W.W. Grainger (NYSE:GWW) Shares Gap Down After Earnings Miss

W.W. Grainger, Inc. (NYSE:GWW)’s stock price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $1,126.07, but opened at $1,062.20. W.W. Grainger shares last traded at $1,034.28, with a volume of 49,558 shares traded.

The industrial products company reported $9.71 EPS for the quarter, missing analysts’ consensus estimates of $9.75 by ($0.04). W.W. Grainger had a return on equity of 51.78% and a net margin of 10.80%. During the same period in the prior year, the business earned $8.33 EPS.

W.W. Grainger Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Saturday, March 1st. Shareholders of record on Monday, February 10th will be issued a dividend of $2.05 per share. This represents a $8.20 dividend on an annualized basis and a yield of 0.77%. The ex-dividend date is Monday, February 10th. W.W. Grainger’s payout ratio is presently 22.23%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on GWW. Oppenheimer downgraded shares of W.W. Grainger from an “outperform” rating to a “market perform” rating in a research note on Thursday, October 17th. UBS Group started coverage on W.W. Grainger in a research report on Wednesday, November 13th. They set a “neutral” rating and a $1,280.00 price target on the stock. Robert W. Baird raised W.W. Grainger from a “neutral” rating to an “outperform” rating and upped their price target for the company from $975.00 to $1,230.00 in a research report on Wednesday, October 16th. StockNews.com lowered shares of W.W. Grainger from a “buy” rating to a “hold” rating in a research note on Thursday, December 19th. Finally, Bank of America started coverage on W.W. Grainger in a report on Monday, October 7th. They issued an “underperform” rating and a $925.00 price objective for the company. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, two have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $1,140.56.

Insider Transactions at W.W. Grainger

In related news, VP Laurie R. Thomson sold 125 shares of the stock in a transaction that occurred on Wednesday, November 13th. The shares were sold at an average price of $1,206.03, for a total value of $150,753.75. Following the transaction, the vice president now owns 675 shares in the company, valued at approximately $814,070.25. This represents a 15.63 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Paige K. Robbins sold 9,577 shares of W.W. Grainger stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $1,117.84, for a total value of $10,705,553.68. Following the transaction, the vice president now owns 4,379 shares of the company’s stock, valued at $4,895,021.36. The trade was a 68.62 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 9.50% of the company’s stock.

Institutional Trading of W.W. Grainger

Several institutional investors have recently bought and sold shares of the business. GHP Investment Advisors Inc. boosted its position in W.W. Grainger by 250.0% during the third quarter. GHP Investment Advisors Inc. now owns 28 shares of the industrial products company’s stock worth $29,000 after acquiring an additional 20 shares during the last quarter. Iron Horse Wealth Management LLC grew its stake in shares of W.W. Grainger by 43.5% in the fourth quarter. Iron Horse Wealth Management LLC now owns 33 shares of the industrial products company’s stock valued at $35,000 after buying an additional 10 shares in the last quarter. AlphaMark Advisors LLC purchased a new stake in W.W. Grainger during the 4th quarter worth approximately $37,000. Larson Financial Group LLC grew its stake in W.W. Grainger by 111.1% during the 3rd quarter. Larson Financial Group LLC now owns 38 shares of the industrial products company’s stock worth $40,000 after purchasing an additional 20 shares in the last quarter. Finally, Newbridge Financial Services Group Inc. purchased a new stake in shares of W.W. Grainger during the fourth quarter worth approximately $47,000. 80.70% of the stock is owned by institutional investors and hedge funds.

W.W. Grainger Trading Down 5.5 %

The company’s 50-day moving average price is $1,118.60 and its 200-day moving average price is $1,065.26. The firm has a market capitalization of $51.84 billion, a PE ratio of 28.85, a PEG ratio of 2.86 and a beta of 1.18. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.68 and a current ratio of 2.59.

W.W. Grainger Company Profile

W.W. Grainger, Inc, together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. The company provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools.