W.W. Grainger, Inc. Price Target Set at $1,043.20

W.W. Grainger, Inc. (NYSE:GWW) is currently under analysis by a group of fourteen experts, who have given the stock a general recommendation to “Hold.” According to reports from MarketBeat Ratings, among these analysts, one has suggested selling the stock, ten have classified it as a hold, two have rated it as a buy, and one has provided a strong buy rating. The average target price proposed for W.W. Grainger over the next twelve months is set at $1,043.20.

Several analysts have provided their insights on the company recently. Northcoast Research initiated coverage with a “neutral” rating. Meanwhile, Royal Bank of Canada adjusted its price target for Grainger from $978.00 to $972.00 and categorized it as a “sector perform.” This change was made known in a report dated August 2nd. Oppenheimer also downgraded its rating from “outperform” to “market perform” as of October 17th. Conversely, Wolfe Research upgraded the stock to a “hold” rating on September 22nd. Lastly, Loop Capital increased its target price from $900.00 to $1,100.00, maintaining a “hold” designation for the stock.

Insider Activity

In related news, the CEO of W.W. Grainger, Donald G. Macpherson, executed a significant stock sale on September 30th, involving 12,992 shares sold at an average price of $1,037.68. The total amount raised from this transaction was over $13 million. As a result of this sale, Macpherson now holds 98,567 shares, valued at approximately $102.3 million. Another sale occurred on September 16th, where he sold 27,502 shares at an average price of $1,000.82, amounting to over $27 million. In total, insiders currently hold about 9.50% of the company’s shares.

Institutional Investor Activity

Recent changes in ownership reflect activity among institutional investors. HWG Holdings LP acquired a new position in W.W. Grainger during the second quarter, valued around $26,000. GHP Investment Advisors increased its holdings by 250%, now owning 28 shares valued at $29,000 after adding 20 shares last quarter. Washington Trust Advisors also raised its position by 225%, holding 39 shares now worth $39,000 following a purchase of 27 additional shares. Furthermore, Triad Wealth Partners LLC entered a new investment in W.W. Grainger this past quarter, with a stake valued at $42,000. Currently, institutional investors and hedge funds own around 80.70% of the company’s stock.

Current Stock Performance

The stock of W.W. Grainger opened at $1,110.72. Over the past year, it recorded a low of $721.99 and a peak of $1,130.01. The company has robust financial health, reflected in its quick ratio of 1.40, a current ratio of 2.30, and a debt-to-equity ratio of 0.50. Its moving averages have been $1,033.22 over the last 50 days and $970.74 for the past 200 days, with the market capitalization standing at $54.5 billion. The price-to-earnings ratio is at 30.67, with a price-to-earnings-growth ratio of 3.07 and a beta of 1.16.

W.W. Grainger announced its quarterly earnings results on August 1st, reporting earnings per share (EPS) of $9.76, surpassing analysts’ expectations of $9.58. The return on equity for the firm stood at 53.25%, with a net margin of 10.86%. Revenue totaled $4.31 billion for the quarter, slightly below expectations of $4.35 billion, showing a 3.1% increase compared to the previous year. Analysts forecasted EPS of $38.69 for the ongoing year.

Dividend Announcement

The company also declared a quarterly dividend of $2.05 per share, to be paid on December 1st, with a record date of November 11th. The annualized dividend amount totals $8.20, yielding a 0.74% return. The ex-dividend date is set for November 8th, and the dividend payout ratio is noted at 22.64%.

About W.W. Grainger

W.W. Grainger, Inc. specializes in distributing maintenance, repair, and operating products and services across various regions including North America, Japan, and the UK. The company's operations are divided into two segments: High-Touch Solutions N.A. and Endless Assortment, covering products from safety and security items to plumbing equipment and hand tools.

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