Distribution Solutions Group (NASDAQ:DSGR) Cut to Hold at Stephens

Stephens cut shares of Distribution Solutions Group (NASDAQ:DSGR) from a strong-buy rating to a hold rating in a research report report published on Thursday morning,Zacks.com reports.

Several other research firms have also commented on DSGR. Weiss Ratings lowered shares of Distribution Solutions Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, July 10th. Zacks Research lowered shares of Distribution Solutions Group from a “hold” rating to a “strong sell” rating in a report on Thursday, June 11th. Finally, Barrington Research reduced their target price on shares of Distribution Solutions Group from $35.00 to $33.00 and set an “outperform” rating on the stock in a report on Thursday, May 21st. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $35.00.

Distribution Solutions Group Price Performance

Shares of Distribution Solutions Group stock opened at $34.50 on Thursday. The business’s fifty day moving average price is $27.65 and its 200 day moving average price is $27.75. Distribution Solutions Group has a twelve month low of $19.02 and a twelve month high of $34.83. The company has a current ratio of 2.63, a quick ratio of 1.39 and a debt-to-equity ratio of 1.07. The stock has a market capitalization of $1.59 billion, a P/E ratio of 287.50 and a beta of 0.56.

Distribution Solutions Group (NASDAQ:DSGR) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.24 EPS for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.02). The firm had revenue of $496.00 million during the quarter, compared to analysts’ expectations of $489.30 million. Distribution Solutions Group had a return on equity of 8.49% and a net margin of 0.27%. As a group, research analysts anticipate that Distribution Solutions Group will post 1.31 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Highlander Partners L.P. purchased a new stake in Distribution Solutions Group during the 4th quarter worth $2,353,000. Credit Industriel ET Commercial purchased a new position in Distribution Solutions Group in the 1st quarter valued at about $836,000. Agman Capital LLC acquired a new stake in shares of Distribution Solutions Group during the fourth quarter valued at about $4,954,000. Inspire Investing LLC grew its stake in shares of Distribution Solutions Group by 16.1% during the first quarter. Inspire Investing LLC now owns 19,642 shares of the company’s stock valued at $515,000 after acquiring an additional 2,725 shares in the last quarter. Finally, Rangeley Capital LLC purchased a new stake in shares of Distribution Solutions Group during the first quarter worth about $442,000. 91.64% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Distribution Solutions Group

Here are the key news stories impacting Distribution Solutions Group this week:

• Positive Sentiment: DSGR agreed to be acquired by affiliates of LKCM Headwater Investments for $35.00 per share in cash, giving investors a clear exit price and effectively putting a floor under the stock. Distribution Solutions Group to Be Taken Private by Affiliates of LKCM Headwater Investments for $35.00 Per Common Share in Cash
• Positive Sentiment: The merger announcement likely explains the stock’s strength, as shares are trading close to the deal value and volume has picked up on the news.
• Neutral Sentiment: TestEquity, a DSGR business, announced expanded environmental chamber sales representation across the Midwest, which is modestly supportive but not likely a major stock driver by itself. TestEquity Expands Environmental Chamber Sales Reach with Millennium Alliance Representation Across the Midwest
• Negative Sentiment: Stephens downgraded DSGR from strong-buy to hold, signaling less upside from an analyst perspective now that the acquisition price is largely known. Zacks.com report on Stephens downgrade
• Negative Sentiment: Multiple law firms, including Kaskela Law, Halper Sadeh, and Ademi LLP, launched investigations into whether the $35.00 per share buyout price is fair to shareholders, raising the risk of litigation and potential deal scrutiny. Kaskela Law Firm shareholder investigation

About Distribution Solutions Group

Distribution Solutions Group, Inc, a specialty distribution company, engages in the provision of value-added distribution solutions in North America, Europe, Asia, South America, and the Middle East. The company provides its solutions to the maintenance, repair, and operations (MRO); original equipment manufacturer (OEM); and industrial technology markets. It operates through three segments: Lawson, Gexpro Services, and TestEquity. The Lawson segment distributes of specialty products and services to the industrial, commercial, institutional, and government MRO market.