MSC Industrial Direct (NYSE:MSM) Shares Gap Up Following Strong Earnings

MSC Industrial Direct Co., Inc. (NYSE:MSM)’s stock 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.

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

MSC Industrial Direct Announces Dividend

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

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. JPMorgan Chase & Co. decreased their target price on MSC Industrial Direct from $87.00 to $73.00 and set a “neutral” rating for the company in a research report on Friday, October 25th. Stephens lowered shares of MSC Industrial Direct from an “overweight” rating to an “equal weight” rating and set a $85.00 price objective for the company. in a research note on Wednesday, December 4th. Finally, Robert W. Baird raised their target price 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. Seven investment analysts have rated the stock with a hold rating, According to MarketBeat.com, MSC Industrial Direct presently has an average rating of “Hold” and a consensus price target of $85.20.

Insider Buying and Selling

In related news, Director Philip Peller sold 900 shares of MSC Industrial Direct stock in a transaction that occurred 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 completion of the sale, the director now directly owns 4,044 shares in the company, valued at $360,199.08. This trade represents a 18.20 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Erik Gershwind sold 50,000 shares of the 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 transaction, the chief executive officer now directly owns 1,402,849 shares in the company, valued at $126,761,435.64. This 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 currently owned by company insiders.

Hedge Funds Weigh In On MSC Industrial Direct

A number of institutional investors have recently bought and sold shares of MSM. Advisors Asset Management Inc. increased its holdings in shares of MSC Industrial Direct by 8,289.7% during the 3rd quarter. Advisors Asset Management Inc. now owns 17,031 shares of the industrial products company’s stock valued at $1,466,000 after purchasing an additional 16,828 shares in the last quarter. Barclays PLC lifted its position in shares of MSC Industrial Direct by 36.9% during the third quarter. Barclays PLC now owns 25,490 shares of the industrial products company’s stock worth $2,195,000 after purchasing an additional 6,864 shares in the last quarter. Pathstone Holdings LLC boosted its position in MSC Industrial Direct by 36.4% in the 3rd quarter. Pathstone Holdings LLC now owns 23,114 shares of the industrial products company’s stock valued at $1,989,000 after buying an additional 6,172 shares during the period. XTX Topco Ltd boosted its holdings in MSC Industrial Direct by 398.1% in the third quarter. XTX Topco Ltd now owns 15,860 shares of the industrial products company’s stock valued at $1,365,000 after purchasing an additional 12,676 shares during the period. Finally, American Century Companies Inc. boosted its stake in shares of MSC Industrial Direct by 85.1% in the 2nd quarter. American Century Companies Inc. now owns 2,733,228 shares of the industrial products company’s stock valued at $216,772,000 after buying an additional 1,256,706 shares during the period. 79.26% of the stock is owned by hedge funds and other institutional investors.

MSC Industrial Direct Stock Up 2.9 %

The company has a current ratio of 1.96, a quick ratio of 0.90 and a debt-to-equity ratio of 0.20. The firm’s fifty day simple moving average is $82.00 and its 200 day simple moving average is $81.80. The company has a market cap of $4.59 billion, a price-to-earnings ratio of 17.94 and a beta of 0.91.

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.