MSC Industrial Direct (NYSE:MSM) Shares Gap Up After Better-Than-Expected Earnings

MSC Industrial Direct Co., Inc. (NYSE:MSM)’s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $79.86, but opened at $83.90. MSC Industrial Direct shares last traded at $82.17, with a volume of 247,615 shares trading hands.

The industrial products company reported $0.86 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.13. MSC Industrial Direct had a net margin of 6.77% and a return on equity of 19.35%. The company had revenue of $928.50 million for the quarter, compared to analysts’ expectations of $904.90 million. During the same quarter in the previous year, the business posted $1.25 earnings per share. MSC Industrial Direct’s quarterly revenue was down 2.7% on a year-over-year basis.

MSC Industrial Direct Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 29th. Investors of record on Wednesday, January 15th will be given a $0.85 dividend. This represents a $3.40 annualized dividend and a yield of 4.11%. The ex-dividend date is Wednesday, January 15th. MSC Industrial Direct’s dividend payout ratio is presently 74.24%.

Wall Street Analysts Forecast Growth

MSM has been the topic of several research reports. Stephens cut shares of MSC Industrial Direct from an “overweight” rating to an “equal weight” rating and set a $85.00 price target on the stock. in a research report on Wednesday, December 4th. Robert W. Baird boosted their price objective on shares of MSC Industrial Direct from $84.00 to $91.00 and gave the company a “neutral” rating in a research report on Wednesday, October 16th. Finally, JPMorgan Chase & Co. cut their price objective on shares of MSC Industrial Direct from $87.00 to $73.00 and set a “neutral” rating on the stock in a research report on Friday, October 25th. Seven research analysts have rated the stock with a hold rating, According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $85.20.

Insider Buying and Selling

In related news, CEO Erik Gershwind sold 50,000 shares of the company’s stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $90.36, for a total value of $4,518,000.00. Following the completion of the sale, the chief executive officer now directly owns 1,402,849 shares of the company’s stock, valued at $126,761,435.64. This represents a 3.44 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Philip Peller sold 900 shares of the company’s stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $89.07, for a total transaction of $80,163.00. Following the completion of the sale, the director now directly owns 4,044 shares of the company’s stock, valued at approximately $360,199.08. This trade represents a 18.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 18.30% of the stock is owned by insiders.

Institutional Trading of MSC Industrial Direct

Several hedge funds have recently modified their holdings of the company. JPMorgan Chase & Co. lifted its position in shares of MSC Industrial Direct by 15.8% during the third quarter. JPMorgan Chase & Co. now owns 258,646 shares of the industrial products company’s stock valued at $22,259,000 after buying an additional 35,289 shares during the last quarter. Fulcrum Equity Management acquired a new position in shares of MSC Industrial Direct during the third quarter valued at about $204,000. TD Private Client Wealth LLC increased its holdings in shares of MSC Industrial Direct by 2.0% during the third quarter. TD Private Client Wealth LLC now owns 25,675 shares of the industrial products company’s stock valued at $2,210,000 after acquiring an additional 511 shares in the last quarter. Arete Wealth Advisors LLC acquired a new position in shares of MSC Industrial Direct during the third quarter valued at about $248,000. Finally, Sunbelt Securities Inc. increased its holdings in shares of MSC Industrial Direct by 38.4% during the third quarter. Sunbelt Securities Inc. now owns 962 shares of the industrial products company’s stock valued at $83,000 after acquiring an additional 267 shares in the last quarter. 79.26% of the stock is owned by hedge funds and other institutional investors.

MSC Industrial Direct Trading Up 3.6 %

The company has a debt-to-equity ratio of 0.20, a current ratio of 1.96 and a quick ratio of 0.90. The stock has a market cap of $4.63 billion, a price-to-earnings ratio of 18.07 and a beta of 0.91. The company’s fifty day moving average price is $82.09 and its 200-day moving average price is $81.81.

MSC Industrial Direct Company Profile

MSC Industrial Direct Co, Inc, together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies.