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

MSC Industrial Direct Co., Inc. (NYSE:MSM) shares gapped up prior to trading 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 EPS for the quarter, beating 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 net margin of 6.77% and a return on equity of 19.35%. The company’s revenue was down 2.7% on a year-over-year basis. During the same period in the previous year, the business earned $1.25 earnings per share.

MSC Industrial Direct Dividend Announcement

The firm 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 $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 (DPR) is presently 74.24%.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Stephens downgraded 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. JPMorgan Chase & Co. lowered their price objective on shares of 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. 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, the stock currently has a consensus rating of “Hold” and a consensus price target of $85.20.

Insider Buying and Selling

In other MSC Industrial Direct news, Director Philip Peller sold 900 shares of the 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 in the company, 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 accessible through this link. Also, CEO Erik Gershwind sold 50,000 shares of MSC Industrial Direct stock in a transaction that occurred on Monday, November 11th. The stock was 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 owns 1,402,849 shares of the company’s stock, valued at approximately $126,761,435.64. The trade was 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 corporate insiders.

Institutional Investors Weigh In On MSC Industrial Direct

Hedge funds and other institutional investors have recently modified their holdings of the company. American Century Companies Inc. lifted its holdings in shares of MSC Industrial Direct by 85.1% in the second quarter. American Century Companies Inc. now owns 2,733,228 shares of the industrial products company’s stock valued at $216,772,000 after purchasing an additional 1,256,706 shares in the last quarter. Hotchkis & Wiley Capital Management LLC purchased a new stake in MSC Industrial Direct in the 3rd quarter valued at $12,170,000. Renaissance Technologies LLC boosted its holdings in MSC Industrial Direct by 1,715.2% during the 2nd quarter. Renaissance Technologies LLC now owns 143,400 shares of the industrial products company’s stock worth $11,373,000 after acquiring an additional 135,500 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of MSC Industrial Direct by 7.8% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,567,038 shares of the industrial products company’s stock worth $134,859,000 after acquiring an additional 113,878 shares in the last quarter. Finally, Millennium Management LLC raised its holdings in shares of MSC Industrial Direct by 458.4% in the second quarter. Millennium Management LLC now owns 119,700 shares of the industrial products company’s stock valued at $9,493,000 after purchasing an additional 98,265 shares during the last quarter. Institutional investors own 79.26% of the company’s stock.

MSC Industrial Direct Price Performance

The company has a market capitalization of $4.63 billion, a P/E ratio of 18.07 and a beta of 0.91. The business’s 50-day moving average is $82.01 and its two-hundred day moving average is $81.81. The company has a quick ratio of 0.90, a current ratio of 1.96 and a debt-to-equity ratio of 0.20.

About MSC Industrial Direct

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.