Kornitzer Capital Management Inc. KS Reduces Stake in W.W. Grainger, Inc. $GWW

Key Points

• Kornitzer Capital Management cut its stake in W.W. Grainger by 76.3% in the first quarter, leaving it with 1,687 shares worth about $1.84 million.
• W.W. Grainger reported better-than-expected Q1 earnings, posting $11.65 EPS and $4.74 billion in revenue, while revenue rose 10.1% year over year.
• The company also raised its quarterly dividend to $2.49 per share, while analysts currently rate the stock a Hold on average with a $1,216.44 price target.

Kornitzer Capital Management Inc. KS trimmed its position in shares of W.W. Grainger, Inc. (NYSE:GWW - Free Report) by 76.3% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 1,687 shares of the industrial products company's stock after selling 5,417 shares during the quarter. Kornitzer Capital Management Inc. KS's holdings in W.W. Grainger were worth $1,840,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. State Street Corp grew its stake in W.W. Grainger by 1.2% in the 4th quarter. State Street Corp now owns 2,019,452 shares of the industrial products company's stock valued at $2,037,728,000 after acquiring an additional 23,399 shares during the last quarter. Geode Capital Management LLC grew its position in shares of W.W. Grainger by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 1,217,834 shares of the industrial products company's stock valued at $1,230,214,000 after purchasing an additional 10,533 shares during the last quarter. Wellington Management Group LLP raised its position in shares of W.W. Grainger by 1,462.1% during the 4th quarter. Wellington Management Group LLP now owns 1,071,854 shares of the industrial products company's stock worth $1,081,554,000 after purchasing an additional 1,003,237 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in W.W. Grainger by 61.1% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,027,286 shares of the industrial products company's stock valued at $1,036,584,000 after buying an additional 389,589 shares in the last quarter. Finally, Northern Trust Corp increased its position in W.W. Grainger by 0.5% during the third quarter. Northern Trust Corp now owns 659,158 shares of the industrial products company's stock worth $628,151,000 after buying an additional 3,114 shares in the last quarter. Hedge funds and other institutional investors own 80.70% of the company's stock.

W.W. Grainger Trading Up 0.2%

NYSE GWW opened at $1,379.19 on Monday. W.W. Grainger, Inc. has a 12 month low of $906.52 and a 12 month high of $1,390.96. The company has a 50-day moving average of $1,292.40 and a 200-day moving average of $1,167.16. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.69 and a quick ratio of 1.60. The company has a market cap of $65.11 billion, a P/E ratio of 37.09, a P/E/G ratio of 2.54 and a beta of 1.03.

W.W. Grainger (NYSE:GWW - Get Free Report) last released its earnings results on Thursday, May 7th. The industrial products company reported $11.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $10.21 by $1.44. The firm had revenue of $4.74 billion during the quarter, compared to the consensus estimate of $4.58 billion. W.W. Grainger had a net margin of 9.70% and a return on equity of 47.87%. W.W. Grainger's revenue was up 10.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $9.86 earnings per share. W.W. Grainger has set its FY 2026 guidance at 44.250-46.250 EPS. As a group, equities analysts predict that W.W. Grainger, Inc. will post 45.47 earnings per share for the current year.

W.W. Grainger Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Monday, May 11th were issued a $2.49 dividend. The ex-dividend date was Monday, May 11th. This is an increase from W.W. Grainger's previous quarterly dividend of $2.26. This represents a $9.96 dividend on an annualized basis and a yield of 0.7%. W.W. Grainger's payout ratio is 26.79%.

Insider Activity at W.W. Grainger

In other news, SVP Jonny M. Leroy sold 854 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $1,231.06, for a total value of $1,051,325.24. Following the transaction, the senior vice president directly owned 1,554 shares in the company, valued at $1,913,067.24. This trade represents a 35.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Paige K. Robbins sold 1,457 shares of W.W. Grainger stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $1,232.29, for a total value of $1,795,446.53. Following the completion of the transaction, the vice president directly owned 2,232 shares in the company, valued at $2,750,471.28. This represents a 39.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 2,624 shares of company stock worth $3,232,291. 6.30% of the stock is owned by insiders.

Analyst Ratings Changes

GWW has been the subject of a number of recent research reports. Weiss Ratings cut W.W. Grainger from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, July 2nd. Barclays reduced their target price on shares of W.W. Grainger from $1,171.00 to $1,166.00 and set an "underweight" rating on the stock in a report on Tuesday, June 23rd. Royal Bank Of Canada lifted their price target on shares of W.W. Grainger from $1,170.00 to $1,337.00 and gave the stock a "sector perform" rating in a report on Friday, May 8th. Stephens boosted their price objective on shares of W.W. Grainger from $1,300.00 to $1,355.00 and gave the company an "overweight" rating in a research report on Monday, May 11th. Finally, Morgan Stanley raised their target price on shares of W.W. Grainger from $1,190.00 to $1,300.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, W.W. Grainger presently has an average rating of "Hold" and an average price target of $1,216.44.

W.W. Grainger Profile

W.W. Grainger, Inc NYSE: GWW is an industrial supply distributor founded in 1927 and headquartered in Lake Forest, Illinois. The company supplies maintenance, repair and operations (MRO) products and services to businesses, institutions and government customers. Over its long history Grainger has developed a broad product assortment and a national distribution network that supports operations across a range of end markets, including manufacturing, healthcare, hospitality, transportation and public sector organizations.

Grainger's product portfolio spans core categories such as electrical and lighting, safety and personal protective equipment, material handling, motors and power transmission, plumbing and HVAC, fasteners and adhesives, hand and power tools, and janitorial and facility supplies.

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