Distribution Solutions Group (NASDAQ:DSGR) Cut to “Hold” at Barrington Research

Barrington Research downgraded shares of Distribution Solutions Group (NASDAQ:DSGR) from a strong-buy rating to a hold rating in a report released on Friday morning,Zacks.com reports.

Several other research firms have also issued reports on DSGR. Stephens set a $35.00 target price on shares of Distribution Solutions Group in a report on Thursday. Weiss Ratings cut Distribution Solutions Group from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, July 10th. Finally, Zacks Research downgraded shares of Distribution Solutions Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, June 11th. Two research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $35.00.

Distribution Solutions Group Stock Performance

DSGR stock opened at $34.50 on Friday. Distribution Solutions Group has a fifty-two week low of $19.02 and a fifty-two week high of $34.83. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.39 and a current ratio of 2.63. The firm has a fifty day moving average price of $27.65 and a 200 day moving average price of $27.74. The firm has a market cap of $1.59 billion, a PE ratio of 287.50 and a beta of 0.56.

Distribution Solutions Group (NASDAQ:DSGR) last issued 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 business 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%. Sell-side analysts anticipate that Distribution Solutions Group will post 1.31 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Highlander Partners L.P. acquired a new position in shares of Distribution Solutions Group during the fourth quarter worth $2,353,000. Credit Industriel ET Commercial purchased a new position in shares of Distribution Solutions Group in the first quarter worth about $836,000. Agman Capital LLC purchased a new position in Distribution Solutions Group during the 4th quarter worth approximately $4,954,000. Inspire Investing LLC lifted its position in 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 purchasing an additional 2,725 shares during the period. Finally, Rangeley Capital LLC acquired a new position in shares of Distribution Solutions Group in the 1st quarter valued at about $442,000. Institutional investors own 91.64% of the company’s stock.

Distribution Solutions Group News Summary

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.