Prudential Financial Inc. significantly increased its holdings in MSC Industrial Direct Company, Inc. (NYSE: MSM) by an impressive 250.8% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the fund acquired an additional 10,242 shares, bringing its total to 14,325 shares valued at approximately $1.19 million.
This investment move reflects broader trends in institutional investment, as several other funds have also adjusted their positions in MSC Industrial Direct. American Century Companies Inc. raised its stake by 2.5% in the same quarter, now owning 3,743,021 shares worth around $318.2 million. Similarly, Charles Schwab Investment Management Inc. increased its holdings by 5.2%, bringing its total to 1,781,503 shares valued at $138.4 million.
Boston Partners boosted its position by 22.9%, now holding 1,762,248 shares valued at $136.9 million, while Invesco Ltd. and Epoch Investment Partners Inc. also increased their stakes by 2.8% and 13.2%, respectively. Together, institutional investors and hedge funds own approximately 79.26% of MSC Industrial Direct’s stock.
Stock Performance and Dividends
As of November 26, shares of MSC Industrial Direct opened at $82.85. The company boasts a market capitalization of $4.62 billion, with a price-to-earnings ratio of 23.27 and a beta of 0.84. The stock has shown stability, with a 50-day moving average of $87.27 and a two-hundred-day average of $87.03. The stock’s one-year low is $68.10, while its high is $94.31.
In a recent development, MSC Industrial Direct announced a quarterly dividend of $0.87, paid on November 26, 2023. This increase from the previous quarterly dividend of $0.85 represents an annualized dividend of $3.48, yielding 4.2% for shareholders. The dividend payout ratio currently stands at 97.75%.
Analyst Insights and Insider Transactions
Recent analyst reports have provided mixed reviews for MSC Industrial Direct. Wall Street Zen downgraded the stock from a “buy” to a “hold” rating, while Wolfe Research changed its rating from “outperform” to “peer perform.” Conversely, JPMorgan Chase & Co. raised its target price from $93.00 to $96.00 and assigned an “overweight” rating.
MarketBeat.com indicates that one investment analyst has rated the stock as a “buy,” while six others have recommended holding it, leading to an average rating of “hold” with a target price of $91.50.
In terms of insider trading, Director Mitchell Jacobson recently purchased 22,870 shares at an average price of $84.96 per share, totaling approximately $1.94 million. Following this transaction, Jacobson owns 2,328,192 shares valued at around $197.8 million. Additionally, Director Philip Peller acquired 6,666 shares at an average price of $90.14, representing a significant increase in his ownership.
In the last three months, insiders have collectively purchased 211,342 shares valued at approximately $17.95 million. Currently, insiders hold around 18.30% of the company’s stock.
As MSC Industrial Direct continues to grow its footprint in the industrial sector, the recent investment activities and dividend announcements signal a strong outlook for the company moving forward.
