$11M Insider Bet on Dip Pays Off – MSC Chairman Up Nearly $1M as Stock Surges

MSC Industrial Direct Co., Inc. (MSM:US) is a leading distributor of metalworking and maintenance, repair, and operations (MRO) products, serving customers across North America. Established in 1941, the company has built a strong reputation for offering an expansive catalog of more than 2 million industrial and metalworking tools. Its widespread network includes fulfillment centers in the United States, Canada, Mexico, and the UK. 

Despite its strong market presence, MSC has struggled with weakening sales and profit declines in recent quarters. As of April 2025, it holds a market capitalization of approximately $4.24 billion, making it a mid-cap stock in the industrial distribution sector.

Insider Confidence Surges – A $11M Vote of Faith

In a notable show of confidence, Chairman and large shareholder Mitchell Jacobson acquired a substantial number of MSC shares — a rare move after a year of muted insider activity.

On April 7 and April 8, 2025, Jacobson purchased 159,193 shares at an average price of $69.73 per share, amounting to a total investment of approximately $11.10 million. His timing couldn’t have been better — the purchase came as the stock dipped to multi-month lows. As of today, MSC shares are trading at $76, putting Jacobson up nearly $975,000 on paper in just over two weeks.

Who Is Mitchell Jacobson – And Why It Matters

Mitchell Jacobson has been a central figure in MSC Industrial’s leadership and remains one of its largest shareholders. His latest $11 million purchase boosts his total holdings to over 1.95 million shares — a clear signal of his continued confidence in the company’s long-term prospects. Notably, this marks the first insider buy in MSC stock in over two years, making the timing particularly significant.

What sets this trade apart isn’t just the dollar amount, but Jacobson’s track record. Several of his past insider buys have closely preceded meaningful upward moves in the stock. While history isn’t a guarantee, the pattern is hard to ignore. With deep insight into the company’s strategy and operations, Jacobson’s timing rarely appears coincidental — and this latest move may reflect renewed optimism about MSC’s future growth trajectory.

Financial Snapshot 

Despite this vote of confidence from the inside, MSC’s recent financial performance reflects notable headwinds. In its Q2 fiscal 2025 report, the company reported net sales of $891.7 million, a 4.7% decline compared to the same period last year. Net income also fell, dropping to $39.3 million from $61.8 million year-over-year. Earnings per share decreased accordingly, from $1.10 to $0.70. However, MSC continues to demonstrate financial resilience, maintaining a healthy gross margin of 40.96% and a relatively low debt-to-equity ratio of 0.43, suggesting that despite falling revenue, the company remains on stable financial footing.

Institutional Buying and Broader Market Trends

Mitchell Jacobson’s bullish stance is further supported by increasing institutional interest. Several major investment firms have recently increased their holdings in MSC. Franklin Resources Inc., for instance, raised its position by 29.7% in the fourth quarter of 2024. Other significant stakeholders include Norges Bank, Royce & Associates, Charles Schwab Investment Management, and Boston Trust Walden Corp. As it stands, 79.26% of MSC’s shares are held by institutional investors and hedge funds, while insiders hold 18.30% a relatively high figure for a company in this sector. 

Moreover, MSC has emerged as one of the top five mid- and large-cap stocks witnessing insider buying activity following President Trump’s April 2025 tariff announcement, which imposed a baseline 10% tariff on most imports. This policy change could work in MSC’s favor, as approximately 95% of its sales are generated within the United States, potentially making it more competitive compared to import-heavy peers.

Conclusion 

With revenues under pressure and broader industrial headwinds in play, MSC Industrial Direct finds itself at a pivotal moment. But the $11 million insider buy by Mitchell Jacobson — made right as the stock hit a dip — has not only reversed a long drought in insider activity, it’s also already delivered nearly $1 million in gains.

Combined with renewed institutional interest and a macro tailwind from domestic-focused trade policy, Jacobson’s purchase is more than just a vote of confidence. It’s a potential turning point — and investors may want to take note when insiders with his track record step in at just the right time.