Graco (NYSE:GGG) Shares Gap Down on Disappointing Earnings

Shares of Graco Inc. (NYSE:GGG) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $89.35, but opened at $82.95. Graco shares last traded at $84.19, with a volume of 385,607 shares traded.

The industrial products company reported $0.65 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.74 by ($0.09). Graco had a net margin of 23.15% and a return on equity of 23.43%. The company had revenue of $492.19 million for the quarter, compared to analyst estimates of $536.19 million. During the same quarter in the prior year, the firm earned $0.74 EPS. The company’s revenue for the quarter was down 7.1% compared to the same quarter last year.

Graco Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Investors of record on Monday, April 15th will be given a dividend of $0.255 per share. The ex-dividend date is Friday, April 12th. This represents a $1.02 dividend on an annualized basis and a yield of 1.24%. Graco’s dividend payout ratio is currently 35.17%.

Analyst Ratings Changes

GGG has been the subject of a number of analyst reports. StockNews.com lowered Graco from a “buy” rating to a “hold” rating in a research report on Friday. William Blair reiterated a “market perform” rating on shares of Graco in a research report on Friday. Robert W. Baird reduced their price target on Graco from $90.00 to $87.00 and set a “neutral” rating for the company in a research report on Friday. Royal Bank of Canada boosted their price target on Graco from $91.00 to $93.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 31st. Finally, Jefferies Financial Group boosted their price target on Graco from $90.00 to $100.00 and gave the stock a “buy” rating in a research report on Thursday, January 11th. Four investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat.com, Graco has an average rating of “Hold” and an average price target of $85.60.

Insider Transactions at Graco

In other news, insider Christian E. Rothe sold 15,000 shares of the business’s stock in a transaction on Friday, February 23rd. The stock was sold at an average price of $90.04, for a total transaction of $1,350,600.00. Following the sale, the insider now directly owns 25,583 shares of the company’s stock, valued at $2,303,493.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, VP Angela F. Wordell sold 3,588 shares of the company’s stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $93.60, for a total transaction of $335,836.80. Following the transaction, the vice president now directly owns 12,725 shares of the company’s stock, valued at $1,191,060. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Christian E. Rothe sold 15,000 shares of the company’s stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $90.04, for a total value of $1,350,600.00. Following the transaction, the insider now directly owns 25,583 shares in the company, valued at $2,303,493.32. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 48,378 shares of company stock valued at $4,376,528. Corporate insiders own 2.63% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Tobam grew its stake in Graco by 2,330.8% in the fourth quarter. Tobam now owns 316 shares of the industrial products company’s stock valued at $27,000 after purchasing an additional 303 shares in the last quarter. Sound Income Strategies LLC bought a new stake in shares of Graco during the 4th quarter worth about $28,000. Fortitude Family Office LLC bought a new stake in shares of Graco during the 4th quarter worth about $29,000. Rise Advisors LLC bought a new stake in shares of Graco during the 1st quarter worth about $38,000. Finally, Allspring Global Investments Holdings LLC boosted its stake in shares of Graco by 3,063.2% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 601 shares of the industrial products company’s stock worth $44,000 after acquiring an additional 582 shares in the last quarter. Hedge funds and other institutional investors own 93.88% of the company’s stock.

Graco Stock Performance

The company has a market cap of $13.91 billion, a P/E ratio of 28.47, a P/E/G ratio of 2.85 and a beta of 0.81. The firm has a 50 day moving average price of $91.14 and a 200-day moving average price of $84.84.

Graco Company Profile

Graco Inc designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors.