W.W. Grainger (NYSE:GWW) Sets New 52-Week High Following Earnings Beat

Key Points

• W.W. Grainger beat quarterly estimates: EPS was $12.54 versus $11.68 expected, while revenue reached $5.18 billion versus $5.08 billion expected and grew 11.3% year over year.
• Shares reached a new 52-week high of $1,520.01 after the earnings report, up from the previous close of $1,397.98.
• The company announced a quarterly dividend of $2.49 per share, equivalent to a 0.7% yield; analysts’ consensus rating remains Hold, with an average price target of $1,266.08.

Shares of W.W. Grainger, Inc. (NYSE:GWW - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $1,520.01 and last traded at $1,485.0370, with a volume of 72,007 shares changing hands. The stock had previously closed at $1,397.98.

The industrial products company reported $12.54 EPS for the quarter, topping the consensus estimate of $11.68 by $0.86. W.W. Grainger had a net margin of 9.92% and a return on equity of 48.73%. The firm had revenue of $5.18 billion during the quarter, compared to analyst estimates of $5.08 billion. During the same quarter in the previous year, the business posted $10.21 EPS. W.W. Grainger's revenue was up 11.3% on a year-over-year basis.

W.W. Grainger Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 9th will be given a $2.49 dividend. This represents a $9.96 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, November 9th. W.W. Grainger's dividend payout ratio (DPR) is presently 25.40%.

Wall Street Analysts Forecast Growth

GWW has been the subject of a number of research analyst reports. Morgan Stanley raised their price target on shares of W.W. Grainger from $1,300.00 to $1,400.00 and gave the stock an "equal weight" rating in a report on Monday, August 24th. Barclays dropped their price objective on shares of W.W. Grainger from $1,185.00 to $1,172.00 and set an "underweight" rating on the stock in a report on Friday, September 25th. Oppenheimer upped their target price on W.W. Grainger from $1,350.00 to $1,375.00 and gave the company an "outperform" rating in a research report on Wednesday, August 5th. Wolfe Research initiated coverage on W.W. Grainger in a research note on Tuesday, September 15th. They issued a "peer perform" rating for the company. Finally, Jefferies Financial Group lifted their price target on W.W. Grainger from $1,150.00 to $1,300.00 and gave the stock a "hold" rating in a research report on Monday, July 20th. Three investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, W.W. Grainger presently has a consensus rating of "Hold" and an average target price of $1,266.08.

Institutional Investors Weigh In On W.W. Grainger

Large investors have recently bought and sold shares of the company. Groesbeck Investment Management Corp NJ raised its stake in W.W. Grainger by 4.0% during the 3rd quarter. Groesbeck Investment Management Corp NJ now owns 208 shares of the industrial products company's stock valued at $259,000 after acquiring an additional 8 shares during the last quarter. Wedbush Securities Inc. increased its holdings in shares of W.W. Grainger by 0.4% in the 2nd quarter. Wedbush Securities Inc. now owns 2,358 shares of the industrial products company's stock valued at $3,208,000 after purchasing an additional 9 shares in the last quarter. Legacy Financial Advisors Inc. lifted its stake in shares of W.W. Grainger by 4.7% in the second quarter. Legacy Financial Advisors Inc. now owns 202 shares of the industrial products company's stock valued at $274,000 after purchasing an additional 9 shares during the period. Montecito Bank & Trust grew its position in W.W. Grainger by 0.6% during the third quarter. Montecito Bank & Trust now owns 1,553 shares of the industrial products company's stock worth $1,935,000 after buying an additional 10 shares during the period. Finally, Choreo LLC increased its holdings in W.W. Grainger by 0.8% in the third quarter. Choreo LLC now owns 1,396 shares of the industrial products company's stock valued at $1,739,000 after buying an additional 11 shares in the last quarter. 80.70% of the stock is currently owned by hedge funds and other institutional investors.

W.W. Grainger Price Performance

The company has a 50 day moving average price of $1,303.50 and a 200 day moving average price of $1,239.03. The company has a current ratio of 2.81, a quick ratio of 1.70 and a debt-to-equity ratio of 0.53. The firm has a market cap of $69.14 billion, a PE ratio of 37.43, a price-to-earnings-growth ratio of 2.44 and a beta of 0.95.

W.W. Grainger Company Profile

W.W. Grainger, Inc is a distributor of maintenance, repair and operating (MRO) supplies for businesses, government agencies and other organizations. Its product offerings include safety equipment, tools, fasteners, electrical and plumbing supplies, material-handling equipment, cleaning and janitorial products, HVAC supplies, and facility-maintenance products.

The company also provides services designed to help customers manage procurement and workplace operations, including product selection support, inventory-management programs, digital purchasing tools, and technical assistance.

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