Brady (NYSE:BRC) Shares Gap Up on Strong Earnings

Key Points

• Brady Corporation's shares gapped up from $77.70 to $83.00 after reporting an earnings per share (EPS) of $1.26, beating estimates by $0.03.
• The company announced a quarterly dividend increase to $0.245 per share, marking an annualized dividend of $0.98 with a yield of 1.2%.
• Analysts have upgraded Brady's stock to a "Strong Buy" rating, reflecting positive sentiment in the market regarding the company's performance.

Brady Corporation (NYSE:BRC - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $77.70, but opened at $83.00. Brady shares last traded at $81.26, with a volume of 45,659 shares changing hands.

The industrial products company reported $1.26 earnings per share for the quarter, beating the consensus estimate of $1.24 by $0.02. The business had revenue of $397.28 million for the quarter, compared to the consensus estimate of $384.67 million. Brady had a net margin of 12.50% and a return on equity of 19.29%. The business's quarterly revenue was up 15.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.19 earnings per share. Brady has set its FY 2026 guidance at 4.850-5.150 EPS.

Brady Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Friday, October 10th will be paid a $0.245 dividend. This represents a $0.98 annualized dividend and a dividend yield of 1.2%. This is a positive change from Brady's previous quarterly dividend of $0.24. The ex-dividend date is Friday, October 10th. Brady's dividend payout ratio (DPR) is 24.94%.

Analyst Ratings Changes

Several brokerages recently commented on BRC. Sidoti upgraded shares of Brady to a "strong-buy" rating in a research note on Monday, May 19th. Wall Street Zen upgraded shares of Brady from a "hold" rating to a "buy" rating in a research note on Friday, August 22nd. One research analyst has rated the stock with a Strong Buy rating, According to MarketBeat, the stock currently has a consensus rating of "Strong Buy".

Hedge Funds Weigh In On Brady

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Quarry LP acquired a new position in Brady during the first quarter worth about $25,000. EverSource Wealth Advisors LLC raised its position in Brady by 89.0% during the second quarter. EverSource Wealth Advisors LLC now owns 684 shares of the industrial products company's stock worth $46,000 after acquiring an additional 322 shares during the last quarter. Tower Research Capital LLC TRC raised its position in Brady by 156.1% during the second quarter. Tower Research Capital LLC TRC now owns 1,014 shares of the industrial products company's stock worth $69,000 after acquiring an additional 618 shares during the last quarter. Blue Trust Inc. raised its position in Brady by 23.9% during the second quarter. Blue Trust Inc. now owns 1,037 shares of the industrial products company's stock worth $70,000 after acquiring an additional 200 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Brady in the first quarter valued at approximately $74,000. Institutional investors and hedge funds own 76.28% of the company's stock.

Brady Trading Down 2.0%

The business's 50-day moving average price is $72.07 and its two-hundred day moving average price is $70.67. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.88 and a quick ratio of 1.27. The firm has a market cap of $3.80 billion, a price-to-earnings ratio of 20.43 and a beta of 0.83.

About Brady

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The company offers materials, printing systems, RFID, and bar code scanners for product identification, brand protection labeling, work in process labeling, finished product identification, and industrial track and trace applications; safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, lockout/tagout device, and software and services for safety compliance auditing, procedure writing, and training; and hand-held printers, wire markers, sleeves, and tags for wire identification.