Shares of Distribution Solutions Group, Inc. (NASDAQ:DSGR) experienced a notable increase before the market opened on Monday, rising from a previous close of $27.01 to an opening price of $28.59. As of the most recent trading session, shares were priced at $27.35, with a trading volume of 7,611 shares recorded.
Analysts have recently provided various insights concerning the company’s stock. Barrington Research reaffirmed an “outperform” rating with a price target of $41.00 in a report dated November 5. Conversely, Weiss Ratings maintained a “sell (d)” rating on November 19. Currently, one research analyst has assigned a Buy rating while another has issued a Sell rating. According to data from MarketBeat, the stock holds an average rating of “Hold” alongside a consensus price target of $41.00.
Recent Earnings and Strategic Moves
On October 30, 2023, Distribution Solutions Group published its quarterly earnings report, revealing earnings per share (EPS) of $0.40, which fell short of the analysts’ consensus estimate of $0.42 by $0.02. The company recorded a return on equity of 10.51% and a net margin of 0.22%. Analysts predict that Distribution Solutions Group will achieve an EPS of 1.28 for the current fiscal year.
In a strategic move to enhance shareholder value, the company’s board authorized a stock buyback plan on November 17, permitting the repurchase of up to $30 million in shares. This buyback plan allows the reacquisition of approximately 2.5% of the company’s stock through open market purchases, a step often interpreted as a sign that the board perceives the shares as undervalued.
Institutional Investor Activity
Recent trading activity among institutional investors indicates a growing interest in Distribution Solutions Group. BNP Paribas Financial Markets raised its stake in the company by 53.5% during the second quarter, now holding 1,170 shares valued at approximately $32,000. Additionally, Quarry LP acquired a new stake worth $42,000 in the third quarter, while Covestor Ltd increased its holdings by 27.3%, now owning 2,232 shares valued at $67,000.
The State of Alaska Department of Revenue also entered the market, acquiring a new stake valued at around $80,000. Overall, institutional investors and hedge funds collectively hold 91.64% of Distribution Solutions Group’s stock, reflecting strong confidence in the company’s potential.
Distribution Solutions Group, Inc. operates as a specialty distribution company, delivering value-added distribution solutions across multiple regions, including North America, Europe, Asia, South America, and the Middle East. The company primarily serves the maintenance, repair, and operations (MRO), original equipment manufacturer (OEM), and industrial technology markets.
Investors are now closely monitoring the company’s stock performance and analyst ratings as they evaluate potential opportunities in the market.
