MSC Industrial Direct (MSM) Cut to “Sell” at Zacks Investment Research

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 Wednesday.

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. “

Several other research firms have also commented on MSM. Stephens lowered MSC Industrial Direct from an overweight rating to an equal weight rating and set a $92.00 target price on the stock. in a report on Friday, February 8th. Buckingham Research set a $83.00 price objective on MSC Industrial Direct and gave the company a hold rating in a report on Thursday, January 10th. Wells Fargo & Co dropped their price objective on MSC Industrial Direct from $87.00 to $85.00 and set a market perform rating on the stock in a report on Friday, December 21st. Finally, Jefferies Financial Group initiated coverage on MSC Industrial Direct in a report on Monday, January 7th. They issued a buy rating and a $92.00 price objective on the stock. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and four have given a buy rating to the company. MSC Industrial Direct currently has a consensus rating of Hold and an average target price of $95.55.

MSC Industrial Direct stock opened at $83.83 on Wednesday. The stock has a market cap of $4.76 billion, a P/E ratio of 15.94, a P/E/G ratio of 1.47 and a beta of 0.86. MSC Industrial Direct has a 52 week low of $73.28 and a 52 week high of $96.58. The company has a current ratio of 2.37, a quick ratio of 1.27 and a debt-to-equity ratio of 0.23.

MSC Industrial Direct (NYSE:MSM) last posted its earnings results on Wednesday, January 9th. The industrial products company reported $1.33 EPS for the quarter, topping the consensus estimate of $1.32 by $0.01. The firm had revenue of $831.60 million for the quarter, compared to analyst estimates of $830.60 million. MSC Industrial Direct had a return on equity of 21.97% and a net margin of 10.53%. MSC Industrial Direct’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same period last year, the company earned $1.05 earnings per share. Research analysts anticipate that MSC Industrial Direct will post 5.82 earnings per share for the current fiscal year.

In other news, Director Denis F. Kelly sold 1,180 shares of MSC Industrial Direct stock in a transaction that occurred on Monday, January 28th. The stock was sold at an average price of $82.18, for a total value of $96,972.40. Following the sale, the director now directly owns 9,980 shares of the company’s stock, valued at $820,156.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Charles Bonomo sold 601 shares of MSC Industrial Direct stock in a transaction that occurred on Tuesday, January 29th. The stock was sold at an average price of $83.01, for a total value of $49,889.01. The disclosure for this sale can be found here. Over the last three months, insiders sold 19,810 shares of company stock worth $1,635,422. 27.96% of the stock is owned by corporate insiders.

Several large investors have recently modified their holdings of MSM. Pearl River Capital LLC acquired a new stake in shares of MSC Industrial Direct in the fourth quarter worth approximately $35,000. Trust Co. of Vermont lifted its position in MSC Industrial Direct by 64.9% during the fourth quarter. Trust Co. of Vermont now owns 874 shares of the industrial products company’s stock worth $67,000 after buying an additional 344 shares in the last quarter. Quantamental Technologies LLC purchased a new position in MSC Industrial Direct during the fourth quarter worth approximately $82,000. PNC Financial Services Group Inc. lifted its position in MSC Industrial Direct by 25.1% during the fourth quarter. PNC Financial Services Group Inc. now owns 1,151 shares of the industrial products company’s stock worth $89,000 after buying an additional 231 shares in the last quarter. Finally, ETF Managers Group LLC lifted its position in MSC Industrial Direct by 17.8% during the fourth quarter. ETF Managers Group LLC now owns 1,450 shares of the industrial products company’s stock worth $112,000 after buying an additional 219 shares in the last quarter. 75.57% of the stock is currently 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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