Graco Inc. (NYSE:GGG) Stock Has Average Price Target of $87.40 According to Analysts

Key Points

• Analysts have a cautious view of Graco: Five of eight brokerages rate the stock “Hold,” while three recommend buying it. The average 12-month price target is $87.40.
• Graco shares opened at $68.62, well below the analyst target, with a 52-week range of $65.96 to $95.69. Several firms recently lowered their price targets, including RBC and BNP Paribas Exane.
• Graco’s latest quarterly results slightly missed expectations, with earnings of $0.81 per share and revenue of $586.39 million, although revenue grew 7.9% year over year. The company also declared a quarterly dividend of $0.295 per share, representing a 1.7% yield.

Shares of Graco Inc. (NYSE:GGG - Get Free Report) have earned an average rating of "Hold" from the eight brokerages that are presently covering the firm, Marketbeat.com reports. Five research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $87.40.

GGG has been the topic of a number of research reports. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $82.00 price target (down from $95.00) on shares of Graco in a research note on Friday, October 23rd. DA Davidson reiterated a "neutral" rating and set a $85.00 price objective on shares of Graco in a research note on Monday, July 27th. Robert W. Baird set a $80.00 target price on Graco in a report on Friday, October 23rd. Wolfe Research cut Graco from an "outperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. Finally, BNP Paribas Exane reduced their target price on shares of Graco from $95.00 to $85.00 and set an "outperform" rating for the company in a research report on Friday, October 23rd.

Graco Price Performance

Graco stock opened at $68.62 on Friday. The stock has a market capitalization of $11.00 billion, a P/E ratio of 22.06, a P/E/G ratio of 2.09 and a beta of 0.89. The company's fifty day moving average price is $77.12 and its 200 day moving average price is $81.16. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.24 and a current ratio of 2.12. Graco has a 1 year low of $65.96 and a 1 year high of $95.69.

Graco (NYSE:GGG - Get Free Report) last posted its quarterly earnings data on Wednesday, October 21st. The industrial products company reported $0.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.83 by ($0.02). Graco had a net margin of 22.40% and a return on equity of 20.13%. The company had revenue of $586.39 million for the quarter, compared to analysts' expectations of $590.17 million. During the same period in the previous year, the business earned $0.73 earnings per share. The business's revenue for the quarter was up 7.9% on a year-over-year basis. As a group, equities research analysts anticipate that Graco will post 3.22 earnings per share for the current fiscal year.

Graco Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 4th. Shareholders of record on Monday, October 19th will be issued a $0.2950 dividend. This represents a $1.18 annualized dividend and a yield of 1.7%. The ex-dividend date is Monday, October 19th. Graco's dividend payout ratio is presently 37.94%.

Institutional Trading of Graco

A number of hedge funds and other institutional investors have recently modified their holdings of GGG. Quantbot Technologies LP acquired a new position in Graco in the 2nd quarter valued at about $16,632,000. Nykredit A S purchased a new position in shares of Graco in the second quarter valued at approximately $6,051,000. Hsbc Holdings PLC purchased a new position in shares of Graco in the second quarter valued at approximately $100,157,000. Bank of America Corp DE acquired a new position in shares of Graco in the second quarter valued at approximately $57,954,000. Finally, Amundi increased its stake in Graco by 7.5% during the 2nd quarter. Amundi now owns 2,090,184 shares of the industrial products company's stock worth $158,039,000 after buying an additional 146,032 shares during the period. 93.88% of the stock is owned by institutional investors and hedge funds.

About Graco

Graco Inc is a global manufacturer of equipment used to move, measure, control, dispense and apply fluids and other materials. Its products are used in industrial, commercial and residential applications involving paints, coatings, sealants, adhesives, lubricants, chemicals and other fluids.

The company's product portfolio includes pumps, valves, meters, regulators, fluid-management systems, lubrication equipment, spray-applied coating and finishing systems, sealant and adhesive equipment, and contractor-oriented painting and texture application tools.

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