MSC Industrial Direct (NYSE:MSM) Shares Gap Up on Strong Earnings

MSC Industrial Direct Company, Inc. (NYSE:MSM - Get Free Report) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $85.02, but opened at $89.07. MSC Industrial Direct shares last traded at $88.01, with a volume of 326,225 shares traded.

The industrial products company reported $1.08 earnings per share for the quarter, topping analysts' consensus estimates of $1.03 by $0.05. The company had revenue of $971.15 million for the quarter, compared to analyst estimates of $969.72 million. MSC Industrial Direct had a return on equity of 16.06% and a net margin of 5.69%. The firm's revenue for the quarter was down .8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.33 earnings per share.

MSC Industrial Direct Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 23rd. Investors of record on Wednesday, July 9th will be issued a $0.85 dividend. This represents a $3.40 dividend on an annualized basis and a dividend yield of 3.84%. The ex-dividend date is Wednesday, July 9th. MSC Industrial Direct's dividend payout ratio is currently 89.71%.

Analyst Ratings Changes

MSM has been the topic of a number of analyst reports. Industrial Alliance Securities set a $89.00 target price on shares of MSC Industrial Direct in a research note on Tuesday, May 27th. Wolfe Research raised shares of MSC Industrial Direct to a "strong-buy" rating in a research report on Sunday, April 6th. Robert W. Baird lowered their price objective on MSC Industrial Direct from $90.00 to $84.00 and set a "neutral" rating for the company in a research report on Friday, April 4th. JPMorgan Chase & Co. raised MSC Industrial Direct from a "neutral" rating to an "overweight" rating and raised their target price for the stock from $73.00 to $89.00 in a research note on Tuesday, May 27th. Finally, Loop Capital decreased their price target on MSC Industrial Direct from $83.00 to $74.00 and set a "hold" rating on the stock in a research note on Friday, April 4th. Three analysts have rated the stock with a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $86.00.

Insider Buying and Selling at MSC Industrial Direct

In other news, Director Mitchell Jacobson bought 27,642 shares of the business's stock in a transaction on Tuesday, April 8th. The shares were bought at an average price of $69.77 per share, with a total value of $1,928,582.34. Following the completion of the transaction, the director directly owned 1,951,725 shares in the company, valued at $136,171,853.25. This trade represents a 1.44% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 18.30% of the company's stock.

Institutional Investors Weigh In On MSC Industrial Direct

A number of institutional investors have recently modified their holdings of the company. American Century Companies Inc. boosted its holdings in MSC Industrial Direct by 6.8% during the 1st quarter. American Century Companies Inc. now owns 3,650,221 shares of the industrial products company's stock valued at $283,513,000 after acquiring an additional 231,961 shares during the period. First Trust Advisors LP lifted its position in shares of MSC Industrial Direct by 29.2% during the fourth quarter. First Trust Advisors LP now owns 1,987,455 shares of the industrial products company's stock worth $148,443,000 after purchasing an additional 448,708 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of MSC Industrial Direct by 5.2% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,781,503 shares of the industrial products company's stock worth $138,369,000 after purchasing an additional 88,247 shares in the last quarter. Boston Partners boosted its stake in shares of MSC Industrial Direct by 22.9% in the first quarter. Boston Partners now owns 1,762,248 shares of the industrial products company's stock valued at $136,867,000 after purchasing an additional 327,833 shares during the period. Finally, Invesco Ltd. grew its holdings in shares of MSC Industrial Direct by 2.8% in the first quarter. Invesco Ltd. now owns 1,240,418 shares of the industrial products company's stock valued at $96,343,000 after purchasing an additional 33,607 shares in the last quarter. 79.26% of the stock is owned by institutional investors and hedge funds.

MSC Industrial Direct Stock Up 4.1%

The business's fifty day moving average is $80.03 and its two-hundred day moving average is $79.23. The stock has a market cap of $4.93 billion, a price-to-earnings ratio of 23.29 and a beta of 0.87. The company has a quick ratio of 0.88, a current ratio of 1.92 and a debt-to-equity ratio of 0.22.

About MSC Industrial Direct

MSC Industrial Direct Co, Inc, together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies.

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