Stock Traders Purchase High Volume of MSC Industrial Direct Call Options (NYSE:MSM)

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MSC Industrial Direct Co., Inc. (NYSE:MSM) was the target of some unusual options trading on Tuesday. Traders purchased 866 call options on the company. This represents an increase of 1,297% compared to the average daily volume of 62 call options.

Several institutional investors and hedge funds have recently added to or reduced their stakes in MSM. O Shaughnessy Asset Management LLC boosted its position in shares of MSC Industrial Direct by 63.2% during the third quarter. O Shaughnessy Asset Management LLC now owns 483 shares of the industrial products company’s stock worth $31,000 after buying an additional 187 shares during the period. Van ECK Associates Corp raised its stake in shares of MSC Industrial Direct by 29.9% in the third quarter. Van ECK Associates Corp now owns 817 shares of the industrial products company’s stock valued at $52,000 after acquiring an additional 188 shares in the last quarter. CI Investments Inc. acquired a new stake in shares of MSC Industrial Direct in the third quarter valued at $86,000. Captrust Financial Advisors raised its stake in shares of MSC Industrial Direct by 31.7% in the third quarter. Captrust Financial Advisors now owns 2,300 shares of the industrial products company’s stock valued at $143,000 after acquiring an additional 553 shares in the last quarter. Finally, Verdence Capital Advisors LLC acquired a new stake in shares of MSC Industrial Direct in the third quarter valued at $213,000. Institutional investors and hedge funds own 67.70% of the company’s stock.

MSM opened at $83.32 on Thursday. MSC Industrial Direct has a 52 week low of $44.93 and a 52 week high of $87.84. The business has a fifty day simple moving average of $84.71 and a 200-day simple moving average of $72.09. The firm has a market cap of $4.63 billion, a P/E ratio of 18.43 and a beta of 1.01. The company has a quick ratio of 1.70, a current ratio of 3.03 and a debt-to-equity ratio of 0.38.

MSC Industrial Direct (NYSE:MSM) last released its quarterly earnings results on Wednesday, January 6th. The industrial products company reported $1.10 EPS for the quarter, topping the consensus estimate of $1.08 by $0.02. MSC Industrial Direct had a return on equity of 19.38% and a net margin of 7.87%. The business had revenue of $771.90 million during the quarter, compared to analyst estimates of $771.54 million. During the same period last year, the business posted $1.21 earnings per share. The company’s quarterly revenue was down 6.3% on a year-over-year basis. Sell-side analysts expect that MSC Industrial Direct will post 4.56 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, January 26th. Stockholders of record on Tuesday, January 12th will be given a dividend of $0.75 per share. The ex-dividend date of this dividend is Monday, January 11th. This represents a $3.00 annualized dividend and a dividend yield of 3.60%. MSC Industrial Direct’s dividend payout ratio is currently 63.29%.

A number of equities research analysts have recently issued reports on the company. KeyCorp upped their price target on MSC Industrial Direct from $82.00 to $96.00 and gave the company an “overweight” rating in a research report on Monday, November 23rd. Zacks Investment Research upgraded MSC Industrial Direct from a “hold” rating to a “buy” rating and set a $91.00 price target for the company in a research report on Wednesday. Raymond James upgraded MSC Industrial Direct from an “underperform” rating to a “market perform” rating in a research report on Wednesday, October 28th. They noted that the move was a valuation call. ValuEngine lowered MSC Industrial Direct from a “hold” rating to a “sell” rating in a research report on Tuesday, December 1st. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on MSC Industrial Direct from $75.00 to $92.00 and gave the stock a “hold” rating in a research report on Wednesday, December 16th. One research analyst has rated the stock with a sell rating, six have given a hold rating and four have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $80.63.

MSC Industrial Direct Company Profile

MSC Industrial Direct Co, Inc, together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, Mexico, and the United Kingdom. Its 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.

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