stock has a market cap of $1.59 billion, a P/E ratio of 287.50 and a beta of 0.56. Distribution Solutions Group has a one year low of $19.02 and a one year high of $34.83. The stock has a fifty day moving average price of $27.65 and a 200 day moving average price of $27.75. The company has a debt-to-equity ratio of 1.07, a current ratio of 2.63 and a quick ratio of 1.39.

Distribution Solutions Group (NASDAQ:DSGR) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.02). The business had revenue of $496.00 million during the quarter, compared to the consensus estimate of $489.30 million. Distribution Solutions Group had a net margin of 0.27% and a return on equity of 8.49%. Analysts predict that Distribution Solutions Group will post 1.31 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of DSGR. Nantahala Capital Management LLC acquired a new position in Distribution Solutions Group during the second quarter worth about $5,791,000. Agman Capital LLC acquired a new stake in shares of Distribution Solutions Group in the 4th quarter valued at approximately $4,954,000. Blair William & Co. IL bought a new stake in shares of Distribution Solutions Group during the 4th quarter valued at approximately $3,092,000. Highlander Partners L.P. bought a new stake in shares of Distribution Solutions Group during the 4th quarter valued at approximately $2,353,000. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Distribution Solutions Group by 364.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 78,365 shares of the company’s stock valued at $2,146,000 after purchasing an additional 61,500 shares during the last quarter. Institutional investors and hedge funds own 91.64% of the company’s stock.

Key Headlines 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.