Just the Facts on NOW Inc. (DNOW)

NOW Inc. (DNOW) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Equipment & Services. The stock has been active on the tape, currently trading at $9.75, down from yesterday’s close by -1.22%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

NOW Inc. (DNOW) currently trades with a market capitalization of $1.10 Billion. That value represents a market adjusting for revenues that have been growing by 34.04 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$62 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.06 on a per share basis this quarter. Perhaps, that suggests something about why 1.67% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how DNOW has been acting. Looking at the stock’s movement on the chart, NOW Inc. recorded a 52-week high of $22.78. It is now trading 13.03% off that level. The stock is trading $11.22 its 50-day moving average by 1.47%. The stock carved out a 52-week low down at $9.12.

In recent action, NOW Inc. (DNOW) has made a move of -24.07% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.62, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 15.44% with $105.93 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of DNOW.

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