W.W. Grainger (NYSE:GWW) Reaches New 1-Year High - Time to Buy?

Key Points

• W.W. Grainger shares hit a new 52-week high on Friday, trading as high as $1,306.51 and closing near $1,300, extending a strong run in the stock.
• Recent analyst activity has been mixed but generally constructive: several firms raised price targets, while the overall consensus remains Hold with a target price of $1,212.88.
• The company posted strong quarterly results, with EPS of $11.65 beating estimates and revenue rising 10.1% year over year, and it also increased its quarterly dividend to $2.49 per share.

W.W. Grainger, Inc. (NYSE:GWW - Get Free Report) shares reached a new 52-week high during trading on Friday . The stock traded as high as $1,306.51 and last traded at $1,300.7210, with a volume of 57624 shares trading hands. The stock had previously closed at $1,289.37.

Wall Street Analyst Weigh In

GWW has been the subject of several recent analyst reports. Stephens lifted their price target on W.W. Grainger from $1,300.00 to $1,355.00 and gave the company an "overweight" rating in a report on Monday, May 11th. Royal Bank Of Canada lifted their price target on W.W. Grainger from $1,170.00 to $1,337.00 and gave the company a "sector perform" rating in a report on Friday, May 8th. JPMorgan Chase & Co. lifted their price target on W.W. Grainger from $1,100.00 to $1,165.00 and gave the company a "neutral" rating in a report on Friday, February 6th. Sanford C. Bernstein lifted their price target on W.W. Grainger from $1,052.00 to $1,125.00 and gave the company a "market perform" rating in a report on Tuesday, April 21st. Finally, Wall Street Zen upgraded W.W. Grainger from a "hold" rating to a "buy" rating in a report on Saturday, May 23rd. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $1,212.88.

W.W. Grainger Stock Up 0.7%

The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.60 and a current ratio of 2.69. The firm has a market cap of $61.28 billion, a PE ratio of 34.93, a PEG ratio of 2.38 and a beta of 1.04. The stock has a fifty day moving average price of $1,184.13 and a 200-day moving average price of $1,099.83.

W.W. Grainger (NYSE:GWW - Get Free Report) last issued its earnings results on Thursday, May 7th. The industrial products company reported $11.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $10.21 by $1.44. W.W. Grainger had a return on equity of 47.87% and a net margin of 9.70%.The business had revenue of $4.74 billion during the quarter, compared to analysts' expectations of $4.58 billion. During the same quarter in the previous year, the business earned $9.86 EPS. The company's revenue for the quarter was up 10.1% on a year-over-year basis. W.W. Grainger has set its FY 2026 guidance at 44.250-46.250 EPS. Research analysts expect that W.W. Grainger, Inc. will post 45.34 EPS for the current year.

W.W. Grainger Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 11th were issued a dividend of $2.49 per share. This represents a $9.96 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, May 11th. This is an increase from W.W. Grainger's previous quarterly dividend of $2.26. W.W. Grainger's dividend payout ratio (DPR) is presently 26.79%.

Insider Transactions at W.W. Grainger

In other W.W. Grainger news, VP Paige K. Robbins sold 1,457 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $1,232.29, for a total value of $1,795,446.53. Following the completion of the transaction, the vice president owned 2,232 shares in the company, valued at $2,750,471.28. This represents a 39.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Jonny M. Leroy sold 854 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $1,231.06, for a total value of $1,051,325.24. Following the completion of the transaction, the senior vice president owned 1,554 shares of the company's stock, valued at approximately $1,913,067.24. This represents a 35.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 6,451 shares of company stock worth $7,380,743 over the last 90 days. Company insiders own 6.30% of the company's stock.

Hedge Funds Weigh In On W.W. Grainger

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its holdings in W.W. Grainger by 1.9% in the 3rd quarter. Vanguard Group Inc. now owns 5,731,880 shares of the industrial products company's stock worth $5,462,252,000 after acquiring an additional 104,607 shares during the period. State Street Corp raised its position in shares of W.W. Grainger by 1.2% in the 4th quarter. State Street Corp now owns 2,019,452 shares of the industrial products company's stock valued at $2,037,728,000 after purchasing an additional 23,399 shares in the last quarter. Geode Capital Management LLC raised its position in shares of W.W. Grainger by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 1,217,834 shares of the industrial products company's stock valued at $1,230,214,000 after purchasing an additional 10,533 shares in the last quarter. Wellington Management Group LLP raised its position in shares of W.W. Grainger by 1,462.1% in the 4th quarter. Wellington Management Group LLP now owns 1,071,854 shares of the industrial products company's stock valued at $1,081,554,000 after purchasing an additional 1,003,237 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD raised its position in shares of W.W. Grainger by 61.1% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,027,286 shares of the industrial products company's stock valued at $1,036,584,000 after purchasing an additional 389,589 shares in the last quarter. Hedge funds and other institutional investors own 80.70% of the company's stock.

About W.W. Grainger

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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