W.W. Grainger (NYSE:GWW) Shares Gap Down on Disappointing Earnings

W.W. Grainger, Inc. (NYSE:GWW)’s share price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $1,126.07, but opened at $1,062.20. W.W. Grainger shares last traded at $1,034.28, with a volume of 49,558 shares trading hands.

The industrial products company reported $9.71 EPS for the quarter, missing the consensus estimate of $9.75 by ($0.04). W.W. Grainger had a net margin of 10.80% and a return on equity of 51.78%. During the same quarter in the prior year, the firm earned $8.33 EPS.

W.W. Grainger Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Saturday, March 1st. Stockholders of record on Monday, February 10th will be given a dividend of $2.05 per share. The ex-dividend date of this dividend is Monday, February 10th. This represents a $8.20 dividend on an annualized basis and a dividend yield of 0.79%. W.W. Grainger’s payout ratio is currently 22.23%.

Analysts Set New Price Targets

Several analysts have commented on the stock. Bank of America initiated coverage on shares of W.W. Grainger in a research report on Monday, October 7th. They set an “underperform” rating and a $925.00 target price for the company. Robert W. Baird raised shares of W.W. Grainger from a “neutral” rating to an “outperform” rating and upped their target price for the company from $975.00 to $1,230.00 in a research note on Wednesday, October 16th. Baird R W raised shares of W.W. Grainger from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 16th. Oppenheimer downgraded W.W. Grainger from an “outperform” rating to a “market perform” rating in a research note on Thursday, October 17th. Finally, Morgan Stanley boosted their target price on W.W. Grainger from $990.00 to $1,215.00 and gave the company an “equal weight” rating in a research note on Tuesday, November 19th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $1,140.56.

Insider Transactions at W.W. Grainger

In related news, VP Paige K. Robbins sold 9,577 shares of W.W. Grainger stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $1,117.84, for a total transaction of $10,705,553.68. Following the completion of the sale, the vice president now owns 4,379 shares of the company’s stock, valued at approximately $4,895,021.36. The trade was a 68.62 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Laurie R. Thomson sold 125 shares of the stock in a transaction dated Wednesday, November 13th. The shares were sold at an average price of $1,206.03, for a total transaction of $150,753.75. Following the completion of the transaction, the vice president now directly owns 675 shares in the company, valued at approximately $814,070.25. This represents a 15.63 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 9.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On W.W. Grainger

Several institutional investors and hedge funds have recently made changes to their positions in GWW. B. Riley Wealth Advisors Inc. increased its position in W.W. Grainger by 36.4% during the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 1,303 shares of the industrial products company’s stock worth $1,176,000 after buying an additional 348 shares during the period. Cetera Investment Advisers raised its stake in W.W. Grainger by 7.3% in the 2nd quarter. Cetera Investment Advisers now owns 14,801 shares of the industrial products company’s stock worth $13,354,000 after purchasing an additional 1,006 shares in the last quarter. Sanctuary Advisors LLC bought a new stake in W.W. Grainger in the 2nd quarter valued at about $4,558,000. Czech National Bank grew its position in shares of W.W. Grainger by 8.6% during the 3rd quarter. Czech National Bank now owns 9,051 shares of the industrial products company’s stock worth $9,402,000 after purchasing an additional 718 shares in the last quarter. Finally, Unique Wealth LLC raised its position in shares of W.W. Grainger by 18.6% in the third quarter. Unique Wealth LLC now owns 1,501 shares of the industrial products company’s stock valued at $1,559,000 after buying an additional 235 shares in the last quarter. Institutional investors and hedge funds own 80.70% of the company’s stock.

W.W. Grainger Trading Down 7.6 %

The firm has a market capitalization of $50.65 billion, a P/E ratio of 28.19, a PEG ratio of 2.86 and a beta of 1.18. The company has a quick ratio of 1.68, a current ratio of 2.59 and a debt-to-equity ratio of 0.59. The firm has a 50 day moving average of $1,121.45 and a 200-day moving average of $1,063.88.

W.W. Grainger Company Profile

W.W. Grainger, Inc, together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. The company provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools.