Zacks Investment Research Downgrades MSC Industrial Direct (MSM) to Sell

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MSC Industrial Direct (NYSE:MSM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors 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. “

MSM has been the subject of several other research reports. Wells Fargo & Co reduced their target price on shares of MSC Industrial Direct from $87.00 to $85.00 and set a “market perform” rating for the company in a research note on Friday, December 21st. Jefferies Financial Group initiated coverage on shares of MSC Industrial Direct in a research note on Monday, January 7th. They issued a “buy” rating and a $92.00 target price for the company. Buckingham Research set a $83.00 target price on shares of MSC Industrial Direct and gave the company a “hold” rating in a research note on Thursday, January 10th. Finally, Stephens cut shares of MSC Industrial Direct from an “overweight” rating to an “equal weight” rating and set a $92.00 target price for the company. in a research note on Friday, February 8th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and four have given a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $95.55.

MSM stock opened at $85.44 on Tuesday. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.37 and a quick ratio of 1.27. MSC Industrial Direct has a 52-week low of $73.28 and a 52-week high of $96.58. The stock has a market cap of $4.57 billion, a price-to-earnings ratio of 16.82, a PEG ratio of 1.41 and a beta of 0.86.

MSC Industrial Direct (NYSE:MSM) last released its earnings results on Wednesday, January 9th. The industrial products company reported $1.33 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.32 by $0.01. MSC Industrial Direct had a net margin of 10.53% and a return on equity of 21.97%. The business had revenue of $831.60 million during the quarter, compared to analysts’ expectations of $830.60 million. During the same quarter last year, the company earned $1.05 earnings per share. The firm’s revenue was up 8.2% on a year-over-year basis. As a group, equities analysts anticipate that MSC Industrial Direct will post 5.82 EPS for the current fiscal year.

In related news, SVP Gregory Polli sold 12,736 shares of the stock in a transaction dated Thursday, February 7th. The shares were sold at an average price of $82.60, for a total value of $1,051,993.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Charles Bonomo sold 601 shares of the stock in a transaction dated Tuesday, January 29th. The stock was sold at an average price of $83.01, for a total transaction of $49,889.01. The disclosure for this sale can be found here. In the last quarter, insiders sold 19,810 shares of company stock valued at $1,635,422. 27.96% of the stock is owned by corporate insiders.

Large investors have recently bought and sold shares of the stock. Pearl River Capital LLC acquired a new position in MSC Industrial Direct in the fourth quarter worth about $35,000. Trust Co. of Vermont raised its position in MSC Industrial Direct by 64.9% in the fourth quarter. Trust Co. of Vermont now owns 874 shares of the industrial products company’s stock worth $67,000 after purchasing an additional 344 shares in the last quarter. Quantamental Technologies LLC acquired a new position in MSC Industrial Direct in the fourth quarter worth about $82,000. PNC Financial Services Group Inc. raised its position in MSC Industrial Direct by 25.1% in the fourth quarter. PNC Financial Services Group Inc. now owns 1,151 shares of the industrial products company’s stock worth $89,000 after purchasing an additional 231 shares in the last quarter. Finally, ETF Managers Group LLC raised its position in MSC Industrial Direct by 17.8% in the fourth quarter. ETF Managers Group LLC now owns 1,450 shares of the industrial products company’s stock worth $112,000 after purchasing an additional 219 shares in the last quarter. 78.41% of the stock is owned by hedge funds and other institutional investors.

About MSC Industrial Direct

MSC Industrial Direct Co, Inc, together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products 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 products, 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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