MSC Industrial Direct (NYSE:MSM) Stock: Insider Mitchell Jacobson Buys 250,000 Shares

Key Points

• Director Mitchell Jacobson bought 250,000 MSC Industrial Direct shares at an average price of $115.94, investing nearly $29 million and increasing his direct stake by 10.74% to 2.58 million shares.
• MSC Industrial Direct exceeded quarterly expectations, reporting $1.45 in EPS and $1.08 billion in revenue, with revenue up 10.3% year over year.
• The company raised its quarterly dividend to $0.89 per share, while analysts maintained a generally positive outlook with a consensus “Moderate Buy” rating and an average price target of $133.22.

MSC Industrial Direct Company, Inc. (NYSE:MSM - Get Free Report) Director Mitchell Jacobson acquired 250,000 shares of MSC Industrial Direct stock in a transaction on Friday, October 23rd. The stock was purchased at an average cost of $115.94 per share, with a total value of $28,985,000.00. Following the purchase, the director directly owned 2,578,192 shares of the company's stock, valued at approximately $298,915,580.48. This trade represents a 10.74% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link.

MSC Industrial Direct Stock Down 0.4%

Shares of NYSE MSM traded down $0.48 during midday trading on Tuesday, hitting $118.24. 1,197,225 shares of the stock traded hands, compared to its average volume of 750,194. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.85 and a current ratio of 1.78. MSC Industrial Direct Company, Inc. has a one year low of $78.80 and a one year high of $133.95. The business has a 50 day moving average price of $123.18 and a two-hundred day moving average price of $108.47. The company has a market cap of $6.60 billion, a PE ratio of 29.71 and a beta of 0.82.

MSC Industrial Direct (NYSE:MSM - Get Free Report) last issued its earnings results on Thursday, October 22nd. The industrial products company reported $1.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.41 by $0.04. MSC Industrial Direct had a return on equity of 18.72% and a net margin of 5.55%. The company had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.07 billion. During the same period last year, the business earned $1.09 EPS. MSC Industrial Direct's quarterly revenue was up 10.3% compared to the same quarter last year. On average, equities analysts predict that MSC Industrial Direct Company, Inc. will post 5.51 EPS for the current year.

MSC Industrial Direct Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Wednesday, November 11th will be issued a dividend of $0.89 per share. This is an increase from MSC Industrial Direct's previous quarterly dividend of $0.87. This represents a $3.56 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Tuesday, November 10th. MSC Industrial Direct's dividend payout ratio is 89.45%.

Institutional Trading of MSC Industrial Direct

A number of large investors have recently bought and sold shares of the company. Leo Wealth LLC purchased a new stake in MSC Industrial Direct in the 3rd quarter worth about $207,000. Apollon Wealth Management LLC purchased a new position in MSC Industrial Direct in the 3rd quarter valued at approximately $247,000. Signaturefd LLC raised its holdings in MSC Industrial Direct by 34.9% during the 3rd quarter. Signaturefd LLC now owns 3,138 shares of the industrial products company's stock valued at $388,000 after acquiring an additional 811 shares during the period. Citizens Financial Group Inc. RI purchased a new position in shares of MSC Industrial Direct in the third quarter valued at $983,000. Finally, Evergreen Capital Management LLC grew its position in shares of MSC Industrial Direct by 13.9% in the third quarter. Evergreen Capital Management LLC now owns 7,374 shares of the industrial products company's stock valued at $912,000 after purchasing an additional 898 shares in the last quarter. 79.26% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have issued reports on MSM. Stephens upgraded MSC Industrial Direct from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $130.00 to $135.00 in a research note on Friday. Weiss Ratings upgraded MSC Industrial Direct from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, October 13th. Jefferies Financial Group raised shares of MSC Industrial Direct from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $130.00 to $135.00 in a report on Friday. Robert W. Baird set a $130.00 price objective on shares of MSC Industrial Direct in a research report on Friday. Finally, Wolfe Research started coverage on MSC Industrial Direct in a research note on Tuesday, September 15th. They issued a "peer perform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, MSC Industrial Direct currently has a consensus rating of "Moderate Buy" and an average price target of $133.22.

MSC Industrial Direct Company Profile

MSC Industrial Direct Co, Inc is a distributor of metalworking and maintenance, repair and operations (MRO) supplies. The company serves industrial and institutional customers with products used in machining, manufacturing, facility maintenance and workplace safety.

Its offerings include cutting tools, abrasives, tooling and workholding equipment, machinery, safety products, material-handling supplies, janitorial and facility-maintenance products, and other industrial consumables. MSC also provides technical support, inventory-management programs, vending and other supply-chain services designed to help customers manage procurement and production-related needs.

Founded in 1941, MSC serves customers primarily across the United States and Canada through sales representatives, customer service teams, catalogs, distribution operations and digital commerce platforms.

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