W.W. Grainger (NYSE:GWW) Downgraded to "Equal Weight" Rating by Stephens

Key Points

• Stephens downgraded W.W. Grainger from “overweight” to “equal weight” and assigned a $1,355 price target, implying modest downside from the prior close.
• Analyst sentiment is now mixed overall: the stock has 2 Buy, 8 Hold, and 1 Sell ratings, with a consensus Hold and an average target price of $1,216.44.
• Grainger recently posted strong quarterly results, beating EPS and revenue estimates, but insiders have also been selling shares and the stock is trading near its 52-week high.

W.W. Grainger (NYSE:GWW - Get Free Report) was downgraded by research analysts at Stephens from an "overweight" rating to an "equal weight" rating in a research report issued to clients and investors on Tuesday. They presently have a $1,355.00 target price on the industrial products company's stock. Stephens' price objective would suggest a potential downside of 2.60% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the stock. Morgan Stanley boosted their target price on shares of W.W. Grainger from $1,190.00 to $1,300.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 27th. Weiss Ratings lowered shares of W.W. Grainger from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, July 2nd. Sanford C. Bernstein lifted their price objective on shares of W.W. Grainger from $1,052.00 to $1,125.00 and gave the stock a "market perform" rating in a research note on Tuesday, April 21st. DA Davidson started coverage on shares of W.W. Grainger in a report on Tuesday, June 16th. They issued a "neutral" rating and a $1,250.00 price objective for the company. Finally, Barclays decreased their target price on shares of W.W. Grainger from $1,171.00 to $1,166.00 and set an "underweight" rating on the stock in a research report on Tuesday, June 23rd. Two analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $1,216.44.

W.W. Grainger Stock Performance

NYSE:GWW opened at $1,391.16 on Tuesday. The stock has a market cap of $65.68 billion, a P/E ratio of 37.42, a PEG ratio of 2.54 and a beta of 1.03. The stock has a 50 day simple moving average of $1,297.00 and a 200 day simple moving average of $1,169.75. The company has a current ratio of 2.69, a quick ratio of 1.60 and a debt-to-equity ratio of 0.55. W.W. Grainger has a 1-year low of $906.52 and a 1-year high of $1,400.00.

W.W. Grainger (NYSE:GWW - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The industrial products company reported $11.65 EPS for the quarter, beating analysts' consensus estimates of $10.21 by $1.44. The firm had revenue of $4.74 billion for the quarter, compared to analyst estimates of $4.58 billion. W.W. Grainger had a return on equity of 47.87% and a net margin of 9.70%.The company's revenue for the quarter was up 10.1% on a year-over-year basis. During the same period in the prior year, the firm posted $9.86 EPS. W.W. Grainger has set its FY 2026 guidance at 44.250-46.250 EPS. Research analysts anticipate that W.W. Grainger will post 45.47 earnings per share for the current year.

Insider Activity at W.W. Grainger

In related news, VP Laurie R. Thomson sold 313 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $1,231.69, for a total transaction of $385,518.97. Following the completion of the sale, the vice president owned 399 shares of the company's stock, valued at $491,444.31. This represents a 43.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Paige K. Robbins sold 1,457 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $1,232.29, for a total transaction of $1,795,446.53. Following the sale, the vice president owned 2,232 shares in the company, valued at $2,750,471.28. The trade was a 39.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 2,624 shares of company stock valued at $3,232,291 over the last quarter. 6.30% of the stock is owned by corporate insiders.

Institutional Trading of W.W. Grainger

Large investors have recently made changes to their positions in the company. Miller Capital Partners Inc. bought a new stake in W.W. Grainger during the fourth quarter worth $26,000. MV Capital Management Inc. acquired a new stake in W.W. Grainger in the fourth quarter valued at approximately $28,000. Harbor Investment Advisory LLC increased its holdings in W.W. Grainger by 314.3% in the 4th quarter. Harbor Investment Advisory LLC now owns 29 shares of the industrial products company's stock worth $29,000 after purchasing an additional 22 shares in the last quarter. Elyxium Wealth LLC acquired a new stake in W.W. Grainger during the 4th quarter worth approximately $30,000. Finally, Elevation Wealth Partners LLC raised its stake in shares of W.W. Grainger by 420.0% during the second quarter. Elevation Wealth Partners LLC now owns 26 shares of the industrial products company's stock valued at $35,000 after acquiring an additional 21 shares during the last quarter. Institutional investors and hedge funds own 80.70% of the company's stock.

W.W. Grainger Company Profile

W.W. Grainger, Inc NYSE: GWW is an industrial supply distributor founded in 1927 and headquartered in Lake Forest, Illinois. The company supplies maintenance, repair and operations (MRO) products and services to businesses, institutions and government customers. Over its long history Grainger has developed a broad product assortment and a national distribution network that supports operations across a range of end markets, including manufacturing, healthcare, hospitality, transportation and public sector organizations.

Grainger's product portfolio spans core categories such as electrical and lighting, safety and personal protective equipment, material handling, motors and power transmission, plumbing and HVAC, fasteners and adhesives, hand and power tools, and janitorial and facility supplies.

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