W.W. Grainger Inc. (GWW): A Technical View


As of Wednesday close, W.W. Grainger Inc.’s (NYSE:GWW) stock was down -$1.15, moving down -0.19 percent to $604.32. The average number of shares traded per day over the past five days has been 217,220 shares. 4 times new highs have been achieved over the past 5 days, with a $15.43 gain in that time frame. In the last twenty days, the average volume was 332,995, while in the previous 50 days, it was 352,994.

Since last month, GWW stock rose 13.85%. Shares of the company fell to $521.33 on 10/24/22, the lowest level in the past month. A 52-week high of $612.06 was reached on 11/10/22 after having rallying from a 52-week low of $440.48. Since the beginning of this year, GWW’s stock price has risen by 16.61% or $86.08, and marked a new high 25 times. However, the stock has declined by -1.26% since its 52-week high.

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GWW stock investors should be aware that W.W. Grainger Inc. (GWW) stock had its last reported insider trading activity 113 days ago on Aug 03. Thomson Laurie R, the VP, Controller of the company, disposed of 54 shares for $541.44 on Aug 03. It resulted in a $29,238 divestment by the insider. Robbins Paige K sold 2,330 shares at an average price of $500.03 on Jul 28. The insider now owns 7,212 shares following the transaction. On Jul 28, Sr. VP Robbins Paige K sold 2,330 shares at $500.03 apiece. The transaction was valued at $1,165,078.

Valuation Metrics

Right now, W.W. Grainger Inc. (GWW) has a P/E ratio of about 21.45. The stock’s beta is 1.23. Besides these, the trailing price-to-sales (P/S) ratio of 2.05, the price-to-book (PB) ratio of 13.30, and the price-to-cash flow ratio of 56.36 may also be considered.

The latest dividend of $1.72 per share was paid out, remained unchanged from last year’s $1.72. On Wednesday April 27 2022, a $0.10 dividend increase was announced.

Financial Health

In the three months ended June 29, W.W. Grainger Inc.’s quick ratio stood at 1.50, while its current ratio was 2.60, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.99, and the total debt-to-equity ratio was 1.00. On the profitability front, the trailing twelve-month gross margin is 37.80% percent. In the year ended June 29, operating margins totaled 14.10%. Based on annual data, GWW earned $4.72 billion in gross profit and brought in $13.02 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 27.80%. Return on equity (ROE) for the past 12 months was 68.30%.

In W.W. Grainger Inc.’s quarter-end financial report for June 29, it reported total debt of $2.29 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. GWW’s revenue rose 14.46% to $3.84 billion during the quarter, while net income inched up to $3.94 billion. While analysts expected W.W. Grainger Inc. to report $6.65 quarterly earnings, the actual figure was $7.19 per share, beating the consensus estimate by 8.10%. During the quarter, the company generated $655.0 million in EBITDA. The liabilities of W.W. Grainger Inc. were 4.64 billion at the end of its most recent quarter ended June 29, and its total debt was $2.7 billion. The value of shareholders’ equity is $50.53 million.

Technical Picture

This quick technical analysis looks at W.W. Grainger Inc.’s (GWW) price momentum. With a historical volatility rate of 21.94%, the RSI 9-day stood at 66.18% on 23 November.

With respect to its five-day moving average, the current W.W. Grainger Inc. price is up by +2.62% percent or $15.43. At present, GWW shares trade +13.78% above its 20-day simple moving average and +32.77% percent above its 100-day simple moving average. However, the stock is currently trading approximately +10.23% above its SMA50 and +25.30% above its SMA200.

Stochastic coefficient K was 77.81% and Stochastic coefficient D was 71.16%, while ATR was 13.38. Given the Stochastic reading of 78.26% for the 14-day period, the RSI (14) reading has been calculated as 64.53%. As of today, the MACD Oscillator reading stands at 9.74, while the 14-day reading stands at 8.28.

Analyst Ratings

W.W. Grainger Inc. downgraded its rating on W.W. Grainger Inc. (NYSE: GWW) to a Neutral in a note to investors on November 15, 2022. The analysts firm previously had an Overweight rating on the stock.

With a median target price of $632.50, the current consensus forecast for the stock is $439.00 – $670.00. Based on these forecasts, analysts predict W.W. Grainger Inc. (GWW) will achieve an average price target of $603.67.


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