MSC Industrial Direct Company, Inc. (NYSE:MSM) Announces $0.85 Quarterly Dividend

MSC Industrial Direct Company, Inc. (NYSE:MSM) declared a quarterly dividend on Wednesday, June 25th, RTT News reports. Stockholders of record on Wednesday, July 9th will be paid a dividend of 0.85 per share by the industrial products company on Wednesday, July 23rd. This represents a $3.40 dividend on an annualized basis and a dividend yield of 4.01%. The ex-dividend date of this dividend is Wednesday, July 9th.

MSC Industrial Direct has a dividend payout ratio of 87.0% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Analysts expect MSC Industrial Direct to earn $4.05 per share next year, which means the company should continue to be able to cover its $3.40 annual dividend with an expected future payout ratio of 84.0%.

MSC Industrial Direct Stock Up 3.6%

Shares of MSM stock opened at $84.83 on Friday. The stock’s fifty day moving average price is $79.69 and its 200 day moving average price is $79.27. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.92 and a quick ratio of 0.88. MSC Industrial Direct has a 1-year low of $68.10 and a 1-year high of $90.81. The company has a market cap of $4.73 billion, a price-to-earnings ratio of 22.38 and a beta of 0.87.

MSC Industrial Direct (NYSE:MSM) last issued its quarterly earnings results on Thursday, April 3rd. The industrial products company reported $0.72 earnings per share for the quarter, topping analysts’ consensus estimates of $0.68 by $0.04. The business had revenue of $891.70 million for the quarter, compared to analyst estimates of $908.30 million. MSC Industrial Direct had a return on equity of 16.06% and a net margin of 5.69%. The company’s revenue was down 4.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.18 earnings per share. On average, research analysts expect that MSC Industrial Direct will post 3.57 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Mitchell Jacobson acquired 27,642 shares of MSC Industrial Direct stock in a transaction that occurred on Tuesday, April 8th. The shares were purchased at an average price of $69.77 per share, for a total transaction of $1,928,582.34. Following the completion of the transaction, the director now owns 1,951,725 shares in the company, valued at $136,171,853.25. This represents a 1.44% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 18.30% of the stock is currently owned by company insiders.

Institutional Trading of MSC Industrial Direct

Several large investors have recently added to or reduced their stakes in MSM. Royal Bank of Canada grew its holdings in shares of MSC Industrial Direct by 4.8% in the first quarter. Royal Bank of Canada now owns 46,990 shares of the industrial products company’s stock valued at $3,650,000 after purchasing an additional 2,164 shares during the period. Empowered Funds LLC acquired a new stake in shares of MSC Industrial Direct during the 1st quarter worth approximately $816,000. Integrated Wealth Concepts LLC purchased a new stake in shares of MSC Industrial Direct during the 1st quarter valued at approximately $455,000. United Services Automobile Association acquired a new position in MSC Industrial Direct in the first quarter valued at approximately $229,000. Finally, NewEdge Advisors LLC grew its position in MSC Industrial Direct by 79.9% in the first quarter. NewEdge Advisors LLC now owns 750 shares of the industrial products company’s stock worth $58,000 after acquiring an additional 333 shares during the period. 79.26% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts have commented on MSM shares. Wolfe Research raised MSC Industrial Direct to a “strong-buy” rating in a research report on Sunday, April 6th. Robert W. Baird decreased their target price on MSC Industrial Direct from $90.00 to $84.00 and set a “neutral” rating for the company in a report on Friday, April 4th. JPMorgan Chase & Co. upgraded shares of MSC Industrial Direct from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $73.00 to $89.00 in a report on Tuesday, May 27th. Industrial Alliance Securities set a $89.00 target price on MSC Industrial Direct in a report on Tuesday, May 27th. Finally, Loop Capital reduced their price target on MSC Industrial Direct from $83.00 to $74.00 and set a “hold” rating for the company in a research report on Friday, April 4th. Three equities research analysts have rated the stock with a hold rating, one has given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $86.00.

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.