Buckingham analyst Robert Barry raised his price target for Grainger to $342 from $329 and maintained a Neutral rating. Despite his estimate cuts, Barry tells investors in a research note that he thinks the Street estimate for 2020 looks achievable. On the shares, Barry says he would be more constructive if he had greater confidence in an accelerating U.S. outgrowth story or a more robust margin story and thinks valuation looks reasonable, but not compelling.

W.W. Grainger's board of directors approved a quarterly cash dividend of $2.05 per share, an increase of 10% from the most recent company dividend of $1.86 per share. The dividend is payable on June 1, to shareholders of record on May 13. In addition, the board approved the repurchase of up to 5M shares of the company's outstanding common stock, replacing the company's existing repurchase authorization. The new repurchase authorization has no expiration date. "2024 is on track to be our 53rd consecutive year of increased dividends, upholding Grainger's long-standing commitment to our shareholders. This increase, together with our updated share repurchase authorization, reinforces our ability to continue investing in the business while also returning excess cash to shareholders," said D.G. Macpherson, Grainger CEO.