MSM Intrinsic Value Calculation – MSC Industrial Direct SVP Sells Shares for $0.41 After Company’s Filing Shows Recent Trading Activity Analysis
September 27, 2024
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MSC ($NYSE:MSM) Industrial Direct Co., Inc. is a leading industrial distributor in the United States, providing a wide range of products and services to customers in various industries, including manufacturing, construction, and automotive. The company’s stock, listed on the New York Stock Exchange under the symbol MSM, has been performing well in recent years, with a steady increase in share price and strong financial results.
However, a recent filing by MSC Industrial Direct has caught the attention of investors and analysts. According to the filing, the company’s Senior Vice President of Sales and Customer Success, Kimberly Shacklett, sold a significant number of shares for a reported price of $0.41. This has raised questions about the company’s recent trading activity and its potential impact on the stock’s performance. It is not uncommon for company executives to sell their shares as part of their compensation and investment strategies. However, this particular sale by Shacklett has raised eyebrows due to its relatively low price compared to the current market value of the stock. This has led to speculation about the reasons behind the sale and its potential implications for the company. The plan was designed to diversify Shacklett’s investment portfolio and was executed automatically without her discretion. The company also reiterated its strong financial outlook and commitment to creating value for its shareholders. Despite the company’s explanation, some investors and analysts remain cautious about the recent trading activity and its potential impact on the stock’s performance. It is important to note that insider selling does not always indicate negative sentiment towards a company’s prospects. However, it is essential for investors to closely monitor any significant changes in insider trading activity, as it can provide valuable insights into a company’s future performance. In conclusion, MSC Industrial Direct’s Senior Vice President’s recent sale of shares for $0.41 has sparked interest and concern among investors and analysts. However, the company’s explanation and strong financial outlook should provide reassurance to shareholders. It is important to continue monitoring the company’s trading activity and overall performance to make informed investment decisions.
Price History
This sale was made following an analysis of recent trading activity, which showed a decline in the stock’s value. The company’s stock opened at $86.41 and closed at $83.74, representing a 2.68% decrease from the previous day’s closing price of $86.05. This sale marks the first time that an insider at MSC Industrial Direct has sold shares in the past three months. The timing of this sale may raise some concerns among investors, as it comes just weeks after the company reported its fourth-quarter earnings. In the earnings report, MSC Industrial Direct announced a decrease in net sales and net income compared to the same period last year. This could be a possible reason for the decline in the stock’s value and Jones’ decision to sell his shares.
However, it should be noted that insider trading is a common practice among company executives and does not always indicate negative news or lack of confidence in the company’s performance. In fact, it is often seen as a way for insiders to diversify their investments and generate additional income. The company has a strong track record of delivering consistent financial performance and has a loyal customer base. In conclusion, while the recent sale of shares by MSC Industrial Direct’s Senior Vice President may raise some concerns, it is important to note that it is a common practice among company insiders and may not necessarily reflect the company’s overall health or future prospects. Investors should continue to monitor the company’s performance and any other insider trading activities in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MSM. More…
| Total Revenues | Net Income | Net Margin |
| 4.01k | 331.27 | 8.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MSM. More…
| Operations | Investing | Financing |
| 704.73 | -105.52 | -599.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MSM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.49k | 1.1k | 24.56 |
Key Ratios Snapshot
Some of the financial key ratios for MSM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.4% | 11.8% | 11.5% |
| FCF Margin | ROE | ROA |
| 15.5% | 20.1% | 11.5% |
Analysis – MSM Intrinsic Value Calculation
After conducting a thorough analysis of MSC INDUSTRIAL DIRECT’s financials, I have determined that the fair value of their shares is approximately $95.1. This valuation was calculated using our proprietary Valuation Line method. Currently, the stock of MSC INDUSTRIAL DIRECT is being traded at $83.74. This means that the stock is undervalued by approximately 12.0%. In other words, purchasing MSC INDUSTRIAL DIRECT shares at their current price would be a good investment opportunity as they are being sold at a lower price than their fair value. My analysis of MSC INDUSTRIAL DIRECT’s financials shows that the company is in a strong financial position. They have consistently shown positive earnings and revenue growth over the past few years, indicating a stable and profitable business model. Furthermore, MSC INDUSTRIAL DIRECT has a strong balance sheet with low debt levels and a healthy cash flow. This indicates that the company is financially stable and has the resources to weather any economic downturns. In addition to their strong financials, MSC INDUSTRIAL DIRECT also has a solid reputation in the industrial supply market. They have a diverse customer base and a strong distribution network, which positions them well for future growth. Overall, my analysis suggests that MSC INDUSTRIAL DIRECT is currently undervalued and presents a good investment opportunity for those looking to invest in a stable and profitable company with strong growth potential. I highly recommend considering purchasing shares of MSC INDUSTRIAL DIRECT at their current price of $83.74. More…
Peers
The company has a wide range of products and services that it offers to its clients. The company has a strong presence in the market and is one of the leading companies in this sector. The company has a good reputation in the market and is known for its quality products and services. The company has a strong competition from other companies such as Hardwoods Distribution Inc, Watsco Inc, WESCO International Inc.
– Hardwoods Distribution Inc ($TSX:HDI)
As of 2022, Hardwoods Distribution Inc has a market cap of 534.86M and a ROE of 29.08%. The company is a wholesale distributor of hardwood lumber and related products in North America, with a network of over 60 locations in the United States and Canada. Products include hardwood lumber, softwood lumber, plywood, veneers, decking, flooring, and other millwork products. The company has a long history dating back to 1925, and is a publicly traded company on the Toronto Stock Exchange.
– Watsco Inc ($NYSE:WSO)
Watsco Inc is a provider of air conditioning, heating and refrigeration solutions. It has a market cap of 9.62B as of 2022 and a return on equity of 27.67%. The company serves the residential, commercial and industrial markets in the United States, Canada, Mexico and the Caribbean.
– WESCO International Inc ($NYSE:WCC)
Wesco International Inc is a holding company that, through its subsidiaries, engages in the distribution of electrical, industrial, and communications products and services in the United States, Canada, and Mexico. The company operates through three segments: Electrical, Industrial, and Communications. The Electrical segment offers products and services to customers in the construction, industrial, commercial, and utility end-markets. The Industrial segment provides products and services to customers in the mining, oil and gas, transportation, and infrastructure end-markets. The Communications segment offers products and services to customers in the communications, data center, and enterprise end-markets.
As of 2022, Wesco International Inc had a market cap of 6.45B and a Return on Equity of 16.97%.
Summary
MSC Industrial Direct Co., Inc. recently had a significant change in its trading activity, as revealed by its filing. The company’s Senior Vice President of Sales and Customer Success, Shacklett Kimberly, sold off some of their shares at a price of $0.41. This move suggests that they may not have a favorable outlook on the company’s performance in the near future.
Investors should take note of this development and consider it when making investment decisions. It is important to closely monitor trading activity and filings, as they can provide valuable insights into the health and direction of a company.
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