Zacks Investment Research lowered shares of MSC Industrial Direct (NYSE:MSM) from a hold rating to a sell rating in a research note issued to investors on Thursday.
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 analysts have also issued reports about the company. Gordon Haskett assumed coverage on MSC Industrial Direct in a research report on Friday, October 12th. They set a buy rating on the stock. Jefferies Financial Group assumed coverage on MSC Industrial Direct in a research report on Monday, January 7th. They set a buy rating and a $92.00 target price on the stock. Wells Fargo & Co dropped their target price on MSC Industrial Direct from $87.00 to $85.00 and set a market perform rating on the stock in a research report on Friday, December 21st. Finally, Buckingham Research assumed coverage on MSC Industrial Direct in a research report on Friday, October 12th. They set a neutral rating and a $89.00 target price on the stock. One analyst has rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $97.73.
Shares of MSC Industrial Direct stock opened at $79.08 on Thursday. MSC Industrial Direct has a twelve month low of $73.28 and a twelve month high of $99.74. The firm has a market capitalization of $4.29 billion, a P/E ratio of 15.57, a PEG ratio of 1.04 and a beta of 0.77. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.28 and a current ratio of 2.37.
MSC Industrial Direct (NYSE:MSM) last issued its quarterly earnings data on Wednesday, January 9th. The industrial products company reported $1.33 EPS for the quarter, topping the Zacks’ consensus estimate of $1.32 by $0.01. The company had revenue of $831.60 million for the quarter, compared to analysts’ expectations of $830.60 million. MSC Industrial Direct had a return on equity of 21.97% and a net margin of 10.53%. The firm’s quarterly revenue was up 8.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.05 earnings per share. As a group, equities research analysts predict that MSC Industrial Direct will post 5.9 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 22nd. Stockholders of record on Tuesday, January 8th will be given a dividend of $0.63 per share. The ex-dividend date of this dividend is Monday, January 7th. This represents a $2.52 annualized dividend and a dividend yield of 3.19%. MSC Industrial Direct’s dividend payout ratio is presently 49.61%.
In other news, SVP David Wright sold 5,404 shares of the business’s stock in a transaction that occurred on Thursday, November 15th. The stock was sold at an average price of $89.00, for a total transaction of $480,956.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Rustom Jilla sold 2,500 shares of the business’s stock in a transaction that occurred on Wednesday, November 7th. The stock was sold at an average price of $87.50, for a total value of $218,750.00. The disclosure for this sale can be found here. Insiders own 27.96% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in MSM. Macquarie Group Ltd. acquired a new stake in MSC Industrial Direct in the second quarter worth approximately $110,000. Twin Tree Management LP acquired a new stake in MSC Industrial Direct in the third quarter worth approximately $126,000. Cerebellum GP LLC lifted its position in MSC Industrial Direct by 37.6% in the fourth quarter. Cerebellum GP LLC now owns 2,760 shares of the industrial products company’s stock worth $212,000 after purchasing an additional 754 shares during the period. Nomura Holdings Inc. acquired a new stake in MSC Industrial Direct in the second quarter worth approximately $219,000. Finally, AMP Capital Investors Ltd acquired a new stake in MSC Industrial Direct in the second quarter worth approximately $331,000. Hedge funds and other institutional investors own 75.87% of the company’s stock.
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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