Reassessing The Changing Outlook For NOW Inc. (NYSE: DNOW)


    The Vanguard Group, Inc. recently announced the acquisition of new stake in NOW Inc. (NYSE:DNOW). The institutional investor has increased its shareholding in the Energy company by 0.05% to 10.16 million shares with purchase of 5151.0 shares. This fresh investment now brings its stake to 9.30% valued currently at $87.68 million. In addition, ClearBridge Investments LLC raised its holdings by 0.29 million to 7.56 million shares. And Massachusetts Financial Services. has lifted its position by 4.56% or 0.3 million shares – to 6.97 million shares.

    With over 0.94 million NOW Inc. (DNOW) shares trading Wednesday and a closing price of $8.78 on the day, the dollar volume was approximately $8.29 million. The shares have shown a positive weekly performance of 4.03% and its price on 07/15/20 gained nearly 5.53%. Currently, there are 109.00M common shares owned by the public and among those 108.39M shares have been available to trade.

    Incidentally, analysts’ outlook for the NOW Inc. stock is 2.50 for the next 12 months.

    Insiders at the company have transacted a total of 14 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 10 of these insider trades were purchases, accounting for 187,843 shares. Insider sales of the common stock occurred on 4 occasions, with total insider shares sold totaling 16,705 shares.

    The top 3 mutual fund holders in NOW Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. iShares Core S&P Small Cap ETF owns 6.73 million shares of the company’s stock, all valued at over $58.06 million. Vanguard Total Stock Market Index sold 2730.0 shares to see its total holdings shrink to 3.11 million shares valued at over $26.81 million and representing 2.84% of the shares outstanding. Vanguard Small Cap Index Fund sold 17377.0 shares to bring its total holdings to over 2.82 million shares at a value of $24.36 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.58% of the shares outstanding.

    Shares of NOW Inc. (NYSE: DNOW) opened at $8.60, up $0.28 from a prior closing price of $8.32. However, the script later closed the day at $8.78, up 5.53%. The company’s stock has a 5-day price change of 4.03% and 70.49% over the past three months. DNOW shares are trading -21.89% year to date (YTD), with the 12-month market performance down to -30.54% lower. It has a 12-month low price of $4.05 and touched a high of $13.57 over the same period. Currently, 0.94 million shares have been traded, compared to an average intraday trading volume of 1.57 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.98%, 13.68%, and -2.65% respectively.

    Institutional ownership of NOW Inc. (NYSE: DNOW) 109.00M shares outstanding. Mutual fund holders own 46.07%, while other institutional holders and individual stakeholders account for 55.38% and 2.17% respectively.

    It has a market capitalization of $915.40M and a beta (3y monthly) value of 1.90. The earnings-per-share (ttm) stands at -$4.09. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.24% over the week and 4.79% over the month.

    Analysts forecast that NOW Inc. (DNOW) will achieve an EPS of -$0.29 for the current quarter, -$0.27 for the next quarter and -$0.58 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.39 while analysts give the company a high EPS estimate of -$0.15. Comparatively, EPS for the current quarter was $0.09 a year ago. Earnings per share for the fiscal year are expected to decrease by -283.00%, and 33.30% over the next financial year.

    Looking at the support for the DNOW, a number of firms have released research notes about the stock. Northland Capital stated their Outperform rating for the stock in a research note on July 10, 2020, with the firm’s price target at $9.50. Cowen coverage for the NOW Inc. (DNOW) stock in a research note released on April 14, 2020 offered a Outperform rating with a price target of $8. Cowen was of a view on February 20, 2020 that the stock is Market Perform, while Cowen gave the stock Market Perform rating on August 05, 2019, issuing a price target of $11- $10. CapitalOne on their part issued Overweight rating on August 02, 2019.


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