MSC Industrial Direct (NYSE:MSM) Sets New 12-Month High - Still a Buy?

Key Points

• MSC Industrial shares hit a new 52-week high, trading as high as $105.41 (last $105.25) on mid-day volume of ~27,582 shares.
• Analyst sentiment is mixed: KeyCorp upgraded MSM to Overweight with a $117 target, but the consensus rating is Hold with a $94.29 average price target from eight hold and one buy analyst.
• Recent quarter showed a slight EPS miss ($0.82 vs. $0.84 consensus) and revenue of $917.8M (+2.9% YoY) and the stock yields 3.3% with a payout ratio near 93.6%, signaling a high dividend payout relative to earnings.

MSC Industrial Direct Company, Inc. (NYSE:MSM - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $105.41 and last traded at $105.2490, with a volume of 27582 shares trading hands. The stock had previously closed at $103.01.

Analyst Upgrades and Downgrades

Several research firms have issued reports on MSM. KeyCorp upgraded shares of MSC Industrial Direct from a "sector weight" rating to an "overweight" rating and set a $117.00 target price on the stock in a research note on Monday, April 27th. Weiss Ratings restated a "hold (c)" rating on shares of MSC Industrial Direct in a research note on Monday, April 27th. Jefferies Financial Group restated a "hold" rating and set a $85.00 target price on shares of MSC Industrial Direct in a research note on Thursday, January 8th. JPMorgan Chase & Co. restated a "neutral" rating and set a $95.00 target price on shares of MSC Industrial Direct in a research note on Friday, February 6th. Finally, iA Financial set a $95.00 price target on MSC Industrial Direct in a report on Friday, February 6th. One equities research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $94.29.

MSC Industrial Direct Price Performance

The firm has a fifty day moving average price of $93.44 and a two-hundred day moving average price of $89.33. 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 $5.88 billion, a P/E ratio of 28.30 and a beta of 0.83.

MSC Industrial Direct (NYSE:MSM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 1st. The industrial products company reported $0.82 earnings per share for the quarter, missing the consensus estimate of $0.84 by ($0.02). MSC Industrial Direct had a return on equity of 16.06% and a net margin of 5.42%.The business had revenue of $917.77 million during the quarter, compared to the consensus estimate of $931.69 million. During the same quarter last year, the company earned $0.72 EPS. MSC Industrial Direct's revenue for the quarter was up 2.9% on a year-over-year basis. As a group, analysts expect that MSC Industrial Direct Company, Inc. will post 4.34 EPS for the current fiscal year.

MSC Industrial Direct Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Stockholders of record on Wednesday, April 8th were paid a $0.87 dividend. This represents a $3.48 annualized dividend and a dividend yield of 3.3%. The ex-dividend date was Wednesday, April 8th. MSC Industrial Direct's dividend payout ratio is 93.55%.

Hedge Funds Weigh In On MSC Industrial Direct

A number of institutional investors have recently bought and sold shares of MSM. Quent Capital LLC bought a new stake in MSC Industrial Direct during the third quarter valued at about $31,000. Hantz Financial Services Inc. raised its holdings in MSC Industrial Direct by 257.4% during the third quarter. Hantz Financial Services Inc. now owns 361 shares of the industrial products company's stock valued at $33,000 after acquiring an additional 260 shares during the period. First Horizon Corp raised its holdings in MSC Industrial Direct by 101.0% during the first quarter. First Horizon Corp now owns 400 shares of the industrial products company's stock valued at $37,000 after acquiring an additional 201 shares during the period. Quarry LP raised its holdings in MSC Industrial Direct by 71.7% during the third quarter. Quarry LP now owns 503 shares of the industrial products company's stock valued at $46,000 after acquiring an additional 210 shares during the period. Finally, Kestra Advisory Services LLC bought a new stake in MSC Industrial Direct during the fourth quarter valued at about $48,000. 79.26% of the stock is owned by institutional investors.

About MSC Industrial Direct

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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