MSC Industrial Direct Co., Inc. (NYSE:MSM) to Issue Quarterly Dividend of $0.85

MSC Industrial Direct Co., Inc. (NYSE:MSM) announced a quarterly dividend on Wednesday, December 18th,RTT News reports. Investors of record on Wednesday, January 15th will be given a dividend of 0.85 per share by the industrial products company on Wednesday, January 29th. This represents a $3.40 annualized dividend and a yield of 4.34%.

MSC Industrial Direct has increased its dividend payment by an average of 2.2% per year over the last three years. MSC Industrial Direct has a dividend payout ratio of 94.2% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Research analysts expect MSC Industrial Direct to earn $4.16 per share next year, which means the company should continue to be able to cover its $3.40 annual dividend with an expected future payout ratio of 81.7%.

MSC Industrial Direct Stock Performance

Shares of NYSE:MSM traded down $3.03 during midday trading on Wednesday, reaching $78.31. 632,224 shares of the company traded hands, compared to its average volume of 575,666. The firm has a market capitalization of $4.38 billion, a price-to-earnings ratio of 17.10 and a beta of 0.89. The company has a quick ratio of 0.90, a current ratio of 1.96 and a debt-to-equity ratio of 0.20. MSC Industrial Direct has a 12 month low of $75.05 and a 12 month high of $104.76. The firm’s fifty day moving average price is $83.57 and its two-hundred day moving average price is $82.41.

MSC Industrial Direct (NYSE:MSM) last posted its earnings results on Thursday, October 24th. The industrial products company reported $1.03 earnings per share for the quarter, missing analysts’ consensus estimates of $1.08 by ($0.05). MSC Industrial Direct had a return on equity of 19.35% and a net margin of 6.77%. The firm had revenue of $952.30 million for the quarter, compared to analysts’ expectations of $959.74 million. During the same quarter last year, the company posted $1.64 EPS. The firm’s revenue was down 8.0% on a year-over-year basis. On average, equities analysts expect that MSC Industrial Direct will post 3.63 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Philip Peller sold 900 shares of the firm’s stock in a transaction on Wednesday, November 13th. The shares were sold at an average price of $89.07, for a total transaction of $80,163.00. Following the completion of the transaction, the director now owns 4,044 shares of the company’s stock, valued at approximately $360,199.08. This trade represents a 18.20 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Erik Gershwind sold 50,000 shares of MSC Industrial Direct stock in a transaction on Monday, November 11th. The shares were sold at an average price of $90.36, for a total transaction of $4,518,000.00. Following the completion of the sale, the chief executive officer now directly owns 1,402,849 shares of the company’s stock, valued at approximately $126,761,435.64. The trade was a 3.44 % decrease in their position. The disclosure for this sale can be found here. Insiders own 18.80% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have weighed in on MSM shares. Robert W. Baird increased their target price on MSC Industrial Direct from $84.00 to $91.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 16th. Stephens cut MSC Industrial Direct from an “overweight” rating to an “equal weight” rating and set a $85.00 price target for the company. in a report on Wednesday, December 4th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of MSC Industrial Direct from $87.00 to $73.00 and set a “neutral” rating for the company in a research report on Friday, October 25th. Seven equities research analysts have rated the stock with a hold rating, According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $85.20.

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.