Wall Street Zen Upgrades DNOW Stock to Strong-Buy Rating

Investment analysts at Wall Street Zen have upgraded the stock rating for DNOW (NYSE:DNOW) from “buy” to “strong-buy”, signaling increased confidence in the company’s future performance. This upgrade was announced in a report released on December 16, 2023, and reflects a growing optimism regarding DNOW’s potential in the energy sector.

Several other equities research analysts have also weighed in on DNOW’s stock. KeyCorp set a target price of $19.00 for shares on December 18, 2023. In contrast, Weiss Ratings reiterated a “hold (c)” rating on December 29, 2023. Additionally, Stifel Nicolaus maintained a “buy” rating with a target price of $18.00 as of November 24, 2023. On January 1, 2024, Zacks Research raised DNOW from a “hold” rating to a “strong-buy.” Finally, Susquehanna reassessed its stance from “neutral” to “positive” with a price target of $16.00 on November 21, 2023.

Currently, one analyst has assigned a “strong buy” rating to DNOW, while two have issued a “buy” rating and one has recommended holding the stock. According to MarketBeat.com, the consensus rating for DNOW stands at “Buy” with a target price averaging $17.67.

Institutional Investment Trends

Recent activity among institutional investors indicates growing interest in DNOW. Notably, Marshall Wace LLP increased its stake by an impressive 919.6% during the fourth quarter, now holding 464,081 shares valued at approximately $6,149,000.

Similarly, The Manufacturers Life Insurance Company boosted its holdings by 74.6%, acquiring an additional 37,756 shares, bringing its total to 88,362 shares worth about $1,171,000. Meanwhile, CANADA LIFE ASSURANCE Co expanded its position by 76.9%, acquiring 70,003 shares to total 161,065 shares valued at approximately $2,133,000.

Other significant movements include Stifel Financial Corp, which established a new position worth around $608,000, and Quarry LP, which increased its stake by 712.6%, now owning 1,942 shares valued at $26,000. Overall, institutional investors and hedge funds currently hold 97.63% of DNOW’s stock, indicating strong institutional confidence in the company.

About DNOW

DistributionNOW (NYSE: DNOW) is a prominent global distributor of energy and industrial products. The company serves a diverse array of end-markets, including oil and gas, petrochemical, power generation, and industrial manufacturing. Based in Houston, Texas, DNOW provides comprehensive solutions throughout the lifecycle of energy and industrial assets, emphasizing safety, reliability, and operational efficiency.

The company’s core product offerings encompass piping systems and associated components such as valves, fittings, flanges, and gaskets, as well as instrumentation, electrical and automation equipment, fasteners, industrial safety supplies, chemicals, and composite products.

As DNOW continues to attract positive attention from analysts and institutional investors alike, its stock performance will be closely monitored as it navigates the evolving landscape of the energy sector.