MSC Industrial Direct (NYSE:MSM) Shares Gap Down After Earnings Miss

MSC Industrial Direct Co., Inc. (NYSE:MSM) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $80.84, but opened at $78.00. MSC Industrial Direct shares last traded at $78.35, with a volume of 273,287 shares.

The industrial products company reported $1.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.08 by ($0.05). MSC Industrial Direct had a net margin of 7.44% and a return on equity of 21.31%. The company had revenue of $952.30 million for the quarter, compared to the consensus estimate of $959.74 million. During the same period last year, the business posted $1.64 EPS. The firm’s revenue was down 8.0% compared to the same quarter last year.

MSC Industrial Direct Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 27th. Investors of record on Wednesday, November 13th will be issued a dividend of $0.85 per share. The ex-dividend date of this dividend is Wednesday, November 13th. This is an increase from MSC Industrial Direct’s previous quarterly dividend of $0.83. This represents a $3.40 dividend on an annualized basis and a yield of 4.32%. MSC Industrial Direct’s dividend payout ratio is 64.47%.

Analyst Upgrades and Downgrades

MSM has been the topic of several research reports. Loop Capital decreased their target price on MSC Industrial Direct from $80.00 to $75.00 and set a “hold” rating on the stock in a research report on Wednesday, July 3rd. Robert W. Baird lifted their target price on shares of MSC Industrial Direct from $84.00 to $91.00 and gave the company a “neutral” rating in a report on Wednesday, October 16th. Finally, JPMorgan Chase & Co. reduced their price target on shares of MSC Industrial Direct from $87.00 to $73.00 and set a “neutral” rating on the stock in a research report on Friday. Six analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $90.20.

Hedge Funds Weigh In On MSC Industrial Direct

Several large investors have recently added to or reduced their stakes in MSM. First Trust Direct Indexing L.P. purchased a new stake in MSC Industrial Direct during the 3rd quarter worth $205,000. Frank Rimerman Advisors LLC lifted its position in shares of MSC Industrial Direct by 2.4% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 6,925 shares of the industrial products company’s stock worth $596,000 after buying an additional 161 shares during the last quarter. GHP Investment Advisors Inc. boosted its stake in MSC Industrial Direct by 67.5% in the third quarter. GHP Investment Advisors Inc. now owns 22,693 shares of the industrial products company’s stock valued at $1,953,000 after acquiring an additional 9,147 shares during the period. Mirae Asset Global Investments Co. Ltd. grew its stake in MSC Industrial Direct by 10.7% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 28,268 shares of the industrial products company’s stock worth $2,462,000 after buying an additional 2,726 shares during the last quarter. Finally, Tectonic Advisors LLC grew its position in shares of MSC Industrial Direct by 27.0% during the third quarter. Tectonic Advisors LLC now owns 62,343 shares of the industrial products company’s stock worth $5,365,000 after acquiring an additional 13,258 shares during the last quarter. 79.26% of the stock is currently owned by hedge funds and other institutional investors.

MSC Industrial Direct Price Performance

The business has a fifty day moving average of $82.00 and a 200-day moving average of $84.36. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.92 and a current ratio of 2.01. The firm has a market capitalization of $4.41 billion, a P/E ratio of 15.27 and a beta of 0.86.

MSC Industrial Direct Company Profile

MSC Industrial Direct Co, Inc, together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies.