Wall Street Zen Upgrades DNOW Stock to Strong-Buy Status

Investment analysts at Wall Street Zen have upgraded the stock rating for DNOW (NYSE: DNOW) from “buy” to “strong-buy.” This change, announced in a report released on December 29, 2023, reflects a growing confidence in the company’s financial prospects.

Several other equity research firms have also weighed in on DNOW. KeyCorp set a target price of $19.00 for DNOW shares on December 18. Meanwhile, Weiss Ratings reiterated a “hold (c)” rating, and Stifel Nicolaus maintained a “buy” rating with a target price of $18.00 as of November 24. Additionally, Zacks Research upgraded DNOW from “hold” to “strong-buy” on January 1, while Susquehanna raised its rating from “neutral” to “positive” with a price target of $16.00 on November 21. Currently, one analyst has issued a strong buy rating, two have a buy rating, and one has a hold rating on DNOW stock. According to MarketBeat.com, DNOW holds a consensus rating of “buy” with a target average price of $17.67.

Recent Institutional Activity

Recent trends indicate that large institutional investors are actively adjusting their stakes in DNOW. Marshall Wace LLP significantly increased its stake by 919.6% in the fourth quarter, now owning 464,081 shares valued at approximately $6.15 million. The Manufacturers Life Insurance Company also boosted its holdings by 74.6%, acquiring an additional 37,756 shares to reach a total of 88,362 shares worth around $1.17 million.

Furthermore, CANADA LIFE ASSURANCE Co raised its position in DNOW by 76.9%, now holding 161,065 shares valued at $2.13 million. Stifel Financial Corp entered a new position in DNOW, valued at about $608,000, while Quarry LP increased its stake by 712.6%, now owning 1,942 shares worth $26,000. Currently, institutional investors and hedge funds own approximately 97.63% of DNOW’s stock.

About DNOW

DistributionNOW (NYSE: DNOW) is a global distributor of energy and industrial products, serving diverse end markets such as oil and gas, petrochemical, power generation, and industrial manufacturing. Headquartered in Houston, Texas, the company focuses on providing solutions throughout the lifecycle of energy and industrial assets, emphasizing safety, reliability, and operational efficiency. The core product portfolio includes piping systems and components, instrumentation, electrical and automation equipment, fasteners, industrial safety supplies, chemicals, and composite products.

As DNOW continues to attract analyst attention and institutional investment, its evolving market position may present opportunities for investors seeking to capitalize on the company’s growth potential.