This Fund Exited a $5 Million DNOW Stake Last Quarter. The Stock Has Fallen 12% This Year

2 hours ago 1

Jonathan Ponciano, The Motley Fool

Mon, March 23, 2026 astatine 12:04 PM CDT 4 min read

On February 17, 2026, Quantedge Capital reported selling retired of DNOW (NYSE:DNOW), unloading 351,310 shares antecedently worthy $5.36 million.

According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, Quantedge Capital reported a implicit merchantability of its 351,310-share presumption successful DNOW. The quarter-end presumption worth for DNOW declined by $5.36 cardinal arsenic a result.

Quantedge Capital sold retired its DNOW stake, which antecedently represented 2.9% of AUM.
Top holdings aft the filing:
- NYSE:PVH: $31.50 cardinal (15.0% of AUM)
- NYSE:HLF: $29.00 cardinal (13.8% of AUM)
- NYSE:BWA: $16.37 cardinal (7.8% of AUM)
- NYSE:ADNT: $14.73 cardinal (7.0% of AUM)
- NYSE:YELP: $7.31 cardinal (3.5% of AUM)
As of Monday, shares of DNOW were priced astatine $11.79, down astir 27% implicit the past twelvemonth and importantly underperforming the S&P 500, which is alternatively up astir 15% successful the aforesaid period.

Metric

Value

Price (as of Monday)	$11.79
Market capitalization	$2.2 billion
Revenue (TTM)	$2.8 billion
Net income (TTM)	$89 million

DNOW offers a wide portfolio of vigor and concern products, including pipes, valves, fittings, instrumentation, information supplies, and archetypal instrumentality for downstream, midstream, and upstream sectors.
The institution generates gross chiefly done the organisation of maintenance, repair, and operating supplies, arsenic good arsenic proviso concatenation and materials absorption solutions for vigor and concern clients.
It serves a diversified lawsuit basal comprising drilling contractors, lipid and state companies, refineries, petrochemical and chemic processors, utilities, and concern manufacturers crossed the United States, Canada, and planetary markets.

DNOW is simply a starring distributor of vigor and concern products, leveraging an extended web of locations to enactment customers crossed the vigor worth chain. The company’s strategy centers connected delivering integrated proviso concatenation solutions and value-added services tailored to the operational needs of large manufacture players. Its scale, merchandise breadth, and established lawsuit relationships supply a competitory vantage successful the lipid and state instrumentality and services sector.

DNOW is simply a spot of a mixed container close now. On 1 hand, it’s a existent concern with scale, pulling successful astir $2.8 cardinal successful gross past twelvemonth and generating implicit $200 cardinal successful adjusted EBITDA. But the institution inactive posted a nett nonaccomplishment of $89 million, mostly tied to deal-related costs and integration issues aft the MRC Global acquisition. And the marketplace seems to beryllium focusing much connected those headaches than the semipermanent upside. The banal has been anemic implicit the past twelvemonth and is already down 12% successful 2026, which suggests investors aren’t afloat buying the turnaround communicative yet.

All of this makes Quantedge’s exit look beauteous well-timed. In a connection alongside earnings, CEO David Cherechinsky pointed to the firm’s 5th consecutive twelvemonth of gross maturation and highest adjusted EBITDA connected record, but helium acknowledged the challenges related to the U.S. MRC Global ERP strategy modulation that went unrecorded successful the 3rd quarter. “While these complexities person created near-term obstacles, we are actively addressing them and stay focused connected positioning the concern for semipermanent growth,” helium added.

When you comparison this to the remainder of Quantedge’s portfolio, which leans much toward steadier, cash-generating names, DNOW sticks retired arsenic higher risk. It’s tied to vigor cycles and present has added execution hazard connected top. That each makes it a small clearer wherefore the money mightiness person wanted to measurement out erstwhile it did.

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