Atomi Financial Group Acquires W.W. Grainger, Inc. Shares

Atomi Financial Group Inc. has significantly increased its investment in W.W. Grainger, Inc. (NYSE:GWW) by 77.2% during the third quarter, according to a recent report submitted to the Securities and Exchange Commission. By acquiring an additional 190 shares, Atomi now holds a total of 436 shares of this industrial products company, with a total value of approximately $453,000 at the end of this reporting period.

Other institutional investors have also made changes to their positions in W.W. Grainger. For instance, Massachusetts Financial Services Co. MA acquired a new stake worth $281,104,000 during the second quarter. Clearbridge Investments LLC raised its stake by 17.4% in the first quarter and currently owns 1,148,051 shares valued at $1,167,913,000 after purchasing an additional 169,897 shares. Similarly, Swedbank AB initiated a new investment in Grainger worth $159,365,000 in the first quarter. Renaissance Technologies LLC increased its stake by an impressive 563.3% in the second quarter, owning 72,300 shares valued at $65,232,000 after acquiring an additional 61,400 shares. Acadian Asset Management LLC also raised its stake by 67.9% in the second quarter, now owning 143,193 shares worth $129,175,000. Notably, 80.70% of the company’s stock is currently owned by institutional investors and hedge funds.

W.W. Grainger Stock Performance

As of Friday, W.W. Grainger shares (NYSE:GWW) opened at $1,085.04. The company boasts a market capitalization of $52.98 billion, a price-to-earnings ratio of 29.77, and a PEG ratio of 2.88. With a beta of 1.16, the firm’s moving averages stand at $994.06 for the 50-day and $961.00 for the 200-day. Financial metrics include a quick ratio of 1.40, a current ratio of 2.30, and a debt-to-equity ratio of 0.50. Over the past year, W.W. Grainger has experienced a high of $1,088.84 and a low of $674.41.

In its latest earnings report released on August 1st, W.W. Grainger reported earnings of $9.76 per share, surpassing analysts' estimates of $9.58 by $0.18. The quarterly revenue reached $4.31 billion, which was slightly lower than the consensus estimate of $4.35 billion. The company also recorded a net margin of 10.86% and a return on equity of 53.25%. Compared to the previous year, revenue grew by 3.1%. Analysts anticipate that W.W. Grainger will report earnings of $38.65 per share for the current year.

Dividend Information

Recently, W.W. Grainger also announced a quarterly dividend, which was paid on September 1st. Shareholders on record as of August 12th received a dividend of $2.05 per share, translating to an annualized dividend of $8.20 and a yield of 0.76%. The ex-dividend date was also on August 12th, and the company currently boasts a payout ratio of 22.50%.

Analyst Ratings and Predictions

Several research firms have provided insights on W.W. Grainger's stock. On August 2nd, JPMorgan Chase & Co. raised their price target on W.W. Grainger from $1,000.00 to $1,015.00 while maintaining a “neutral” rating. Bank of America started covering the stock on October 7th with an “underperform” rating and a target price of $925.00. Wolfe Research upgraded the stock to a “hold” rating on September 22nd. Other firms, including Erste Group Bank and Morgan Stanley, have also issued “hold” ratings, with target prices of $990.00 and $1,005.20, respectively. Overall, the stock has a consensus rating of “Hold” from analysts.

Insider Trading Activity

In related news, CEO Donald G. Macpherson engaged in insider trading by selling several shares recently. On September 16th, he sold 27,502 shares at an average price of $1,000.82 for a total of approximately $27.52 million. Following this transaction, he retains ownership of about 111,559 shares valued at nearly $111.65 million. Additionally, on September 30th, he sold 12,992 shares at an average price of $1,037.68 for about $13.48 million. After these transactions, he owns approximately 98,567 shares of the company. Currently, insiders own about 9.50% of W.W. Grainger’s stock.

Company Overview

W.W. Grainger, Inc., along with its subsidiaries, is primarily engaged in the distribution of maintenance, repair, and operating products and services across North America, Japan, the United Kingdom, and other international markets. The company operates in two segments: High-Touch Solutions N.A. and Endless Assortment, providing a broad range of products including safety equipment, storage solutions, pumps, plumbing supplies, cleaning products, and hand tools.

Grainger, Acquisition, Stocks