W.W. Grainger Reaches New 1-Year High Following Dividend Announcement

W.W. Grainger, Inc. (NYSE:GWW) recently achieved a new high for the year, trading at an impressive $1,130.01 during mid-day sessions on Thursday. This surge followed a dividend announcement by the company, which has drawn the attention of investors. The stock later settled at $1,113.70 with a significant volume of 61,891 shares exchanged, compared to its previous closing price of $1,099.34.

The newly declared dividend of $2.05 will be disbursed on Sunday, December 1st. To receive this payment, investors need to be on record by Monday, November 11th. The ex-dividend date is set for Friday, November 8th. Annually, this amounts to a total dividend of $8.20, which yields about 0.74%. Currently, Grainger's dividend payout ratio stands at 22.64%.

Recent Analyst Ratings

Recent reports from several equities research analysts have impacted the stock’s perception. Loop Capital has increased its price target for W.W. Grainger from $900.00 to $1,100.00, maintaining a “hold” rating. Northcoast Research has initiated coverage on the stock, assigning a “neutral” rating. In another report, Morgan Stanley offered an “equal weight” rating with a $990.00 price target. There's also been a downgrade from Oppenheimer, shifting the rating from “outperform” to “market perform.” Additionally, JPMorgan Chase recently upped its price target from $1,000.00 to $1,015.00, maintaining a “neutral” stance. One analyst rates the stock as a sell, while eleven maintain a hold, two rate it a buy, and one considers it a strong buy. The consensus rating is currently “Hold” with an average price target of $1,043.20 based on MarketBeat data.

W.W. Grainger Stock Performance

The company's 50-day moving average is $1,033.22, while the 200-day moving average stands at $970.74. W.W. Grainger has a current ratio of 2.30, a quick ratio of 1.40, and a debt-to-equity ratio of 0.50. The firm boasts a market capitalization of about $54.50 billion, with a price-to-earnings ratio of 30.67, a PEG ratio of 3.07, and a beta value of 1.16.

Earlier this August, W.W. Grainger reported its quarterly earnings, revealing earnings per share (EPS) of $9.76, which exceeded the consensus estimate of $9.58 by $0.18. The revenue for that quarter amounted to $4.31 billion, slightly below the expected $4.35 billion. The company recorded a net margin of 10.86% and a return on equity of 53.25%. Year-over-year, revenue demonstrated a growth of 3.1%, up from the previous year’s EPS of $9.28. Analysts forecast an EPS of 38.69 for the current fiscal year for W.W. Grainger.

Insider Trading Activity

In a recent development, CEO Donald G. Macpherson made significant sales of company shares. On September 16th, he sold 27,502 shares at an average price of $1,000.82, totaling approximately $27.52 million. This sale left him with 111,559 shares valued at around $111.65 million, indicating a negligible percentage change in his ownership. On September 30th, he sold another 12,992 shares at an average price of $1,037.68 for about $13.48 million, bringing his total owned shares down slightly to 98,567, valued at around $102.28 million. Overall, corporate insiders hold about 9.50% of W.W. Grainger's stock.

Institutional Ownership

Numerous hedge funds have altered their investment levels in the company. For instance, Optas LLC raised its stake by 0.8% during the second quarter, now owning 1,353 shares valued at $1.22 million. Similarly, CX Institutional increased its holdings by 0.9% in the third quarter, now owning 1,191 shares worth $1.24 million. Other firms, including Sage Mountain Advisors and Ritholtz Wealth Management, have also adjusted their positions slightly. Overall, 80.70% of W.W. Grainger’s stock is owned by institutional investors and hedge funds.

About W.W. Grainger

W.W. Grainger, Inc. is a leading distributor of maintenance, repair, and operating products and services, primarily active in North America, Japan, and the UK. The company operates through two main segments: High-Touch Solutions N.A. and Endless Assortment, offering a wide array of products including safety equipment, tools, plumbing products, and cleaning supplies.

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