MSC Industrial Direct (NYSE:MSM) Reaches New 12-Month High - Should You Buy?

Key Points

• Shares hit a new 52-week high intraday at $105.09 and were last trading around $102.93, though the stock was down about 1.2% on the day.
• Analyst consensus is "Hold" with a consensus target of $94.29 (one Buy, eight Holds) despite price targets ranging up to $117, suggesting mixed views and that the stock is trading above the consensus fair value.
• Recent quarter showed an EPS and revenue miss—$0.82 EPS vs $0.84 expected and $917.8M revenue vs $931.7M expected (revenue +2.9% YoY)—and the company pays a 3.4% dividend with a high payout ratio (~93.6%).

MSC Industrial Direct Company, Inc. (NYSE:MSM - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $105.09 and last traded at $102.93, with a volume of 773255 shares traded. The stock had previously closed at $104.17.

Analyst Ratings Changes

A number of research firms have recently issued reports on MSM. iA Financial set a $95.00 price target on MSC Industrial Direct in a research report on Friday, February 6th. Weiss Ratings restated a "hold (c)" rating on shares of MSC Industrial Direct in a research note on Wednesday, January 28th. Wall Street Zen cut MSC Industrial Direct from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. KeyCorp upgraded MSC Industrial Direct from a "sector weight" rating to an "overweight" rating and set a $117.00 price objective for the company in a research note on Monday. Finally, Robert W. Baird set a $94.00 price objective on MSC Industrial Direct in a research note on Thursday, January 8th. One analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $94.29.

MSC Industrial Direct Stock Down 1.2%

The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.78 and a current ratio of 1.73. The stock has a market capitalization of $5.75 billion, a PE ratio of 27.67 and a beta of 0.79. The business has a 50 day moving average of $92.95 and a two-hundred day moving average of $88.99.

MSC Industrial Direct (NYSE:MSM - Get Free Report) last released its quarterly earnings results on Wednesday, April 1st. The industrial products company reported $0.82 EPS for the quarter, missing analysts' consensus estimates of $0.84 by ($0.02). MSC Industrial Direct had a net margin of 5.42% and a return on equity of 16.06%. The business had revenue of $917.77 million during the quarter, compared to analysts' expectations of $931.69 million. During the same quarter last year, the business posted $0.72 earnings per share. The company's quarterly revenue was up 2.9% compared to the same quarter last year. Analysts predict that MSC Industrial Direct Company, Inc. will post 4.33 EPS for the current year.

MSC Industrial Direct Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 22nd. Shareholders of record on Wednesday, April 8th were paid a $0.87 dividend. The ex-dividend date was Wednesday, April 8th. This represents a $3.48 dividend on an annualized basis and a yield of 3.4%. MSC Industrial Direct's dividend payout ratio (DPR) is 93.55%.

Institutional Investors Weigh In On MSC Industrial Direct

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MSM. Quent Capital LLC purchased a new stake in MSC Industrial Direct in the third quarter valued at about $31,000. Hantz Financial Services Inc. raised its stake in MSC Industrial Direct by 257.4% in the third quarter. Hantz Financial Services Inc. now owns 361 shares of the industrial products company's stock valued at $33,000 after buying an additional 260 shares during the last quarter. Quarry LP raised its stake in MSC Industrial Direct by 71.7% in the third quarter. Quarry LP now owns 503 shares of the industrial products company's stock valued at $46,000 after buying an additional 210 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in MSC Industrial Direct in the fourth quarter valued at about $48,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of MSC Industrial Direct by 130.4% in the second quarter. EverSource Wealth Advisors LLC now owns 576 shares of the industrial products company's stock worth $49,000 after purchasing an additional 326 shares during the last quarter. 79.26% of the stock is currently owned by hedge funds and other institutional investors.

MSC Industrial Direct Company Profile

MSC Industrial Direct Co, Inc NYSE: MSM is a leading distributor of metalworking and maintenance, repair and operations (MRO) products serving a broad range of industrial customers across North America. The company offers an extensive portfolio of cutting tools, abrasives, measuring and inspection instruments, fasteners, safety supplies and other essential components used in manufacturing, metalworking and production environments. MSC delivers products through a multi-channel distribution network, including an extensive branch system, e-commerce platform and dedicated sales force.

In addition to its core product offerings, MSC Industrial Direct provides value-added services designed to improve productivity and reduce downtime for its customers.

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