In a recent transaction, Mark B. Johnson, Senior Vice President and Chief Financial Officer of DNOW Inc. (NYSE:DNOW), sold 47,015 shares of the company's common stock at an average price of $13.50, totaling approximately $634,702. This sale occurred on May 14, 2024, as reported in the latest SEC filings.
On the same day, Johnson also acquired the same number of shares at $9.90 per share, amounting to a total transaction value of $465,448. These transactions reflect a typical exercise of options followed by an immediate sale of the acquired shares, a common practice among executives.
The transactions have led to a change in Johnson's holdings in DNOW Inc., with the post-transaction amount showing he now owns 180,393 shares directly.
DNOW Inc., headquartered in Houston, Texas, operates in the oil and gas field machinery and equipment sector and is incorporated in Delaware. The company's business address and mail address are both listed at 7402 North Eldridge Parkway, Houston, TX 77041.
Investors often monitor the buying and selling activities of insiders as it can provide insights into their perspective on the company's current valuation and future prospects. However, such transactions can be based on various personal financial strategies and thus do not always indicate a clear directional view of the company's future performance.
InvestingPro Insights
As DNOW Inc. (NYSE:DNOW) navigates the dynamic oil and gas field machinery and equipment sector, the company's financial health and market performance remain focal points for investors. A glance through InvestingPro's real-time data reveals that DNOW maintains a market capitalization of approximately $1.49 billion, underscoring its significant presence in the industry.
One of the standout InvestingPro Data metrics is the company's P/E Ratio, which stands at an attractive 6.39. This figure suggests that DNOW is trading at a low earnings multiple, potentially highlighting an opportunity for investors seeking value stocks. Additionally, the company boasts a strong free cash flow yield, as indicated by its Adjusted P/E Ratio for the last twelve months as of Q1 2024, which is 6.16.
Investors considering DNOW will find it encouraging that the company holds more cash than debt on its balance sheet, according to one of the InvestingPro Tips. This financial stability is an important consideration, especially in an industry that can be subject to volatile commodity prices and regulatory changes. Moreover, DNOW has demonstrated a high return over the last year, with a one-year price total return of 55.58%, showcasing its robust performance in the market.
For those looking for further insights, there are additional InvestingPro Tips available for DNOW, providing a comprehensive analysis of the company's financials and market potential. Interested investors can explore these tips and make more informed decisions by visiting https://www.investing.com/pro/DNOW. To enhance the value of your InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It's worth noting that while DNOW's revenue has seen a slight growth of 2.36% over the last twelve months as of Q1 2024, the quarterly revenue growth has experienced a dip of -3.6%. Nevertheless, the company's liquid assets exceed its short-term obligations, which could provide some reassurance to investors about the company's ability to meet its immediate financial liabilities.
As the company progresses through 2024, with the next earnings date set for July 31, investors will be keenly observing DNOW's performance and strategic initiatives. With 11 additional InvestingPro Tips listed for DNOW, there is a wealth of information available for those looking to delve deeper into the company's prospects.
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