In a recent transaction, David A. Cherechinsky, President and CEO of DNOW Inc. (NYSE:DNOW), sold shares of the company's stock for a total value of approximately $1.68 million. The transaction, which took place on May 14, 2024, involved the sale of 123,881 shares at an average price of $13.57 per share. Following the sale, Cherechinsky's direct ownership in DNOW Inc. decreased to 775,559 shares.
On the same day, Cherechinsky also acquired 123,881 shares at a price of $9.90 per share, totaling around $1.23 million. These shares were acquired through the execution of non-qualified stock options, which are rights to buy the company's stock. This transaction did not involve any derivative securities.
DNOW Inc., with its headquarters in Houston, Texas, operates in the oil and gas field machinery and equipment industry. The company, formerly known as NOW Inc., changed its name in 2014 and is incorporated in Delaware. With a fiscal year ending on December 31, DNOW Inc. is a prominent player in its sector.
The transactions were publicly reported in a Form 4 filing with the Securities and Exchange Commission, which provides insights into the trading activities of the company's insiders. The CEO's recent stock sale and acquisition offer investors a glimpse into executive movements within DNOW Inc., although the reasons behind Cherechinsky's decision to sell and buy shares are not disclosed in the filing.
InvestingPro Insights
Amidst the recent insider trading activity at DNOW Inc., the company's financial health and market performance provide additional context for investors. DNOW Inc. has a market capitalization of approximately $1.49 billion, reflecting its position in the oil and gas field machinery and equipment industry. Notably, the company's P/E ratio stands at a modest 6.39, and when adjusted for the last twelve months as of Q1 2024, it slightly improves to 6.16. This suggests that the stock may be undervalued relative to its earnings, which could interest value-focused investors.
Another key metric for investors is the company's revenue growth. DNOW Inc. has seen a steady revenue increase of 2.36% over the last twelve months as of Q1 2024, despite a quarterly dip of -3.6% in Q1 2024. This indicates a positive trend in the company's ability to generate sales over a longer period, albeit with some short-term fluctuations.
InvestingPro Tips highlight that DNOW Inc. holds more cash than debt on its balance sheet and has a valuation that implies a strong free cash flow yield. These factors could be reassuring for investors looking for financially stable companies with the potential for good cash returns. Additionally, analysts predict that DNOW Inc. will be profitable this year, and the company has been profitable over the last twelve months. This aligns with the CEO's confidence as demonstrated by the recent acquisition of shares through stock options.
For those looking to delve deeper into DNOW Inc.'s financials and future prospects, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/DNOW. To enhance your experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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