Is Buying W W Grainger Inc Here a Winning Strategy? Option Traders Like The Stock

 Is Buying W W Grainger Inc Here a Winning Strategy? Option Traders Like The Stock

In today’s session W W Grainger Inc (GWW) registered an unusually high (200) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious GWW increase. With 200 contracts traded and 4334 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: GWW170120C00210000 closed last at: $17.9 or 2.7% down. About 40,650 shares traded hands. W W Grainger Inc (NYSE:GWW) has declined 1.97% since April 22, 2016 and is downtrending. It has underperformed by 7.38% the S&P500.

Analysts await W W Grainger Inc (NYSE:GWW) to report earnings on January, 25 before the open. They expect $2.42 earnings per share, down 2.81% or $0.07 from last year’s $2.49 per share. GWW’s profit will be $143.88 million for 23.25 P/E if the $2.42 EPS becomes a reality. After $3.06 actual earnings per share reported by W W Grainger Inc for the previous quarter, Wall Street now forecasts -20.92% negative EPS growth.

W W Grainger Inc (NYSE:GWW) Ratings Coverage

Out of 11 analysts covering W.W. Grainger (NYSE:GWW), 3 rate it a “Buy”, 2 “Sell”, while 6 “Hold”. This means 27% are positive. W.W. Grainger has been the topic of 47 analyst reports since July 21, 2015 according to StockzIntelligence Inc. UBS initiated W W Grainger Inc (NYSE:GWW) on Thursday, September 17 with “Neutral” rating. The stock of W W Grainger Inc (NYSE:GWW) earned “Neutral” rating by Credit Suisse on Friday, June 17. Stifel Nicolaus maintained the shares of GWW in a report on Friday, November 13 with “Buy” rating. Morgan Stanley downgraded it to “Equal-Weight” rating and $236 target price in Tuesday, October 20 report. Stifel Nicolaus maintained it with “Buy” rating and $251 target price in Tuesday, March 8 report. The stock has “Buy” rating given by Stifel Nicolaus on Thursday, October 1. The rating was maintained by RBC Capital Markets with “Underperform” on Friday, November 13. The stock has “Equal-Weight” rating given by Barclays Capital on Monday, October 5. The stock of W W Grainger Inc (NYSE:GWW) has “Neutral” rating given on Monday, August 24 by Robert W. Baird. Credit Suisse maintained the shares of GWW in a report on Wednesday, October 19 with “Neutral” rating.

According to Zacks Investment Research, “Grainger offers a breadth of MRO solutions by combining products, services, and information. The company tailors its capabilities toward the objective of providing the lowest total cost MRO solution to select customer groups. The Branch-based Distribution Businesses serve immediate and/or planned purchase MRO needs. The Digital Businesses offer a broad array of indirect materials and related information to meet the needs of businesses looking to reduce process costs through Internet-enabled solutions.”

Insitutional Activity: The institutional sentiment increased to 0.99 in 2016 Q2. Its up 0.12, from 0.87 in 2016Q1. The ratio improved, as 52 funds sold all W W Grainger Inc shares owned while 189 reduced positions. 40 funds bought stakes while 169 increased positions. They now own 49.10 million shares or 9.27% less from 54.11 million shares in 2016Q1.
Hsbc Hldg Plc, a United Kingdom-based fund reported 56,367 shares. Compass Capital Mngmt holds 86,250 shares or 3.75% of its portfolio. Loring Wolcott & Coolidge Fiduciary Advsrs Llp Ma accumulated 0.11% or 21,791 shares. Herndon Capital Mgmt Ltd Liability last reported 0% of its portfolio in the stock. Gulf Intl Commercial Bank (Uk), a United Kingdom-based fund reported 16,636 shares. Commerzbank Aktiengesellschaft Fi holds 0% of its portfolio in W W Grainger Inc (NYSE:GWW) for 1,495 shares. Clifford Swan Counsel Ltd Llc has 1,548 shares for 0.02% of their US portfolio. Keybank Association Oh last reported 0.03% of its portfolio in the stock. The Florida-based Finemark Fincl Bank Trust has invested 0.01% in W W Grainger Inc (NYSE:GWW). Moreover, Dekabank Deutsche Girozentrale has 0.01% invested in W W Grainger Inc (NYSE:GWW) for 2,548 shares. Diam Limited holds 0.02% or 5,885 shares in its portfolio. Bokf Na accumulated 15,671 shares or 0.13% of the stock. Moreover, Crawford Inv Counsel Incorporated has 1.25% invested in W W Grainger Inc (NYSE:GWW) for 138,510 shares. Cooke Bieler Lp has 289,766 shares for 1.46% of their US portfolio. Creative Planning holds 0.01% of its portfolio in W W Grainger Inc (NYSE:GWW) for 6,748 shares.

Insider Transactions: Since May 31, 2016, the stock had 0 insider buys, and 2 insider sales for $779,523 net activity. On Tuesday, July 26 HIGH JOSEPH C sold $378,840 worth of the stock or 1,722 shares. Brown Laura D also sold $400,683 worth of W W Grainger Inc (NYSE:GWW) shares.

W.W. Grainger, Inc. is a distributor of maintenance, repair and operating (MRO) supplies and other related services and products. The company has a market cap of $13.38 billion. The Firm offers its services and products to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America. It has a 20.24 P/E ratio. Grainger operates through two divisions: the United States and Canada.

GWW Company Profile

W.W. Grainger, Inc. (Grainger), incorporated on December 27, 1928, is a distributor of maintenance, repair and operating (MRO) supplies and other related services and products. The Firm offers its services and products to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America. Grainger operates through two divisions: the United States and Canada. Grainger’s centralized business support functions provide coordination and guidance in the areas of accounting and finance, business development, communications and investor relations, compensation and benefits, information systems, health and safety, global supply chain functions, human resources, risk management, internal audit, legal, real estate, security, tax and treasury. The Company’s others businesses also include The Fabory Group (Fabory), MonotaRO Co. (MonotaRO), Grainger Mexico and Zoro Tools, Inc. (Zoro).

More news for W W Grainger Inc (NYSE:GWW) were recently published by: Nasdaq.com, which released: “W.W. Grainger Inc. (GWW) Has Dropped To An 8-Month Low After Guidance Narrowed” on October 18, 2016. Forbes.com‘s article titled: “Ex-Dividend Reminder: W.W. Grainger, United Parcel Service and Woodward” and published on November 07, 2016 is yet another important article.

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