MSC Industrial Direct (NYSE:MSM) Shares Up 5.8% - Still a Buy?

Key Points

• Shares jumped 5.8% intraday to about $103.50 on Monday, trading volume was slightly below average and the stock trades above its 50- and 200-day moving averages with a market cap near $5.8 billion.
• Analysts are mostly cautious—the consensus rating is Hold (eight Holds, one Buy) with an average target of $94.29, though KeyCorp recently upgraded the stock to Overweight with a $117 target.
• MSC slightly missed quarterly estimates (EPS $0.82 vs. $0.84 expected; revenue $917.8M vs. $931.7M), saw revenue up 2.9% year-over-year, and pays a $0.87 quarterly dividend (3.3% yield) with a high payout ratio (~93.6%) and ~79% institutional ownership.

MSC Industrial Direct Company, Inc. (NYSE:MSM - Get Free Report) shares shot up 5.8% during mid-day trading on Monday . The company traded as high as $103.94 and last traded at $103.50. 564,228 shares changed hands during trading, a decline of 19% from the average session volume of 698,300 shares. The stock had previously closed at $97.83.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on MSM. Jefferies Financial Group reaffirmed a "hold" rating and set a $85.00 price objective on shares of MSC Industrial Direct in a report on Thursday, January 8th. Robert W. Baird set a $94.00 target price on MSC Industrial Direct in a research note on Thursday, January 8th. iA Financial set a $95.00 target price on MSC Industrial Direct in a research note on Friday, February 6th. KeyCorp upgraded 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. Finally, JPMorgan Chase & Co. reiterated a "neutral" rating and set a $95.00 target price on shares of MSC Industrial Direct in a research note 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's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $94.29.

MSC Industrial Direct Stock Up 6.7%

The company has a market capitalization of $5.83 billion, a P/E ratio of 28.05 and a beta of 0.79. 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 50 day moving average price of $92.55 and a 200 day moving average price of $88.76.

MSC Industrial Direct (NYSE:MSM - Get Free Report) last announced its quarterly earnings data on Wednesday, April 1st. The industrial products company reported $0.82 earnings per share (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 firm had revenue of $917.77 million during the quarter, compared to the consensus estimate of $931.69 million. During the same quarter in the prior year, the firm posted $0.72 earnings per share. The company's revenue was up 2.9% on a year-over-year basis. Equities research analysts forecast that MSC Industrial Direct Company, Inc. will post 4.33 earnings per share for the current fiscal year.

MSC Industrial Direct Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Investors of record on Wednesday, April 8th were paid a $0.87 dividend. This represents a $3.48 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date was Wednesday, April 8th. MSC Industrial Direct's payout ratio is currently 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. Auto Owners Insurance Co raised its stake in MSC Industrial Direct by 12,181.8% in the 4th quarter. Auto Owners Insurance Co now owns 3,254,670 shares of the industrial products company's stock valued at $273,718,000 after acquiring an additional 3,228,170 shares during the period. Norges Bank bought a new position in shares of MSC Industrial Direct in the fourth quarter valued at approximately $59,380,000. Alberta Investment Management Corp grew its stake in MSC Industrial Direct by 213.7% during the fourth quarter. Alberta Investment Management Corp now owns 619,600 shares of the industrial products company's stock valued at $52,108,000 after acquiring an additional 422,100 shares in the last quarter. SG Capital Management LLC increased its holdings in MSC Industrial Direct by 867.0% during the 3rd quarter. SG Capital Management LLC now owns 360,988 shares of the industrial products company's stock worth $33,261,000 after acquiring an additional 323,659 shares during the period. Finally, Corient Private Wealth LLC lifted its stake in MSC Industrial Direct by 3,393.6% in the 4th quarter. Corient Private Wealth LLC now owns 275,432 shares of the industrial products company's stock worth $23,164,000 after purchasing an additional 267,548 shares in the last quarter. 79.26% of the stock is currently 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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