Sumitomo Mitsui DS Asset Management Increases Stake in W.W. Grainger

Sumitomo Mitsui DS Asset Management Company Ltd has increased its holdings in W.W. Grainger, Inc. (NYSE:GWW) by 10.1% during the fourth quarter, as stated in its latest 13F filing with the Securities and Exchange Commission (SEC). The company now owns a total of 5,148 shares of the industrial products giant after purchasing an additional 472 shares in the quarter. Valued at approximately $5,426,000, this investment reflects Sumitomo Mitsui DS Asset Management's confidence in W.W. Grainger's long-term potential.

Institutional Investment Trends

In addition to Sumitomo Mitsui, several other institutional investors and hedge funds have also adjusted their positions in W.W. Grainger. For instance, Iron Horse Wealth Management LLC upped its stake by 43.5% during the fourth quarter, ending with 33 shares valued at around $35,000 after acquiring 10 additional shares. Likewise, Adero Partners LLC increased its holdings by 4.0%, bringing its total to 368 shares worth approximately $388,000.

Meanwhile, Tyche Wealth Partners LLC entered a new position in W.W. Grainger valued at about $221,000. Mirae Asset Global Investments Co. Ltd. grew its stake by 24.3%, adding 1,251 shares that now total 6,406 shares, valued at $6,826,000. Stratos Wealth Advisors LLC also slightly increased its position in W.W. Grainger, owning 635 shares with a total value of $669,000. Currently, institutional investors, including hedge funds, control about 80.70% of W.W. Grainger's shares.

Stock Performance and Metrics

As of its recent trading session, W.W. Grainger's stock opened at $1,035.98. The 50-day and 200-day moving average prices stand at $1,101.83 and $1,068.29, respectively. The company has a 12-month low of $874.98 and a high of $1,227.66, reflecting significant volatility in the market. W.W. Grainger boasts a market capitalization of $50.45 billion, a price-to-earnings ratio of 26.76, and a beta of 1.17, indicating its relative volatility compared to the market.

Recent Earnings Results

W.W. Grainger released its earnings report on January 31, revealing earnings per share of $9.71 for the quarter, just below analysts' expectations of $9.75 by $0.04. The company's return on equity stood at 52.43%, while its net margin was recorded at 11.12%. In the same quarter last year, the company reported earnings per share of $8.33. Analysts forecast that W.W. Grainger will achieve earnings per share of approximately 40.3 by the end of the current fiscal year.

Dividend Announcements

The company has also announced a quarterly dividend of $2.05 per share, which will be paid on March 1 to shareholders on record as of February 10. This translates to an annualized dividend of $8.20 and a yield of 0.79%. W.W. Grainger's payout ratio currently stands at 21.18%, indicating a sustainable approach to returning value to shareholders.

Analyst Ratings

Recent comments from research analysts indicate a variety of opinions on W.W. Grainger's stock. Royal Bank of Canada lowered their price target from $1,113.00 to $1,112.00 while maintaining a "sector perform" rating. Similarly, JPMorgan Chase & Co. revised their target down to $1,100.00 but also issued a "neutral" rating. Conversely, Loop Capital raised their price target from $900.00 to $1,100.00, categorizing the stock as a "hold." In total, while some analysts have a "buy" or "strong buy", the consensus rating appears to lean towards a "hold." The average target price gathered from these assessments is $1,148.56.

Insider Activity

On the insider front, VP Laurie R. Thomson sold 125 shares of W.W. Grainger on November 13 at an average price of $1,206.03, amounting to $150,753.75. Following this transaction, the VP retains ownership of 675 shares valued at approximately $814,070.25, a 15.63% reduction in their overall position in the company.

Company Profile

W.W. Grainger, Inc., alongside its subsidiaries, distributes maintenance, repair, and operating products and services primarily within North America, Japan, the United Kingdom, and abroad. The firm operates through two primary segments: High-Touch Solutions N.A. and Endless Assortment, providing safety equipment, material handling devices, cleaning supplies, and various hand tools.

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