Zacks Investment Research cut shares of MSC Industrial Direct (NYSE:MSM) from a hold rating to a sell rating in a research note released on Thursday morning.
According to Zacks, “MSC Industrial Direct Co., Inc. is one of the premier distributors of Metalworking and Maintenance, Repair and Operations (MRO) supplies to industrial customers throughout the United States. MSC distributes approximately 590,000 industrial products from approximately 3,000 suppliers to approximately 350,000 customers. MSC reaches its customers through a combination of approximately 27 million direct-mail catalogs and CD-ROMs, 96 branch sales offices, 927 sales people, the Internet and associations with some of the world’s most prominent B2B e-commerce portals. “
Other equities research analysts have also recently issued reports about the stock. Gordon Haskett started coverage on shares of MSC Industrial Direct in a report on Friday, October 12th. They set a buy rating for the company. Jefferies Financial Group initiated coverage on shares of MSC Industrial Direct in a research note on Monday, January 7th. They issued a buy rating and a $92.00 target price for the company. Wells Fargo & Co reduced their target price on shares of MSC Industrial Direct from $87.00 to $85.00 and set a market perform rating for the company in a research note on Friday, December 21st. Finally, Buckingham Research initiated coverage on shares of MSC Industrial Direct in a research note on Friday, October 12th. They issued a neutral rating and a $89.00 target price for the company. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and five have assigned a buy rating to the stock. The stock presently has an average rating of Hold and a consensus price target of $97.73.
MSM stock opened at $79.08 on Thursday. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.37 and a quick ratio of 1.28. MSC Industrial Direct has a 52-week low of $73.28 and a 52-week high of $99.74. The stock has a market cap of $4.29 billion, a price-to-earnings ratio of 15.57, a PEG ratio of 1.04 and a beta of 0.77.
MSC Industrial Direct (NYSE:MSM) last released its quarterly earnings results on Wednesday, January 9th. The industrial products company reported $1.33 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.32 by $0.01. MSC Industrial Direct had a net margin of 10.53% and a return on equity of 21.97%. The company had revenue of $831.60 million during the quarter, compared to analysts’ expectations of $830.60 million. During the same period in the prior year, the company earned $1.05 earnings per share. The business’s quarterly revenue was up 8.2% compared to the same quarter last year. As a group, equities analysts anticipate that MSC Industrial Direct will post 5.9 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, January 22nd. Investors of record on Tuesday, January 8th will be paid a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 3.19%. The ex-dividend date is Monday, January 7th. MSC Industrial Direct’s payout ratio is presently 49.61%.
In related news, CFO Rustom Jilla sold 2,500 shares of the stock in a transaction dated Wednesday, November 7th. The shares were sold at an average price of $87.50, for a total value of $218,750.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP David Wright sold 5,404 shares of the stock in a transaction dated Thursday, November 15th. The stock was sold at an average price of $89.00, for a total transaction of $480,956.00. The disclosure for this sale can be found here. 27.96% of the stock is currently owned by company insiders.
A number of large investors have recently bought and sold shares of MSM. BlackRock Inc. increased its position in shares of MSC Industrial Direct by 3.6% during the second quarter. BlackRock Inc. now owns 4,008,426 shares of the industrial products company’s stock worth $340,115,000 after purchasing an additional 140,430 shares in the last quarter. Janus Henderson Group PLC increased its position in shares of MSC Industrial Direct by 76.0% during the second quarter. Janus Henderson Group PLC now owns 33,800 shares of the industrial products company’s stock worth $2,868,000 after purchasing an additional 14,600 shares in the last quarter. Great West Life Assurance Co. Can increased its position in shares of MSC Industrial Direct by 3.3% during the second quarter. Great West Life Assurance Co. Can now owns 26,729 shares of the industrial products company’s stock worth $2,268,000 after purchasing an additional 844 shares in the last quarter. Oregon Public Employees Retirement Fund increased its position in shares of MSC Industrial Direct by 4.0% during the second quarter. Oregon Public Employees Retirement Fund now owns 17,590 shares of the industrial products company’s stock worth $1,493,000 after purchasing an additional 674 shares in the last quarter. Finally, AMP Capital Investors Ltd purchased a new stake in shares of MSC Industrial Direct during the second quarter worth approximately $331,000. 75.87% of the stock is owned by hedge funds and other institutional investors.
About MSC Industrial Direct
MSC Industrial Direct Co, Inc, together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, and the United Kingdom. The company's MRO products comprise 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.
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