W.W. Grainger (NYSE:GWW) Shares Gap Down on Disappointing Earnings

W.W. Grainger, Inc. (NYSE:GWW) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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 trading hands.

The industrial products company reported $9.71 earnings per share (EPS) for the quarter, missing the consensus estimate 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 previous year, the business earned $8.33 EPS.

W.W. Grainger Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Saturday, March 1st. Investors of record on Monday, February 10th will be paid a $2.05 dividend. The ex-dividend date is Monday, February 10th. This represents a $8.20 annualized dividend and a dividend yield of 0.79%. W.W. Grainger’s payout ratio is 22.23%.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Bank of America assumed coverage on shares of W.W. Grainger in a research note on Monday, October 7th. They issued an “underperform” rating and a $925.00 target price for the company. Oppenheimer cut shares of W.W. Grainger from an “outperform” rating to a “market perform” rating in a report on Thursday, October 17th. Royal Bank of Canada increased their target price on shares of W.W. Grainger from $1,018.00 to $1,125.00 and gave the stock a “sector perform” rating in a research report on Friday, November 1st. Northcoast Research initiated coverage on W.W. Grainger in a research report on Tuesday, October 29th. They issued a “neutral” rating for the company. Finally, UBS Group started coverage on W.W. Grainger in a report on Wednesday, November 13th. They set a “neutral” rating and a $1,280.00 price objective on the stock. One analyst has rated the stock with a sell rating, ten have given a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $1,140.56.

Insiders Place Their Bets

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

Institutional Investors Weigh In On W.W. Grainger

Several institutional investors and hedge funds have recently bought and sold shares of GWW. International Assets Investment Management LLC increased its stake in W.W. Grainger by 92,754.3% in the third quarter. International Assets Investment Management LLC now owns 87,283 shares of the industrial products company’s stock valued at $906,700,000 after acquiring an additional 87,189 shares during the period. AustralianSuper Pty Ltd boosted its stake in W.W. Grainger by 694.1% in the 4th quarter. AustralianSuper Pty Ltd now owns 76,674 shares of the industrial products company’s stock valued at $80,818,000 after buying an additional 67,018 shares in the last quarter. Champlain Investment Partners LLC bought a new stake in W.W. Grainger in the third quarter valued at $55,815,000. Assenagon Asset Management S.A. raised its stake in W.W. Grainger by 1,653.7% during the fourth quarter. Assenagon Asset Management S.A. now owns 56,978 shares of the industrial products company’s stock worth $60,058,000 after acquiring an additional 53,729 shares in the last quarter. Finally, State Street Corp boosted its stake in shares of W.W. Grainger by 2.3% in the 3rd quarter. State Street Corp now owns 1,997,191 shares of the industrial products company’s stock valued at $2,074,702,000 after purchasing an additional 45,369 shares in the last quarter. Institutional investors own 80.70% of the company’s stock.

W.W. Grainger Price Performance

The company’s 50 day moving average price is $1,121.45 and its 200 day moving average price is $1,063.88. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.68 and a current ratio of 2.59. The company has a market cap of $50.65 billion, a price-to-earnings ratio of 28.19, a P/E/G ratio of 2.86 and a beta of 1.18.

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.