DNOW (NYSE:DNOW) to Repurchase $160.00 million in Outstanding Shares

DNOW (NYSE:DNOW) announced that its board has initiated a share buyback plan on Friday, January 24th, RTT News reports. The company plans to repurchase $160.00 million in outstanding shares. This repurchase authorization allows the oil and gas company to reacquire up to 10% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

DNOW Stock Performance

Shares of DNOW stock traded up $1.30 during trading hours on Friday, hitting $15.10. The company had a trading volume of 1,559,396 shares, compared to its average volume of 1,077,021. DNOW has a 12 month low of $9.44 and a 12 month high of $15.65. The firm’s fifty day moving average is $13.95 and its 200 day moving average is $13.37. The firm has a market capitalization of $1.60 billion, a price-to-earnings ratio of 8.07 and a beta of 1.53.

DNOW (NYSE:DNOW) last issued its earnings results on Thursday, November 7th. The oil and gas company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.19 by $0.02. DNOW had a net margin of 8.70% and a return on equity of 8.90%. The company had revenue of $606.00 million for the quarter, compared to analyst estimates of $614.92 million. During the same quarter last year, the firm earned $0.25 EPS. The company’s revenue for the quarter was up 3.1% on a year-over-year basis. On average, sell-side analysts expect that DNOW will post 0.81 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Paul M. Coppinger sold 26,186 shares of the company’s stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $15.35, for a total transaction of $401,955.10. Following the completion of the transaction, the director now directly owns 56,568 shares in the company, valued at $868,318.80. This represents a 31.64 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 2.60% of the company’s stock.

About DNOW

DNOW Inc distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items.