MSC Industrial Direct (MSM) Rating Lowered to Hold at Zacks Investment Research

MSC Industrial Direct (NYSE:MSM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.

According to Zacks, “MSC Industrial Direct Co., Inc. is one of the premier distributors of Metalworking and Maintenance, Repair and Operations (MRO) supplies to industrial customers throughout the United States. MSC distributes approximately 590,000 industrial products from approximately 3,000 suppliers to approximately 350,000 customers. MSC reaches its customers through a combination of approximately 27 million direct-mail catalogs and CD-ROMs, 96 branch sales offices, 927 sales people, the Internet and associations with some of the world’s most prominent B2B e-commerce portals. “

Several other equities analysts have also recently weighed in on MSM. ValuEngine cut MSC Industrial Direct from a “hold” rating to a “sell” rating in a report on Monday, July 2nd. Wells Fargo & Co cut their price objective on MSC Industrial Direct from $95.00 to $87.00 and set a “market perform” rating on the stock in a report on Thursday, July 12th. Northcoast Research set a $95.00 price objective on MSC Industrial Direct and gave the company a “buy” rating in a report on Friday, July 13th. BMO Capital Markets cut their price objective on MSC Industrial Direct from $104.00 to $92.00 and set a “market perform” rating on the stock in a report on Thursday, July 12th. Finally, Gordon Haskett began coverage on MSC Industrial Direct in a report on Friday, October 12th. They set a “buy” rating on the stock. Ten research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. MSC Industrial Direct presently has a consensus rating of “Hold” and an average price target of $100.00.

Shares of MSM opened at $81.06 on Tuesday. The company has a current ratio of 2.34, a quick ratio of 1.14 and a debt-to-equity ratio of 0.22. MSC Industrial Direct has a 1 year low of $75.34 and a 1 year high of $99.94. The stock has a market cap of $4.61 billion, a price-to-earnings ratio of 15.96, a P/E/G ratio of 1.02 and a beta of 0.51.

MSC Industrial Direct (NYSE:MSM) last issued its earnings results on Tuesday, October 30th. The industrial products company reported $1.32 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.29 by $0.03. MSC Industrial Direct had a return on equity of 21.36% and a net margin of 10.28%. The firm had revenue of $838.00 million for the quarter, compared to analysts’ expectations of $838.88 million. During the same quarter last year, the business earned $1.07 earnings per share. The company’s revenue was up 11.2% compared to the same quarter last year. As a group, equities analysts predict that MSC Industrial Direct will post 5.89 earnings per share for the current year.

In other news, Director Denis F. Kelly sold 1,500 shares of MSC Industrial Direct stock in a transaction dated Tuesday, August 21st. The stock was sold at an average price of $88.43, for a total transaction of $132,645.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 31.28% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Macquarie Group Ltd. bought a new stake in MSC Industrial Direct in the 2nd quarter valued at approximately $110,000. CHICAGO TRUST Co NA acquired a new position in shares of MSC Industrial Direct during the 2nd quarter worth approximately $218,000. Nomura Holdings Inc. acquired a new position in shares of MSC Industrial Direct during the 2nd quarter worth approximately $219,000. Meeder Asset Management Inc. increased its position in shares of MSC Industrial Direct by 374.5% during the 2nd quarter. Meeder Asset Management Inc. now owns 3,089 shares of the industrial products company’s stock worth $262,000 after purchasing an additional 2,438 shares during the last quarter. Finally, Itau Unibanco Holding S.A. increased its position in shares of MSC Industrial Direct by 703.7% during the 2nd quarter. Itau Unibanco Holding S.A. now owns 3,271 shares of the industrial products company’s stock worth $278,000 after purchasing an additional 2,864 shares during the last quarter. Hedge funds and other institutional investors own 75.39% of the company’s stock.

About MSC Industrial Direct

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

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