Kodai Capital Management LP Invests $67.60 Million in W.W. Grainger, Inc. $GWW

Key Points

• Kodai Capital Management LP has acquired a new stake in W.W. Grainger, purchasing 68,434 shares valued at approximately $67.6 million, making it the firm's second-largest position.
• The company missed earnings expectations for the last quarter, reporting $9.97 earnings per share against a consensus estimate of $10.07 but saw a 5.6% increase in revenue year-over-year.
• A quarterly dividend of $2.26 has been declared, set to be paid to stockholders of record on August 11th, reflecting a 0.9% dividend yield.

Kodai Capital Management LP acquired a new position in W.W. Grainger, Inc. (NYSE:GWW - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 68,434 shares of the industrial products company's stock, valued at approximately $67,601,000. W.W. Grainger accounts for 2.7% of Kodai Capital Management LP's holdings, making the stock its 2nd largest holding. Kodai Capital Management LP owned 0.14% of W.W. Grainger at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Vanguard Group Inc. increased its stake in shares of W.W. Grainger by 1.1% during the first quarter. Vanguard Group Inc. now owns 5,388,378 shares of the industrial products company's stock valued at $5,322,801,000 after purchasing an additional 57,690 shares in the last quarter. JPMorgan Chase & Co. increased its stake in shares of W.W. Grainger by 10.1% during the first quarter. JPMorgan Chase & Co. now owns 822,411 shares of the industrial products company's stock valued at $812,403,000 after purchasing an additional 75,644 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of W.W. Grainger by 100,843.0% during the first quarter. GAMMA Investing LLC now owns 692,469 shares of the industrial products company's stock valued at $684,042,000 after purchasing an additional 691,783 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of W.W. Grainger by 6.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 584,854 shares of the industrial products company's stock valued at $616,465,000 after purchasing an additional 37,894 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of W.W. Grainger by 1.7% during the first quarter. Dimensional Fund Advisors LP now owns 416,086 shares of the industrial products company's stock valued at $410,975,000 after acquiring an additional 6,797 shares in the last quarter. Institutional investors own 80.70% of the company's stock.

W.W. Grainger Price Performance

Shares of GWW traded up $1.68 during trading hours on Tuesday, reaching $1,015.18. 376,353 shares of the stock traded hands, compared to its average volume of 290,053. The company has a current ratio of 2.82, a quick ratio of 1.64 and a debt-to-equity ratio of 0.57. W.W. Grainger, Inc. has a 52-week low of $893.99 and a 52-week high of $1,227.66. The company's 50-day moving average price is $1,014.04 and its two-hundred day moving average price is $1,019.38. The company has a market cap of $48.56 billion, a P/E ratio of 25.76, a price-to-earnings-growth ratio of 2.94 and a beta of 1.18.

W.W. Grainger (NYSE:GWW - Get Free Report) last released its earnings results on Friday, August 1st. The industrial products company reported $9.97 earnings per share for the quarter, missing analysts' consensus estimates of $10.07 by ($0.10). W.W. Grainger had a net margin of 10.99% and a return on equity of 49.63%. The firm had revenue of $4.55 billion for the quarter, compared to analysts' expectations of $4.52 billion. During the same quarter last year, the firm posted $9.76 EPS. The firm's quarterly revenue was up 5.6% compared to the same quarter last year. W.W. Grainger has set its FY 2025 guidance at 38.500-40.250 EPS. On average, analysts anticipate that W.W. Grainger, Inc. will post 40.3 earnings per share for the current year.

W.W. Grainger Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, September 1st. Shareholders of record on Monday, August 11th were issued a $2.26 dividend. This represents a $9.04 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Monday, August 11th. W.W. Grainger's payout ratio is currently 22.94%.

Wall Street Analyst Weigh In

GWW has been the subject of several analyst reports. Loop Capital reduced their price target on shares of W.W. Grainger from $1,000.00 to $950.00 and set a "hold" rating for the company in a research report on Monday, August 4th. Royal Bank Of Canada reduced their price target on shares of W.W. Grainger from $1,176.00 to $1,007.00 and set a "sector perform" rating for the company in a research report on Monday, August 4th. JPMorgan Chase & Co. raised their price target on shares of W.W. Grainger from $1,100.00 to $1,125.00 and gave the company a "neutral" rating in a research report on Tuesday, May 27th. Finally, Morgan Stanley reduced their price target on shares of W.W. Grainger from $1,215.00 to $1,160.00 and set an "equal weight" rating for the company in a research report on Friday, July 11th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $1,080.38.

W.W. Grainger Company Profile

W.W. Grainger, Inc, together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. The company provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools.