W.W. Grainger (NYSE:GWW) Sets New 12-Month High After Better-Than-Expected Earnings

Key Points

• Earnings beat: Grainger reported Q EPS of $11.65 vs. $10.20 expected and revenue up 10.1% year-over-year, raised FY2026 EPS guidance to 44.25–46.25, and the stock hit a new 52-week high of $1,286.56.
• Dividend increase: The company raised its quarterly dividend to $2.49 (from $2.26), a $9.96 annualized payout with a ~0.8% yield and a payout ratio of 25.54%, payable June 1 (ex-dividend May 11).
• Analyst reaction: Several firms raised price targets (Oppenheimer to $1,300), but MarketBeat shows a consensus "Hold" rating with an average target of $1,118.14.

W.W. Grainger, Inc. (NYSE:GWW - Get Free Report)'s stock price reached a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $1,286.56 and last traded at $1,257.4210, with a volume of 75240 shares traded. The stock had previously closed at $1,169.86.

The industrial products company reported $11.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.20 by $1.45. W.W. Grainger had a return on equity of 47.46% and a net margin of 9.51%.W.W. Grainger's revenue for the quarter was up 10.1% on a year-over-year basis. During the same period in the previous year, the business earned $9.86 earnings per share. W.W. Grainger has set its FY 2026 guidance at 44.250-46.250 EPS.

W.W. Grainger Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Monday, May 11th will be given a $2.49 dividend. The ex-dividend date is Monday, May 11th. This is a positive change from W.W. Grainger's previous quarterly dividend of $2.26. This represents a $9.96 annualized dividend and a yield of 0.8%. W.W. Grainger's dividend payout ratio (DPR) is currently 25.54%.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Oppenheimer increased their price objective on W.W. Grainger from $1,250.00 to $1,300.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 4th. Barclays increased their price objective on W.W. Grainger from $1,044.00 to $1,047.00 and gave the stock an "underweight" rating in a research report on Monday, March 16th. Morgan Stanley upped their target price on W.W. Grainger from $1,100.00 to $1,190.00 and gave the company an "equal weight" rating in a report on Tuesday, March 3rd. Sanford C. Bernstein upped their target price 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, JPMorgan Chase & Co. upped their target price 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. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $1,118.14.

Insiders Place Their Bets

In other W.W. Grainger news, CFO Deidra C. Merriwether sold 1,488 shares of the company's stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $1,114.28, for a total value of $1,658,048.64. Following the sale, the chief financial officer owned 10,541 shares of the company's stock, valued at approximately $11,745,625.48. This represents a 12.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 6.30% of the company's stock.

Institutional Trading of W.W. Grainger

Large investors have recently made changes to their positions in the stock. Accredited Investors Inc. acquired a new stake in shares of W.W. Grainger during the third quarter valued at $25,000. Miller Capital Partners Inc. acquired a new stake in shares of W.W. Grainger during the fourth quarter valued at $26,000. Ameriflex Group Inc. boosted its stake in shares of W.W. Grainger by 211.1% during the third quarter. Ameriflex Group Inc. now owns 28 shares of the industrial products company's stock valued at $27,000 after acquiring an additional 19 shares during the last quarter. MV Capital Management Inc. acquired a new stake in shares of W.W. Grainger during the fourth quarter valued at $28,000. Finally, Harbor Investment Advisory LLC boosted its stake in shares of W.W. Grainger by 314.3% during the fourth quarter. Harbor Investment Advisory LLC now owns 29 shares of the industrial products company's stock valued at $29,000 after acquiring an additional 22 shares during the last quarter. Institutional investors and hedge funds own 80.70% of the company's stock.

W.W. Grainger Trading Up 6.9%

The company has a quick ratio of 1.59, a current ratio of 2.83 and a debt-to-equity ratio of 0.57. The firm has a market cap of $59.21 billion, a price-to-earnings ratio of 35.47, a price-to-earnings-growth ratio of 2.39 and a beta of 1.04. The business has a 50 day moving average of $1,119.59 and a 200 day moving average of $1,056.38.

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.

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.