MSC Industrial Direct Co. Inc. (NYSE: MSM) Volatility Spurs A Quest For Clarity


The Vanguard Group, Inc. recently announced the acquisition of new stake in MSC Industrial Direct Co. Inc. (NYSE:MSM). The institutional investor has increased its shareholding in the Industrials company by 1.34% to 4.75 million shares with purchase of 62592.0 shares. This fresh investment now brings its stake to 10.45% valued currently at $329.28 million. In addition, American Century Investment Manag… raised its holdings by 0.21 million to 2.65 million shares. And Yacktman Asset Management LP has lifted its position by 730.32% or 1.35 million shares – to 1.53 million shares.

With over 0.5 million MSC Industrial Direct Co. Inc. (MSM) shares trading Thursday and a closing price of $73.10 on the day, the dollar volume was approximately $36.73 million. The shares have shown a positive weekly performance of 3.56% and its price on 07/02/20 gained nearly 2.05%. Currently, there are 55.47M common shares owned by the public and among those 44.48M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for MSM have a consensus price objective of $72.00. The analysts have set the share’s price value over the next 12 months at a high of $84.00 and a low of $50.00 should the stock experience a downside. Incidentally, analysts’ outlook for the MSC Industrial Direct Co. Inc. stock is 2.90 for the next 12 months. The average price target is -1.94% below its last price level and a downside to the estimated low will see the stock lose -46.2% over that period. But an upside of 12.98% will see the stock hit the forecast high price target while mean target price for the stock is $76.00.

Insiders at the company have transacted a total of 158 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 105 of these insider trades were purchases, accounting for 126,903 shares. Insider sales of the common stock occurred on 53 occasions, with total insider shares sold totaling 97,777 shares.

The top 3 mutual fund holders in MSC Industrial Direct Co. Inc. are Vanguard Total Stock Market Index, American Century Mid Cap Value Fu, and iShares Core S&P Mid Cap ETF. Vanguard Total Stock Market Index owns 1.3 million shares of the company’s stock, all valued at over $89.93 million. The company sold 13945.0 shares recently to bring their total holdings to about 2.86% of the shares outstanding. American Century Mid Cap Value Fu bought 0.16 million shares to see its total holdings expand to 1.27 million shares valued at over $88.04 million and representing 2.80% of the shares outstanding. iShares Core S&P Mid Cap ETF bought 2560.0 shares to bring its total holdings to over 1.23 million shares at a value of $85.37 million. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.71% of the shares outstanding.

Shares of MSC Industrial Direct Co. Inc. (NYSE: MSM) opened at $72.40, up $0.77 from a prior closing price of $71.63. However, the script later closed the day at $73.10, up 2.05%. The company’s stock has a 5-day price change of 3.56% and 32.07% over the past three months. MSM shares are trading -0.36% year to date (YTD), with the 12-month market performance up to 5.06% higher. It has a 12-month low price of $44.93 and touched a high of $75.32 over the same period. Currently, 0.5 million shares have been traded, compared to an average intraday trading volume of 563.77K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.69%, 9.96%, and 10.49% respectively.

Institutional ownership of MSC Industrial Direct Co. Inc. (NYSE: MSM) shares accounts for 94.40% of the company’s 55.47M shares outstanding. Mutual fund holders own 43.12%, while other institutional holders and individual stakeholders account for 49.81% and 11.12% respectively.

It has a market capitalization of $3.98B and a beta (3y monthly) value of 0.97. The stock’s trailing 12-month PE ratio is 15.18, while the earnings-per-share (ttm) stands at $4.82. The company has a PEG of 10.12 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 0.54. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.72% over the week and 2.84% over the month.

Analysts forecast that MSC Industrial Direct Co. Inc. (MSM) will achieve an EPS of $1.13 for the current quarter, $1.04 for the next quarter and $4.51 for 2021. The lowest estimate earnings-per-share for the quarter is $0.81 while analysts give the company a high EPS estimate of $1.35. Comparatively, EPS for the current quarter was $1.45 a year ago. Earnings per share for the fiscal year are expected to increase by 2.30%, and 1.94% over the next financial year. EPS should shrink at an annualized rate of 1.50% over the next five years, compared to 6.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate MSC Industrial Direct Co. Inc. (MSM) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 9 of the 13 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the MSM, a number of firms have released research notes about the stock. Deutsche Bank stated their Hold rating for the stock in a research note on July 02, 2020, with the firm’s price target at $79. KeyBanc Capital Markets coverage for the MSC Industrial Direct Co. Inc. (MSM) stock in a research note released on March 30, 2020 offered a Overweight rating with a price target of $68. Robert W. Baird was of a view on March 27, 2020 that the stock is Outperform, while Raymond James gave the stock Underperform rating on November 07, 2019 . Wells Fargo on their part issued Underperform rating on October 22, 2019.


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