Arden Trust Co, a well-known institutional investor, has revealed that it lowered its holdings in W.W. Grainger, Inc (NYSE:GWW) by 22.8% during the first quarter of this year according to its most recent Form 13F filing with the Securities and Exchange Commission. The sale amounted to 332 shares which reduced the company’s total value down to a worth of $773,000 at the end of the quarter.
This news comes following VP Laurie R. Thomson’s recent sale of 476 shares in a transaction on May 2nd for an average price of $683.74 per share, resulting in a total sum of $325,460.24; she now owns only 1,731 shares valued at $1,183,553.940 after completion of the sale. The insider activity disclosed this change in ownership through a filing with the SEC.
W.W Grainger opened on June 26th at a price of $737.90 per share with an impressive market cap standing at $37.02 billion and with PE ratio and P/E/G ratio values recorded as 22.63 and 1.58 respectively; this shows that despite Arden Trust Co’s decision there remains some bullish sentiment amongst investors.
The firm has been performing well with a year-to-date percentage gain of almost sixteen percent while offering a sturdy debt-to-equity ratio of .75 and quick and current ratios of 1.53 and 2.70 making it one to look out for in the near future.
It is important to note that currently corporate insiders own roughly ten percent of W.W Grainger which boosts investor confidence even further as they have skin-in-the-game so-to-speak.
In summary, Arden Trust Co’s decisions may be perceived as indicative or cautionary by some investors; however VP Thomson’s insider selling is not enough to drive away investors right now who see the company as a solid investment opportunity amidst current market trends.
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Confidence Rises as W.W. Grainger’s Stock Gets Upgraded Rating and Institutional Investment Increases
W.W. Grainger: Institutional Investors Show Confidence Amid Upgraded Rating
As of June 26, 2023, institutional investors own a significant majority of W.W. Grainger’s stock at 72.65%. Clear Street Markets LLC bought a new position in the company during the fourth quarter worth $26,000 while Spire Wealth Management boosted its holdings by over 200%. Meanwhile, Trifecta Capital Advisors LLC and Retirement Group LLC have both increased their stakes in W.W. Grainger. Coppell Advisory Solutions Corp also bought into the industrial products company in Q4.
These moves come after equities research analysts upgraded their ratings on W.W. Grainger’s stock. Oppenheimer raised its price target from $785 to $800 while StockNews.com initiated coverage with a “buy” rating. However, Morgan Stanley lifted its target price only slightly from $537 to $555.
W.W. Grainger executives have also been active recently with VP Laurie R. Thomson selling off almost 500 shares at an average price of over $680 each for a total value north of $325k.
Despite these changes, W.W Grainger posted strong Q1 earnings results back in April which saw revenue up almost 12% YoY and beating analyst estimates at over $4 billion for the quarter while EPS came in at an impressive $9.61 per share.
Investors will likely be pleased to see that W.W Grainger has also boosted its recent quarterly dividend from $1.72 per share to $1.86 – representing an annualized dividend yield of over 1%. It is currently forecasted that it will post EPS figures around the ballpark range of around $36 on fiscal year-end earnings reports.
The steps taken by both institutional investors and company management have shown confidence in the underlying strength of W.W Grainger as it continues to prove its competitiveness within the crowded industrial products market space, providing more opportunity for long-term investors looking to the future.
