Global Industrial (NYSE:GIC) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Global Industrial Company shares surged from $27.11 to an opening price of $29.46 after reporting strong earnings, including an EPS of $0.65 that surpassed expectations.
• The company achieved a revenue of $358.90 million for the quarter, exceeding analysts' predictions of $351.81 million.
• Institutional investors have significantly increased their stakes in Global Industrial, with notable increases of 187.7% and 340.7% in recent quarters.

Global Industrial Company (NYSE:GIC - Get Free Report)'s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $27.11, but opened at $29.46. Global Industrial shares last traded at $32.34, with a volume of 56,170 shares.

The company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.15. Global Industrial had a net margin of 5.00% and a return on equity of 22.89%. The business had revenue of $358.90 million during the quarter, compared to analysts' expectations of $351.81 million.

Global Industrial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 18th. Shareholders of record on Monday, August 11th will be paid a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 3.1%. The ex-dividend date is Monday, August 11th. Global Industrial's payout ratio is presently 60.82%.

Institutional Investors Weigh In On Global Industrial

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Sei Investments Co. boosted its position in Global Industrial by 42.4% during the fourth quarter. Sei Investments Co. now owns 8,884 shares of the company's stock valued at $220,000 after acquiring an additional 2,645 shares during the last quarter. KLP Kapitalforvaltning AS bought a new stake in Global Industrial in the fourth quarter worth $283,000. JPMorgan Chase & Co. increased its position in shares of Global Industrial by 139.0% during the fourth quarter. JPMorgan Chase & Co. now owns 109,941 shares of the company's stock valued at $2,725,000 after buying an additional 63,936 shares during the period. New Age Alpha Advisors LLC purchased a new stake in shares of Global Industrial in the fourth quarter worth $50,000. Finally, Geode Capital Management LLC grew its stake in Global Industrial by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 319,056 shares of the company's stock valued at $7,912,000 after acquiring an additional 2,973 shares in the last quarter. 31.19% of the stock is currently owned by institutional investors and hedge funds.

Global Industrial Stock Performance

The stock has a market cap of $1.28 billion, a P/E ratio of 19.55, a price-to-earnings-growth ratio of 1.19 and a beta of 0.80. The company's fifty day moving average price is $27.44 and its 200-day moving average price is $25.09.

About Global Industrial

Global Industrial Company operates as an industrial distributor of various industrial and maintenance, repair, and operation (MRO) products in North America. It offers storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, foodservice and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials.