Prudential Financial Inc. significantly increased its stake in MSC Industrial Direct Company, Inc. (NYSE: MSM) by an impressive 250.8% during the second quarter of 2023. According to the latest filings with the Securities and Exchange Commission, Prudential now holds 14,325 shares of the industrial products company, having acquired an additional 10,242 shares in the quarter. The value of Prudential’s holdings in MSC Industrial Direct reached approximately $1.19 million at the close of the reporting period.
Other institutional investors have also adjusted their positions in MSC Industrial Direct. American Century Companies Inc. raised its stake by 2.5% during the same period, now owning 3,743,021 shares, valued at $318.23 million after purchasing 92,800 shares. Charles Schwab Investment Management Inc. increased its holdings by 5.2% in the first quarter, bringing its total to 1,781,503 shares worth $138.37 million after acquiring an additional 88,247 shares. Boston Partners also expanded its position by 22.9%, now holding 1,762,248 shares valued at $136.87 million.
Invesco Ltd. and Epoch Investment Partners Inc. made similar moves, increasing their stakes by 2.8% and 13.2%, respectively. Collectively, institutional investors and hedge funds own approximately 79.26% of MSC Industrial Direct’s stock.
Market Performance and Dividend Increase
On Monday, MSC Industrial Direct’s stock opened at $82.85, contributing to a market capitalization of $4.62 billion. The company maintains a price-to-earnings (P/E) ratio of 23.27, and its beta stands at 0.84. With a debt-to-equity ratio of 0.12, the company also reports a current ratio of 1.68 and a quick ratio of 0.80. Over the past year, MSC Industrial Direct’s stock has fluctuated within a range of $68.10 to $94.31.
The company recently declared a quarterly dividend of $0.87, an increase from the previous $0.85 payout. This dividend was paid on November 26, 2023, to shareholders of record as of November 12, 2023. The annualized dividend now totals $3.48, yielding 4.2%. The current dividend payout ratio for MSC Industrial Direct is approximately 97.75%.
Analyst Ratings and Insider Transactions
Analysts have recently provided varying assessments of MSC Industrial Direct. Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on November 9, 2023. Similarly, Wolfe Research downgraded its rating from “outperform” to “peer perform” in early October. In contrast, JPMorgan Chase & Co. raised its target price from $93.00 to $96.00 and assigned an “overweight” rating on October 24, 2023. According to MarketBeat.com, the stock currently holds an average rating of “hold” with a target price of $91.50.
In terms of insider transactions, Director Mitchell Jacobson recently acquired 22,870 shares at an average price of $84.96 per share, totaling approximately $1.94 million. Following this acquisition, Jacobson’s ownership in the company rose to 2,328,192 shares, valued at about $197.80 million. Another director, Philip Peller, purchased 6,666 shares for approximately $600,873.24, increasing his stake by 232.18%.
In total, insiders have acquired 211,342 shares valued at around $17.95 million over the past three months, representing 18.30% of the company’s stock.
MSC Industrial Direct, alongside its subsidiaries, distributes a wide array of metalworking and maintenance, repair, and operations (MRO) products and services across the United States, Canada, Mexico, and the United Kingdom. The company’s product offerings include cutting tools, measuring instruments, and various machinery and electrical supplies.
