MSC Industrial Direct Co Inc (MSM) Posts Earnings Beat But Offers Soft Guidance: Should You Buy?

What does the smart money think about MSC Industrial Direct Co Inc (NYSE:MSM)?

There wasn’t much activity among the top holders of the stock during the first quarter of 2015. A number of the hedge funds that were invested in the stock either increased or reduced their positions in the stock, but only slightly. The biggest shareholder at the end of the first quarter was Robert Joseph Caruso’s Select Equity Group, which held a total of 4.04 million shares after raising its position in the stock by 5%. The stock represents 2.65% of its total portfolio. Other notable shareholders were William Von Mueffling‘s Cantillon Capital Management with 2.33 million shares, and Chuck Royce‘s Royce & Associates with a total of 1.43 million shares.

Among the top ten biggest shareholders of the stock, notable sellers were billionaire Ken Griffin’s Citadel Investment Group, which reduced its stake by 29% and billionaire Jim Simons’ Renaissance Technologies, which reduced its position by 48%.

Given the insider purchases which we consider a strong indicator of good future performance, followed by the company’s earnings beat, we believe this stock is a solid investment at this time, considering also its 2.30% dividend yield, even given the soft future guidance.

Disclosure: None