Key Points
- Insider sale: Director J. Kevin Gilligan sold 12,870 shares on February 3 at an average price of $89.07, generating $1,146,330.90, as disclosed in an SEC Form 4.
- Quarterly results: Graco reported Q1 EPS of $0.77 (in line with estimates) and revenue of $593.16 million, up 8.1% year-over-year, while analysts forecast ~3.06 EPS for the current year and an average price target near $96.50.
- Capital returns: The company raised its quarterly dividend to $0.295 (annualized $1.18, ~1.3% yield) and authorized a 15,000,000-share repurchase program.
Graco Inc. (NYSE:GGG - Get Free Report) EVP Kathryn Schoenrock sold 2,223 shares of the firm's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $88.06, for a total value of $195,757.38. Following the transaction, the executive vice president owned 7,846 shares of the company's stock, valued at $690,918.76. This trade represents a 22.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.
Graco Stock Performance
Shares of GGG opened at $91.66 on Thursday. The stock has a 50-day simple moving average of $84.69 and a 200-day simple moving average of $84.01. The stock has a market capitalization of $15.20 billion, a PE ratio of 29.66, a PEG ratio of 2.79 and a beta of 1.08. Graco Inc. has a 1 year low of $72.06 and a 1 year high of $91.80.
Graco (NYSE:GGG - Get Free Report) last posted its earnings results on Monday, January 26th. The industrial products company reported $0.77 EPS for the quarter, meeting the consensus estimate of $0.77. Graco had a return on equity of 19.49% and a net margin of 23.33%.The firm had revenue of $593.16 million for the quarter, compared to analyst estimates of $591.99 million. During the same quarter in the prior year, the company posted $0.64 earnings per share. Graco's revenue for the quarter was up 8.1% compared to the same quarter last year. Analysts predict that Graco Inc. will post 3.06 EPS for the current year.
Graco declared that its Board of Directors has initiated a share repurchase program on Friday, December 5th that permits the company to buyback 15,000,000 outstanding shares. This buyback authorization permits the industrial products company to purchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its stock is undervalued.
Graco Increases Dividend
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, February 4th. Investors of record on Monday, January 19th were given a $0.295 dividend. This is a positive change from Graco's previous quarterly dividend of $0.28. The ex-dividend date was Friday, January 16th. This represents a $1.18 dividend on an annualized basis and a yield of 1.3%. Graco's payout ratio is 38.19%.
Analyst Upgrades and Downgrades
Several brokerages recently issued reports on GGG. KeyCorp reaffirmed a "sector weight" rating on shares of Graco in a report on Tuesday, January 27th. DA Davidson restated a "neutral" rating and set a $85.00 target price on shares of Graco in a research report on Monday. Jefferies Financial Group raised their price target on Graco from $100.00 to $105.00 and gave the stock a "buy" rating in a research note on Wednesday, January 28th. Royal Bank Of Canada boosted their price objective on shares of Graco from $97.00 to $100.00 and gave the company an "outperform" rating in a research note on Wednesday, January 28th. Finally, Robert W. Baird set a $96.00 target price on Graco in a report on Wednesday, January 28th. Three investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Graco currently has a consensus rating of "Hold" and an average price target of $96.50.
Check Out Our Latest Stock Analysis on Graco
Institutional Trading of Graco
Several institutional investors have recently added to or reduced their stakes in the business. Root Financial Partners LLC bought a new position in Graco in the third quarter worth about $29,000. NewSquare Capital LLC lifted its holdings in shares of Graco by 320.7% in the 2nd quarter. NewSquare Capital LLC now owns 345 shares of the industrial products company's stock worth $30,000 after purchasing an additional 263 shares during the last quarter. CX Institutional boosted its position in Graco by 316.7% during the 3rd quarter. CX Institutional now owns 475 shares of the industrial products company's stock valued at $40,000 after purchasing an additional 361 shares during the period. Assetmark Inc. grew its stake in Graco by 42.6% during the 3rd quarter. Assetmark Inc. now owns 465 shares of the industrial products company's stock worth $40,000 after buying an additional 139 shares during the last quarter. Finally, Field & Main Bank acquired a new stake in Graco in the fourth quarter worth $41,000. Institutional investors own 93.88% of the company's stock.
Graco Company Profile
(
Get Free Report)
Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco's solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.
The company's product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.
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