NOW Inc. (NYSE:DNOW) finished Friday with an addition of $0.04 to close at $10.94, an upside of 0.37 percent. An average of 772,940 shares of common stock have been traded in the last five days. There was a gain of $0.18 in the past week, and it reached a new high 14 times over the past 12 months. The last 20 days have seen an average of 645,105 shares traded, while the 50-day average volume stands at 694,862.
DNOW stock has decreased by -1.62% in the last month. The company shares reached their 1-month lowest point of $9.87 on 08/02/23. With the stock rallying to its 52-week high on 02/13/23, shares of the company touched a low of $8.83 and a high of $14.86 in 52 weeks. It has reached a new high 14 times so far this year and lost -13.86% or -$1.76 in price. In spite of this, the price is down -26.38% from the 52-week high.
Valuation Metrics
NOW Inc. (DNOW) has a trailing price-to-earnings (P/E) ratio of 9.41. The stock’s beta is 1.61. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.51, the price-to-book (PB) ratio at 1.34, and the price-to-cash flow ratio at 9.80.
Financial Health
The quick ratio of NOW Inc. for the three months ended June 29 was 1.30, and the current ratio was 2.10, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. NOW Inc.’s EBITDA margin for the year ending June 29 is 7.96%, while its operating margin for the same period stands at 6.70%. Its gross profit as reported stood at $506.0 million compared to revenue of $2.14 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, NOW Inc.’s return on assets was 10.20%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $34.0 million in the quarter, while revenues were grew 23.53%. The analyst consensus anticipated NOW Inc.’s latest quarter earnings to come in at $0.25 per share, but it turned out to be $0.25, a 0.00% surprise. For the quarter, EBITDA amounted to $42.0 million. Shareholders own equity worth $106.72 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at NOW Inc. (DNOW) price momentum. RSI 9-day as of the close on 11 August was 51.30%, suggesting the stock is Neutral, with historical volatility in this time frame at 62.46%.
As of today, DNOW’s price is $10.83 +1.67% or $0.18 from its 5-day moving average. DNOW is currently trading +1.02% higher than its 20-day SMA and +5.60% higher than its 100-day SMA. However, the stock’s current price level is +23.06% above the SMA50 and -4.79% below the SMA200.
The stochastic %K and %D were 52.87% and 51.21%, respectively, and the average true range (ATR) was 0.42. With the 14-day stochastic at 61.49% and the average true range at 0.40, the RSI (14) stands at 51.95%. The stock has reached -0.04 on the 9-day MACD Oscillator while the 14-day reading was at -0.21.
Analyst Ratings
The Benchmark Company launched coverage on NOW Inc. (NYSE: DNOW) in its analyst report released on July 08, 2022. The firm assigned the stock a Buy rating. The consensus rating for NOW Inc. (DNOW) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell DNOW, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.
What is DNOW’s price target for the next 12 months?
Analysts predict a range of price targets between $10.50 and $16.00, with a median target of $13.00. Taking a look at these predictions, the average price target given by analysts for NOW Inc. (DNOW) stock is $13.17.
