Prudential Financial Inc. significantly increased its holdings in MSC Industrial Direct Company, Inc. during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the financial services company raised its stake by 250.8%, resulting in ownership of 14,325 shares, valued at approximately $1.19 million at the close of the reporting period.
This strategic move follows purchases of an additional 10,242 shares throughout the quarter, reflecting Prudential’s confidence in the industrial products sector. Other institutional investors have also made notable adjustments to their holdings in MSC Industrial Direct, showcasing a growing interest in the company.
American Century Companies Inc. increased its stake in MSC Industrial Direct by 2.5%, now owning 3,743,021 shares valued at $318.2 million after acquiring an additional 92,800 shares. Similarly, Charles Schwab Investment Management Inc. raised its position by 5.2% in the first quarter, bringing its total to 1,781,503 shares worth $138.4 million. Boston Partners also reported a 22.9% increase, while Invesco Ltd. and Epoch Investment Partners Inc. lifted their stakes by 2.8% and 13.2%, respectively.
As of now, institutional investors and hedge funds collectively own 79.26% of MSC Industrial Direct’s stock, indicating strong institutional interest in the company.
Stock Performance and Dividend Announcement
Shares of MSC Industrial Direct opened at $82.85 on the most recent trading day, with a market capitalization of $4.62 billion. The company reported a price-to-earnings (P/E) ratio of 23.27 and a beta of 0.84. Financial ratios indicate a debt-to-equity ratio of 0.12, a current ratio of 1.68, and a quick ratio of 0.80. Over the last year, the stock has fluctuated between a low of $68.10 and a high of $94.31.
Notably, MSC Industrial Direct recently declared a quarterly dividend of $0.87, which was paid to shareholders on November 26, 2023. This marks an increase from the previous dividend of $0.85 and translates to an annualized dividend of $3.48, yielding 4.2%. The company’s dividend payout ratio currently stands at 97.75%.
Analyst Insights and Insider Transactions
Wall Street analysts have recently evaluated MSC Industrial Direct, resulting in varied ratings. Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on November 9, 2023. Wolfe Research also adjusted its rating from “outperform” to “peer perform” in early October. Conversely, JPMorgan Chase & Co. raised its target price to $96.00 while maintaining an “overweight” rating.
Currently, one analyst rates the stock as a “buy,” while six others have assigned a “hold” rating. According to MarketBeat.com, the average target price for MSC Industrial Direct stands at $91.50.
In addition to institutional activity, insider trading has also been notable. Director Mitchell Jacobson purchased 22,870 shares at an average price of $84.96 per share, totaling approximately $1.94 million. Following this purchase, Jacobson now owns 2,328,192 shares valued at around $197.8 million. Another director, Philip Peller, also increased his stake by buying 6,666 shares at an average price of $90.14 per share.
Overall, insiders have acquired 211,342 shares valued at nearly $18 million in the past three months, with insiders currently holding 18.30% of the company’s stock.
MSC Industrial Direct Company, Inc. operates in the metalworking and maintenance, repair, and operations (MRO) sector, distributing a wide range of products across the United States, Canada, Mexico, the United Kingdom, and internationally. Its offerings include cutting tools, measuring instruments, and various industrial supplies.
