According to Zacks, “During its second quarter conference call, Grainger revised sales growth guidance to 1%–4% for 2016 and earnings per share outlook to $11.20–$12.20. Given the deflationary environment, the company remains cautious on gross margins and lowered its margin expectations. In addition, higher interest expense, tax rates & lower capital expenditure will hurt earnings. Moreover, its Canadian business continues to be affected by low oil prices, impact of the fire in Fort McMurray and unfavorable foreign exchange. Nevertheless, Grainger will benefit from acquisitions, focus on restructuring and growth in eCommerce channel. Further, strong performance of single channel online businesses and attractive growth opportunities in the large and fragmented MRO market bode well for growth.”
GWW has been the topic of several other research reports. Wells Fargo & Co. reaffirmed a hold rating on shares of W.W. Grainger in a research report on Sunday, September 4th. RBC Capital Markets reaffirmed an underperform rating and issued a $187.00 target price (down previously from $197.00) on shares of W.W. Grainger in a research report on Wednesday, July 20th. BMO Capital Markets decreased their target price on W.W. Grainger from $300.00 to $270.00 and set a buy rating on the stock in a research report on Wednesday, July 20th. Barclays PLC upped their target price on W.W. Grainger from $209.00 to $213.00 and gave the company an equal weight rating in a research report on Monday, July 18th. Finally, Credit Suisse Group AG started coverage on W.W. Grainger in a research report on Friday, June 17th. They issued a neutral rating and a $222.00 target price on the stock. Six equities research analysts have rated the stock with a sell rating, nine have given a hold rating and three have issued a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $228.75.
Shares of W.W. Grainger (NYSE:GWW) opened at 216.57 on Tuesday. The firm has a market capitalization of $13.09 billion, a PE ratio of 19.70 and a beta of 0.77. The company’s 50-day moving average price is $226.54 and its 200-day moving average price is $226.40. W.W. Grainger has a 12-month low of $176.85 and a 12-month high of $239.95.
W.W. Grainger (NYSE:GWW) last announced its quarterly earnings results on Tuesday, July 19th. The company reported $2.89 earnings per share for the quarter, missing analysts’ consensus estimates of $3.17 by $0.28. The business had revenue of $2.60 million for the quarter, compared to analyst estimates of $2.58 billion. W.W. Grainger had a return on equity of 31.26% and a net margin of 6.91%. During the same period last year, the firm earned $3.27 EPS. Analysts anticipate that W.W. Grainger will post $11.54 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Thursday, September 1st. Stockholders of record on Monday, August 8th were paid a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 2.25%. The ex-dividend date of this dividend was Thursday, August 4th. W.W. Grainger’s payout ratio is 44.40%.
In related news, VP Joseph C. High sold 1,722 shares of the stock in a transaction on Tuesday, July 26th. The stock was sold at an average price of $220.00, for a total value of $378,840.00. Following the completion of the sale, the vice president now directly owns 7,531 shares in the company, valued at $1,656,820. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 9.60% of the stock is owned by insiders.
A number of hedge funds have recently bought and sold shares of the stock. Evercore Wealth Management LLC increased its stake in W.W. Grainger by 4.4% in the second quarter. Evercore Wealth Management LLC now owns 861 shares of the company’s stock worth $195,000 after buying an additional 36 shares during the last quarter. Williams Jones & Associates LLC increased its stake in W.W. Grainger by 2,123.9% in the second quarter. Williams Jones & Associates LLC now owns 16,724 shares of the company’s stock worth $3,801,000 after buying an additional 15,972 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund bought a new stake in W.W. Grainger during the second quarter worth $518,000. Kentucky Retirement Systems bought a new stake in W.W. Grainger during the second quarter worth $1,090,000. Finally, Mason Street Advisors LLC bought a new stake in W.W. Grainger during the second quarter worth $1,727,000. Institutional investors and hedge funds own 82.63% of the company’s stock.
W.W. Grainger Company Profile
W.W. Grainger, Inc (Grainger) is a distributor of maintenance, repair and operating (MRO) supplies and other related products and services. The Company offers its products and services to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America.
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