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

MSC Industrial Direct Co., Inc. (NYSE:MSM - Get Free Report) gapped up before the market opened 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 traded.

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 for the quarter, compared to analyst estimates of $904.90 million. MSC Industrial Direct had a return on equity of 19.35% and a net margin of 6.77%. The business's quarterly revenue was down 2.7% on a year-over-year basis. During the same quarter last year, the company earned $1.25 EPS.

MSC Industrial Direct Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 29th. Stockholders of record on Wednesday, January 15th will be given a dividend of $0.85 per share. This represents a $3.40 dividend on an annualized basis and a dividend yield of 4.11%. The ex-dividend date of this dividend is Wednesday, January 15th. MSC Industrial Direct's dividend payout ratio (DPR) is currently 74.24%.

Analyst Upgrades and Downgrades

MSM has been the topic of several research analyst reports. Robert W. Baird lifted their price target on MSC Industrial Direct from $84.00 to $91.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 16th. JPMorgan Chase & Co. decreased their target price on shares of MSC Industrial Direct from $87.00 to $73.00 and set a "neutral" rating for the company in a research note on Friday, October 25th. Finally, Stephens cut MSC Industrial Direct from an "overweight" rating to an "equal weight" rating and set a $85.00 price target on the stock. in a research report on Wednesday, December 4th. Seven investment analysts have rated the stock with a hold rating, According to MarketBeat.com, MSC Industrial Direct currently has an average rating of "Hold" and an average price target of $85.20.

Insider Buying and Selling at MSC Industrial Direct

In other MSC Industrial Direct news, Director Philip Peller sold 900 shares of the business's stock in a transaction on Wednesday, November 13th. The stock was sold at an average price of $89.07, for a total transaction of $80,163.00. Following the sale, the director now directly owns 4,044 shares in the company, valued at approximately $360,199.08. The trade was a 18.20 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Erik Gershwind sold 50,000 shares of the firm's stock in a transaction 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 transaction, the chief executive officer now owns 1,402,849 shares of the company's stock, valued at approximately $126,761,435.64. This represents a 3.44 % decrease in their position. The disclosure for this sale can be found here. 18.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of MSM. JPMorgan Chase & Co. lifted its stake in shares of MSC Industrial Direct by 15.8% during the third quarter. JPMorgan Chase & Co. now owns 258,646 shares of the industrial products company's stock valued at $22,259,000 after buying an additional 35,289 shares during the period. Fulcrum Equity Management purchased a new position in shares of MSC Industrial Direct during the 3rd quarter worth $204,000. TD Private Client Wealth LLC boosted its holdings in shares of MSC Industrial Direct by 2.0% during the third quarter. TD Private Client Wealth LLC now owns 25,675 shares of the industrial products company's stock worth $2,210,000 after purchasing an additional 511 shares during the last quarter. Arete Wealth Advisors LLC purchased a new stake in shares of MSC Industrial Direct in the third quarter valued at $248,000. Finally, Sunbelt Securities Inc. increased its stake in MSC Industrial Direct by 38.4% in the third quarter. Sunbelt Securities Inc. now owns 962 shares of the industrial products company's stock valued at $83,000 after purchasing an additional 267 shares during the last quarter. 79.26% of the stock is owned by hedge funds and other institutional investors.

MSC Industrial Direct Price Performance

The company has a 50 day moving average of $82.01 and a 200 day moving average of $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. The stock has a market capitalization of $4.63 billion, a price-to-earnings ratio of 18.07 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.