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

MSC Industrial Direct Co., Inc. (NYSE:MSM)’s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. 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 changing hands.

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

MSC Industrial Direct Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 29th. Investors of record on Wednesday, January 15th will be paid a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a dividend yield of 4.14%. The ex-dividend date is Wednesday, January 15th. MSC Industrial Direct’s payout ratio is 74.24%.

Analyst Ratings Changes

MSM has been the subject of several recent analyst reports. JPMorgan Chase & Co. lowered their target price on shares of MSC Industrial Direct from $87.00 to $73.00 and set a “neutral” rating for the company in a research note on Friday, October 25th. Stephens lowered MSC Industrial Direct from an “overweight” rating to an “equal weight” rating and set a $85.00 target price for the company. in a research note on Wednesday, December 4th. Finally, Robert W. Baird raised their price target on MSC Industrial Direct from $84.00 to $91.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 16th. Seven analysts have rated the stock with a hold rating, Based on data from MarketBeat, MSC Industrial Direct presently has a consensus rating of “Hold” and a consensus price target of $85.20.

Insider Buying and Selling at MSC Industrial Direct

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

Institutional Investors Weigh In On MSC Industrial Direct

Several hedge funds have recently modified their holdings of MSM. JPMorgan Chase & Co. grew its position in MSC Industrial Direct by 15.8% in the third quarter. JPMorgan Chase & Co. now owns 258,646 shares of the industrial products company’s stock valued at $22,259,000 after acquiring an additional 35,289 shares in the last quarter. Fulcrum Equity Management acquired a new position in MSC Industrial Direct in the 3rd quarter worth $204,000. TD Private Client Wealth LLC boosted its position in MSC Industrial Direct by 2.0% in the 3rd quarter. TD Private Client Wealth LLC now owns 25,675 shares of the industrial products company’s stock valued at $2,210,000 after buying an additional 511 shares during the last quarter. Arete Wealth Advisors LLC acquired a new stake in shares of MSC Industrial Direct during the third quarter valued at about $248,000. Finally, Sunbelt Securities Inc. increased its position 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 worth $83,000 after acquiring an additional 267 shares during the last quarter. 79.26% of the stock is currently owned by hedge funds and other institutional investors.

MSC Industrial Direct Stock Performance

The firm has a market capitalization of $4.59 billion, a PE ratio of 17.94 and a beta of 0.91. 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 50-day moving average price of $82.00 and a 200-day moving average price of $81.80.

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.