MSC Industrial Direct (NYSE:MSM) Stock Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• MSC Industrial Direct shares broke above their 200-day moving average, reaching $129.41 and last trading around $128.52, up 3.9%.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $123.43; recent targets range as high as $155.
• The company exceeded quarterly expectations, reporting adjusted earnings of $1.43 per share versus a $1.28 estimate and revenue of $1.05 billion, up 7.8% year over year. Institutional investors own approximately 79.26% of the stock.

MSC Industrial Direct Company, Inc. (NYSE:MSM - Get Free Report) passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $112.35 and traded as high as $129.41. MSC Industrial Direct shares last traded at $128.5180, with a volume of 1,249,144 shares.

Analysts Set New Price Targets

MSM has been the subject of several recent analyst reports. Rothschild & Co Redburn assumed coverage on MSC Industrial Direct in a research report on Monday, July 13th. They issued a "buy" rating and a $155.00 price target for the company. DA Davidson increased their price objective on shares of MSC Industrial Direct from $145.00 to $150.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. Zacks Research lowered shares of MSC Industrial Direct from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 31st. Wall Street Zen raised shares of MSC Industrial Direct from a "hold" rating to a "buy" rating in a report on Saturday, July 4th. Finally, KeyCorp increased their price target on shares of MSC Industrial Direct from $132.00 to $145.00 and gave the company an "overweight" rating in a report on Wednesday, July 1st. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, MSC Industrial Direct presently has a consensus rating of "Moderate Buy" and an average target price of $123.43.

MSC Industrial Direct Trading Up 3.9%

The stock has a market capitalization of $7.18 billion, a PE ratio of 31.04 and a beta of 0.82. The company has a current ratio of 1.55, a quick ratio of 0.72 and a debt-to-equity ratio of 0.06. The stock has a 50 day moving average price of $121.71 and a 200-day moving average price of $112.35.

MSC Industrial Direct (NYSE:MSM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 1st. The industrial products company reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.15. The business had revenue of $1.05 billion for the quarter, compared to analysts' expectations of $1.03 billion. MSC Industrial Direct had a net margin of 5.91% and a return on equity of 17.34%. The company's revenue was up 7.8% compared to the same quarter last year. During the same quarter last year, the company posted $1.08 EPS. Sell-side analysts expect that MSC Industrial Direct Company, Inc. will post 4.51 earnings per share for the current year.

Institutional Investors Weigh In On MSC Industrial Direct

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Auto Owners Insurance Co raised its stake in MSC Industrial Direct by 12,181.8% during the 4th quarter. Auto Owners Insurance Co now owns 3,254,670 shares of the industrial products company's stock worth $273,718,000 after acquiring an additional 3,228,170 shares during the period. State Street Corp boosted its position in shares of MSC Industrial Direct by 3.7% in the second quarter. State Street Corp now owns 1,463,620 shares of the industrial products company's stock worth $174,098,000 after purchasing an additional 52,860 shares during the period. First Trust Advisors LP increased its stake in shares of MSC Industrial Direct by 20.9% in the first quarter. First Trust Advisors LP now owns 1,773,133 shares of the industrial products company's stock worth $163,607,000 after purchasing an additional 306,436 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of MSC Industrial Direct by 1.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,357,419 shares of the industrial products company's stock valued at $125,240,000 after purchasing an additional 14,484 shares during the period. Finally, Geode Capital Management LLC raised its position in shares of MSC Industrial Direct by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 1,055,261 shares of the industrial products company's stock valued at $88,761,000 after purchasing an additional 22,602 shares during the period. 79.26% of the stock is owned by hedge funds and other institutional investors.

About MSC Industrial Direct

MSC Industrial Direct Co, Inc is a distributor of metalworking and industrial products serving manufacturers and other organizations across North America. The company provides products used in maintenance, repair and operations, including cutting tools, abrasives, tooling components, fasteners, safety equipment, material handling supplies, and janitorial and facility-maintenance products.

MSC serves customers through an omnichannel platform that includes e-commerce, sales representatives, customer service teams, catalogs, and branch locations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.