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

MSC Industrial Direct Co., Inc. (NYSE:MSM)’s stock price gapped up prior to trading 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 trading 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 net margin of 6.77% and a return on equity of 19.35%. The firm had revenue of $928.50 million during the quarter, compared to the consensus estimate of $904.90 million. During the same period in the prior year, the firm earned $1.25 EPS. The company’s revenue was down 2.7% compared to the same quarter last year.

MSC Industrial Direct Announces Dividend

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

Wall Street Analyst Weigh In

MSM has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. reduced their target price on MSC Industrial Direct from $87.00 to $73.00 and set a “neutral” rating for the company in a 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 target price on the stock. in a report on Wednesday, December 4th. Finally, Robert W. Baird raised their price target on shares of MSC Industrial Direct from $84.00 to $91.00 and gave the company a “neutral” rating in a report on Wednesday, October 16th. Seven analysts have rated the stock with a hold rating, According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $85.20.

Insiders Place Their Bets

In other news, CEO Erik Gershwind sold 50,000 shares of the business’s stock in a transaction that occurred on 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 in the company, valued at approximately $126,761,435.64. The trade was a 3.44 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Philip Peller sold 900 shares of the stock in a transaction on Wednesday, November 13th. The shares were sold at an average price of $89.07, for a total transaction of $80,163.00. Following the transaction, the director now directly owns 4,044 shares in the company, valued at approximately $360,199.08. This represents a 18.20 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 18.30% of the company’s stock.

Institutional Trading of MSC Industrial Direct

Several institutional investors have recently added to or reduced their stakes in the business. V Square Quantitative Management LLC purchased a new position in shares of MSC Industrial Direct in the third quarter worth about $26,000. UMB Bank n.a. increased its stake in MSC Industrial Direct by 442.1% in the 3rd quarter. UMB Bank n.a. now owns 309 shares of the industrial products company’s stock worth $27,000 after purchasing an additional 252 shares during the period. Quest Partners LLC increased its stake in MSC Industrial Direct by 35,300.0% in the 2nd quarter. Quest Partners LLC now owns 354 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 353 shares during the period. Quent Capital LLC lifted its position in MSC Industrial Direct by 57.0% in the third quarter. Quent Capital LLC now owns 372 shares of the industrial products company’s stock valued at $32,000 after purchasing an additional 135 shares during the last quarter. Finally, First Horizon Advisors Inc. boosted its stake in shares of MSC Industrial Direct by 53.0% during the third quarter. First Horizon Advisors Inc. now owns 407 shares of the industrial products company’s stock valued at $35,000 after purchasing an additional 141 shares during the period. 79.26% of the stock is currently owned by hedge funds and other institutional investors.

MSC Industrial Direct Price Performance

The company has a quick ratio of 0.90, a current ratio of 1.96 and a debt-to-equity ratio of 0.20. The firm’s fifty day moving average price is $82.01 and its 200-day moving average price is $81.81. The stock has a market cap of $4.63 billion, a P/E ratio of 18.07 and a beta of 0.91.

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.