W.W. Grainger (NYSE:GWW) Reaches New 52-Week High - Here's Why

Key Points

• W.W. Grainger shares hit a new 52-week high, trading as high as $1,352.71 and last near $1,359.79, extending a strong run above both its 50-day and 200-day moving averages.
• The company posted better-than-expected quarterly results, with EPS of $11.65 versus the $10.21 consensus and revenue of $4.74 billion, up 10.1% year over year.
• Grainger also raised its quarterly dividend to $2.49 from $2.26, while analysts currently have a consensus rating of Hold and an average price target of $1,217.

W.W. Grainger, Inc. (NYSE:GWW - Get Free Report) shares reached a new 52-week high on Thursday . The company traded as high as $1,352.71 and last traded at $1,359.7860, with a volume of 76680 shares. The stock had previously closed at $1,311.10.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on GWW. Weiss Ratings raised shares of W.W. Grainger from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, May 4th. Royal Bank Of Canada boosted their price target on shares of W.W. Grainger from $1,170.00 to $1,337.00 and gave the stock a "sector perform" rating in a research note on Friday, May 8th. Morgan Stanley boosted their price target on shares of W.W. Grainger from $1,190.00 to $1,300.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 27th. Stephens boosted their price target on shares of W.W. Grainger from $1,300.00 to $1,355.00 and gave the stock an "overweight" rating in a research note on Monday, May 11th. Finally, Sanford C. Bernstein boosted their price target 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. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $1,217.00.

W.W. Grainger Price Performance

The company has a debt-to-equity ratio of 0.55, a current ratio of 2.69 and a quick ratio of 1.60. The stock has a market cap of $63.86 billion, a P/E ratio of 36.36, a P/E/G ratio of 2.44 and a beta of 1.04. The company's 50 day simple moving average is $1,224.58 and its 200 day simple moving average is $1,123.95.

W.W. Grainger (NYSE:GWW - Get Free Report) last issued its earnings results on Thursday, May 7th. The industrial products company reported $11.65 EPS for the quarter, beating the consensus estimate of $10.21 by $1.44. W.W. Grainger had a net margin of 9.70% and a return on equity of 47.87%. The firm had revenue of $4.74 billion during the quarter, compared to the consensus estimate of $4.58 billion. During the same quarter in the prior year, the firm earned $9.86 earnings per share. The business's quarterly revenue 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. As a group, equities analysts forecast that W.W. Grainger, Inc. will post 45.34 earnings per share for the current year.

W.W. Grainger Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Monday, May 11th were paid a $2.49 dividend. The ex-dividend date of this dividend was Monday, May 11th. This is a boost from W.W. Grainger's previous quarterly dividend of $2.26. This represents a $9.96 annualized dividend and a yield of 0.7%. W.W. Grainger's payout ratio is currently 26.79%.

Insider Activity

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in GWW. Wellington Management Group LLP boosted its holdings in shares of W.W. Grainger by 1,462.1% in the fourth 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 buying an additional 1,003,237 shares during the period. Norges Bank acquired a new position in shares of W.W. Grainger in the fourth quarter valued at approximately $518,958,000. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of W.W. Grainger by 34,269.9% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 435,466 shares of the industrial products company's stock valued at $439,407,000 after buying an additional 434,199 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in shares of W.W. Grainger by 61.1% in the fourth 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 buying an additional 389,589 shares during the period. Finally, Sustainable Growth Advisers LP acquired a new position in shares of W.W. Grainger in the third quarter valued at approximately $239,597,000. 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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