Barrington Research Downgrades Distribution Solutions Group (NASDAQ:DSGR) to Hold

Distribution Solutions Group (NASDAQ:DSGR) was downgraded by Barrington Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Friday,Zacks.com reports.

DSGR has been the subject of a number of other research reports. Zacks Research lowered Distribution Solutions Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, June 11th. Weiss Ratings downgraded Distribution Solutions Group from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, July 10th. Finally, Stephens set a $35.00 price target on Distribution Solutions Group in a report on Thursday. Two research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Distribution Solutions Group has an average rating of “Reduce” and an average price target of $35.00.

Distribution Solutions Group Trading Up 0.2%

Shares of Distribution Solutions Group stock opened at $34.50 on Friday. The company has a market capitalization of $1.59 billion, a P/E ratio of 287.50 and a beta of 0.56. 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 company has a fifty day moving average of $27.65 and a 200 day moving average of $27.75. Distribution Solutions Group has a fifty-two week low of $19.02 and a fifty-two week high of $34.83.

Distribution Solutions Group (NASDAQ:DSGR) last posted its quarterly earnings results 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 for the quarter, compared to the consensus estimate of $489.30 million. Distribution Solutions Group had a net margin of 0.27% and a return on equity of 8.49%. On average, sell-side analysts anticipate that Distribution Solutions Group will post 1.31 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Distribution Solutions Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Groupe la Francaise purchased a new position in Distribution Solutions Group during the 1st quarter valued at approximately $1,222,000. Bank of America Corp DE raised its holdings in shares of Distribution Solutions Group by 22.6% during the 1st quarter. Bank of America Corp DE now owns 14,507 shares of the company’s stock worth $381,000 after acquiring an additional 2,673 shares in the last quarter. Quantinno Capital Management LP purchased a new stake in shares of Distribution Solutions Group during the 1st quarter worth approximately $361,000. Rangeley Capital LLC bought a new position in shares of Distribution Solutions Group during the 1st quarter valued at approximately $442,000. Finally, OMERS ADMINISTRATION Corp bought a new position in shares of Distribution Solutions Group during the 1st quarter valued at approximately $354,000. 91.64% of the stock is owned by institutional investors.

Key Headlines Impacting 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

Distribution Solutions Group Company Profile

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.