MSC Industrial Direct (NYSE:MSM) Shares Gap Down on Disappointing Earnings

MSC Industrial Direct Co Inc (NYSE:MSM)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $69.21, but opened at $69.55. MSC Industrial Direct shares last traded at $71.13, with a volume of 17,331 shares trading hands.

The industrial products company reported $1.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.50 by ($0.05). MSC Industrial Direct had a net margin of 8.79% and a return on equity of 21.08%. The company had revenue of $866.50 million during the quarter, compared to analyst estimates of $881.62 million. During the same quarter in the prior year, the company earned $1.39 EPS. The business’s revenue was up 4.6% on a year-over-year basis.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 6th. Shareholders of record on Tuesday, July 23rd will be paid a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 4.14%. The ex-dividend date is Monday, July 22nd. This is an increase from MSC Industrial Direct’s previous quarterly dividend of $0.63. MSC Industrial Direct’s dividend payout ratio is currently 49.61%.



MSM has been the subject of several research analyst reports. Gordon Haskett downgraded shares of MSC Industrial Direct from a “buy” rating to a “hold” rating and set a $72.02 price objective for the company. in a research note on Monday, June 10th. William Blair reaffirmed a “market perform” rating on shares of Luminex in a report on Tuesday, May 7th. Zacks Investment Research raised shares of SCHNEIDER ELEC /ADR from a “hold” rating to a “buy” rating and set a $20.00 target price for the company in a report on Friday, July 5th. Robert W. Baird upped their target price on shares of Atlassian from $110.00 to $120.00 and gave the company an “outperform” rating in a report on Thursday, April 11th. Finally, Northcoast Research cut shares of MSC Industrial Direct from a “buy” rating to a “neutral” rating and reduced their target price for the company from $89.00 to $74.00 in a report on Friday. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and two have issued a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $80.70.

In related news, EVP Steven N. Baruch sold 5,404 shares of the stock in a transaction dated Monday, April 29th. The shares were sold at an average price of $82.00, for a total transaction of $443,128.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Douglas E. Jones sold 2,126 shares of the stock in a transaction dated Wednesday, April 24th. The stock was sold at an average price of $83.50, for a total transaction of $177,521.00. Following the transaction, the executive vice president now directly owns 7,496 shares of the company’s stock, valued at $625,916. The disclosure for this sale can be found here. 27.96% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of MSM. Norges Bank purchased a new position in MSC Industrial Direct during the fourth quarter worth about $48,204,000. QV Investors Inc. purchased a new position in MSC Industrial Direct during the first quarter worth about $35,596,000. Los Angeles Capital Management & Equity Research Inc. raised its holdings in MSC Industrial Direct by 1,146.7% during the first quarter. Los Angeles Capital Management & Equity Research Inc. now owns 344,619 shares of the industrial products company’s stock worth $28,503,000 after purchasing an additional 316,976 shares in the last quarter. DekaBank Deutsche Girozentrale purchased a new position in MSC Industrial Direct during the first quarter worth about $11,422,000. Finally, Raymond James & Associates raised its holdings in MSC Industrial Direct by 12.0% during the first quarter. Raymond James & Associates now owns 853,323 shares of the industrial products company’s stock worth $70,579,000 after purchasing an additional 91,355 shares in the last quarter. 76.11% of the stock is owned by hedge funds and other institutional investors.

The stock has a market capitalization of $3.84 billion, a PE ratio of 14.28, a PEG ratio of 1.25 and a beta of 0.94. The business has a fifty day moving average price of $72.39. The company has a quick ratio of 1.18, a current ratio of 2.50 and a debt-to-equity ratio of 0.20.

MSC Industrial Direct Company Profile (NYSE:MSM)

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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