DNOW Inc. Under Investigation for Possible Securities Law Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy DNOW?
Source: Businesswire
- Financial Performance Decline: DNOW's Q4 2025 financial results released on February 20, 2026, revealed a decline attributed to ongoing Enterprise Resource Planning (ERP) challenges, with management admitting that the ERP design architecture is causing inefficiencies in core processes, leading to continued negative operational and financial impacts.
- Guidance Delay: The company announced a delay in sequential and full-year guidance due to persistent ERP implementation challenges, which could undermine investor confidence in DNOW's future performance and exacerbate market uncertainty.
- Significant Stock Price Drop: Following the earnings report, DNOW's stock price fell by $3.13, or 19.1%, closing at $13.23 per share, indicating a severe impact on investor interests and reflecting market concerns regarding the company's financial health.
- Legal Investigation Initiated: Glancy Prongay Wolke & Rotter LLP has commenced an investigation into DNOW to assess potential violations of federal securities laws, potentially providing avenues for affected investors to pursue claims, highlighting the legal risks that could have far-reaching implications for the company's future operations.
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Analyst Views on DNOW
Wall Street analysts forecast DNOW stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 11.680
Low
16.00
Averages
17.67
High
19.00
Current: 11.680
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.
Pomerantz LLP Investigates DNOW for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating claims against DNOW Inc. regarding potential securities fraud, which could undermine investor confidence and lead to stock price volatility.
- Financial Report Impact: On February 20, 2026, DNOW reported its Q4 and full-year 2025 results, with the CEO acknowledging challenges related to the U.S. MRC Global ERP system transition, indicating short-term obstacles that may affect future performance.
- Stock Price Plunge: Following the financial report, DNOW's stock price fell by $3.13, or 19.13%, closing at $13.23 per share, reflecting market concerns about the company's outlook.
- Potential Legal Consequences: Pomerantz LLP, a prominent securities class action firm, may pursue significant damages if the investigation confirms wrongdoing, potentially impacting DNOW's market position and investor trust.
See More
DNOW Inc. Under Investigation for Possible Securities Law Violations
- Financial Performance Decline: DNOW's Q4 2025 financial results released on February 20, 2026, revealed a decline attributed to ongoing Enterprise Resource Planning (ERP) challenges, with management admitting that the ERP design architecture is causing inefficiencies in core processes, leading to continued negative operational and financial impacts.
- Guidance Delay: The company announced a delay in sequential and full-year guidance due to persistent ERP implementation challenges, which could undermine investor confidence in DNOW's future performance and exacerbate market uncertainty.
- Significant Stock Price Drop: Following the earnings report, DNOW's stock price fell by $3.13, or 19.1%, closing at $13.23 per share, indicating a severe impact on investor interests and reflecting market concerns regarding the company's financial health.
- Legal Investigation Initiated: Glancy Prongay Wolke & Rotter LLP has commenced an investigation into DNOW to assess potential violations of federal securities laws, potentially providing avenues for affected investors to pursue claims, highlighting the legal risks that could have far-reaching implications for the company's future operations.
See More
Rosen Law Firm Investigates DNOW Securities Fraud Claims
- Securities Fraud Investigation: The Rosen Law Firm has announced an investigation into DNOW Inc. due to potential misleading business information issued to investors, which may lead to significant securities claims.
- Stock Price Plunge: On February 20, 2026, DNOW reported disappointing Q4 2025 results, revealing substantial losses that missed Wall Street expectations, causing a 19.1% drop in stock price, severely impacting investor confidence.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for affected investors, with no out-of-pocket fees required, thereby lowering the barrier for participation in the lawsuit.
- Firm's Track Record: The Rosen Law Firm is renowned for its success in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
Rosen Law Firm Investigates DNOW Securities Claims
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into DNOW Inc. (NYSE: DNOW) due to potential issuance of materially misleading business information, exposing investors to possible securities claims.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after the company reported disappointing fourth-quarter 2025 results, which missed Wall Street expectations, exacerbating investor loss risks.
- Class Action Preparation: The firm is preparing a class action to seek compensation for affected investors, allowing participation without any upfront costs, thus lowering the barrier for investors to join the lawsuit.
- Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
DNOW Shares Plunge 19% Following Disappointing Quarterly Earnings Report
- Earnings Miss: DNOW's fourth quarter and full-year 2025 results revealed nearly doubled revenue at $959 million year-over-year, yet fell short of analyst expectations of $988 million, highlighting integration challenges with MRC Global.
- Declining Net Income: Despite significant revenue growth, DNOW reported a net income of $23 million, or $0.15 per share, which is a decline from $27 million in the same quarter last year, indicating pressure on profitability.
- Integration Challenges: CEO David Cerechinsky acknowledged that the legacy ERP system from MRC Global has created near-term obstacles, and while the company is actively addressing these issues, they may impact long-term growth prospects.
- Market Reaction: Following the disappointing earnings report, DNOW's stock plummeted by 19.16% to $13.22, reflecting heightened investor concerns regarding the company's ability to effectively integrate MRC Global and its future outlook.
See More
DNOW Reports Revenue Surge but Stock Plummets
- Significant Revenue Growth: DNOW's fourth-quarter revenue nearly doubled year-over-year to $959 million from $571 million, primarily driven by the acquisition of MRC Global last November, indicating initial success from its acquisition strategy.
- Declining Profitability: Despite the substantial revenue increase, DNOW reported a net income of $23 million, or $0.15 per share, down from $27 million in the same quarter last year, reflecting challenges in integrating the new business.
- Negative Market Reaction: DNOW's stock plummeted over 19% on Friday due to quarterly results that missed analyst expectations, highlighting growing investor concerns about the company's ability to integrate MRC Global effectively, which may impact its short-term market performance.
- Management's Response Strategy: CEO David Cerechinsky stated that while the legacy ERP system of MRC Global has created near-term obstacles, the company is actively addressing these complexities and remains focused on positioning the business for long-term growth, demonstrating management's confidence in future prospects.
See More
Pomerantz LLP Investigates DNOW for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating claims against DNOW Inc. regarding potential securities fraud, which could undermine investor confidence and lead to stock price volatility.
- Financial Report Impact: On February 20, 2026, DNOW reported its Q4 and full-year 2025 results, with the CEO acknowledging challenges related to the U.S. MRC Global ERP system transition, indicating short-term obstacles that may affect future performance.
- Stock Price Plunge: Following the financial report, DNOW's stock price fell by $3.13, or 19.13%, closing at $13.23 per share, reflecting market concerns about the company's outlook.
- Potential Legal Consequences: Pomerantz LLP, a prominent securities class action firm, may pursue significant damages if the investigation confirms wrongdoing, potentially impacting DNOW's market position and investor trust.
See More
DNOW Inc. Under Investigation for Possible Securities Law Violations
- Financial Performance Decline: DNOW's Q4 2025 financial results released on February 20, 2026, revealed a decline attributed to ongoing Enterprise Resource Planning (ERP) challenges, with management admitting that the ERP design architecture is causing inefficiencies in core processes, leading to continued negative operational and financial impacts.
- Guidance Delay: The company announced a delay in sequential and full-year guidance due to persistent ERP implementation challenges, which could undermine investor confidence in DNOW's future performance and exacerbate market uncertainty.
- Significant Stock Price Drop: Following the earnings report, DNOW's stock price fell by $3.13, or 19.1%, closing at $13.23 per share, indicating a severe impact on investor interests and reflecting market concerns regarding the company's financial health.
- Legal Investigation Initiated: Glancy Prongay Wolke & Rotter LLP has commenced an investigation into DNOW to assess potential violations of federal securities laws, potentially providing avenues for affected investors to pursue claims, highlighting the legal risks that could have far-reaching implications for the company's future operations.
See More
Rosen Law Firm Investigates DNOW Securities Fraud Claims
- Securities Fraud Investigation: The Rosen Law Firm has announced an investigation into DNOW Inc. due to potential misleading business information issued to investors, which may lead to significant securities claims.
- Stock Price Plunge: On February 20, 2026, DNOW reported disappointing Q4 2025 results, revealing substantial losses that missed Wall Street expectations, causing a 19.1% drop in stock price, severely impacting investor confidence.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for affected investors, with no out-of-pocket fees required, thereby lowering the barrier for participation in the lawsuit.
- Firm's Track Record: The Rosen Law Firm is renowned for its success in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
Rosen Law Firm Investigates DNOW Securities Claims
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into DNOW Inc. (NYSE: DNOW) due to potential issuance of materially misleading business information, exposing investors to possible securities claims.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after the company reported disappointing fourth-quarter 2025 results, which missed Wall Street expectations, exacerbating investor loss risks.
- Class Action Preparation: The firm is preparing a class action to seek compensation for affected investors, allowing participation without any upfront costs, thus lowering the barrier for investors to join the lawsuit.
- Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
DNOW Shares Plunge 19% Following Disappointing Quarterly Earnings Report
- Earnings Miss: DNOW's fourth quarter and full-year 2025 results revealed nearly doubled revenue at $959 million year-over-year, yet fell short of analyst expectations of $988 million, highlighting integration challenges with MRC Global.
- Declining Net Income: Despite significant revenue growth, DNOW reported a net income of $23 million, or $0.15 per share, which is a decline from $27 million in the same quarter last year, indicating pressure on profitability.
- Integration Challenges: CEO David Cerechinsky acknowledged that the legacy ERP system from MRC Global has created near-term obstacles, and while the company is actively addressing these issues, they may impact long-term growth prospects.
- Market Reaction: Following the disappointing earnings report, DNOW's stock plummeted by 19.16% to $13.22, reflecting heightened investor concerns regarding the company's ability to effectively integrate MRC Global and its future outlook.
See More
DNOW Reports Revenue Surge but Stock Plummets
- Significant Revenue Growth: DNOW's fourth-quarter revenue nearly doubled year-over-year to $959 million from $571 million, primarily driven by the acquisition of MRC Global last November, indicating initial success from its acquisition strategy.
- Declining Profitability: Despite the substantial revenue increase, DNOW reported a net income of $23 million, or $0.15 per share, down from $27 million in the same quarter last year, reflecting challenges in integrating the new business.
- Negative Market Reaction: DNOW's stock plummeted over 19% on Friday due to quarterly results that missed analyst expectations, highlighting growing investor concerns about the company's ability to integrate MRC Global effectively, which may impact its short-term market performance.
- Management's Response Strategy: CEO David Cerechinsky stated that while the legacy ERP system of MRC Global has created near-term obstacles, the company is actively addressing these complexities and remains focused on positioning the business for long-term growth, demonstrating management's confidence in future prospects.
See More
