DNOW Finalizes Merger with MRC Global
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2025
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Source: Newsfilter
Acquisition Announcement: DNOW Inc. has completed its acquisition of MRC Global, enhancing its position as a leading solutions provider in the energy and industrial markets. Each share of MRC Global's stock was converted into DNOW shares, and MRC Global will no longer be traded on the NYSE.
Strategic Benefits: The merger is expected to provide significant strategic, operational, and financial benefits, including diverse growth opportunities, an expanded geographic footprint, and substantial cash flow generation for investments and acquisitions.
Operational Synergies: DNOW anticipates generating $70 million in annual cost synergies within three years through improved operational efficiencies and a streamlined capital structure, allowing for better capital allocation.
Forward-Looking Statements: The announcement includes forward-looking statements regarding future performance and potential risks, emphasizing the uncertainties involved in the integration of MRC Global and the overall market conditions affecting DNOW's business.
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Analyst Views on DNOW
Wall Street analysts forecast DNOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DNOW is 17.67 USD with a low forecast of 16.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 15.070
Low
16.00
Averages
17.67
High
19.00
Current: 15.070
Low
16.00
Averages
17.67
High
19.00
About DNOW
DNOW Inc. is a premier energy and industrial solutions provider. It supplies energy and industrial products and packaged, engineered process and production equipment. The Company is a distributor of pipe, valves, fittings (PVF), pumps and fabricated equipment. Its products and services include air compressors and blowers; artificial lift; drilling and completions; electrical; industrial and facilities supplies; instrumentation and measurement; paint and coatings; PVF; power generation and transmission; process and production equipment; pumps and packages; safety and PPE, and tools and welding equipment. Its DigitalNOW platform and supply chain services address intricate operational challenges, bolstered with support from procurement and inventory management to field services. It serves a range of markets, including upstream, midstream and downstream oil and gas, chemical processing, mining, municipal water, manufacturing, engineering, energy evolution and renewables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DNOW and Three Other Stocks Show Rising Cash Flows
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- Oil and Gas Industry Outlook: Riley Exploration Permian's earnings per share estimates for 2025 and 2026 have been raised by 5.0% and 14.2%, respectively, showcasing the success of its drilling activities in Texas and New Mexico, thereby strengthening its position in the oil and gas market.
- Technological Innovation: RF Industries' fiscal 2026 earnings estimate was revised up by 22.9% in the past week, indicating strong demand in the telecom and data communications markets, further solidifying its leadership in global connectivity solutions.
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DNOW Institutional Holdings Exceed 60%, Significantly Influencing Share Price
- Institutional Ownership Analysis: DNOW's institutional investors hold over 60% of the shares, indicating significant influence over the company's stock price and decision-making, reflecting professional investors' confidence in the firm.
- Major Shareholder Structure: The largest shareholder is BlackRock with a 9.5% stake, followed by Vanguard at 6.3%, highlighting the importance of large institutions in DNOW, which may also introduce greater market volatility risks.
- Insider Ownership Situation: Company insiders own shares worth approximately $29 million, indicating alignment of interests between management and shareholders, which can enhance market trust in the company.
- Public Ownership Proportion: The general public holds 39% of the shares, which, while not directly influencing decisions, still exerts a degree of sway over company operations, showcasing a broad investor base.
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