DA Davidson Has Negative Outlook of Graco FY2025 Earnings

Key Points

• DA Davidson has revised its FY2025 earnings per share forecast for Graco from $3.00 to $2.95, which is lower than the current consensus estimate of $3.06.
• Graco recently reported $0.75 earnings per share for its latest quarter, missing analysts' expectations of $0.78 and generating revenues of $571.81 million, below the consensus estimate.
• The company declared a quarterly dividend of $0.275 per share, which will be paid on August 6th, and has a current dividend yield of 1.32%.

Graco Inc. (NYSE:GGG - Free Report) - Research analysts at DA Davidson decreased their FY2025 EPS estimates for Graco in a research note issued on Tuesday, July 29th. DA Davidson analyst M. Summerville now anticipates that the industrial products company will post earnings per share of $2.95 for the year, down from their previous estimate of $3.00. The consensus estimate for Graco's current full-year earnings is $3.06 per share. DA Davidson also issued estimates for Graco's FY2026 earnings at $3.20 EPS.

Graco (NYSE:GGG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The industrial products company reported $0.75 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.78 by ($0.03). Graco had a return on equity of 19.05% and a net margin of 22.26%. The business had revenue of $571.81 million for the quarter, compared to analyst estimates of $590.57 million. During the same quarter last year, the firm posted $0.77 EPS. The company's revenue was up 3.4% compared to the same quarter last year.

GGG has been the topic of a number of other reports. Robert W. Baird lifted their target price on Graco from $88.00 to $91.00 and gave the stock a "neutral" rating in a report on Friday, July 25th. Wolfe Research began coverage on shares of Graco in a report on Wednesday, June 18th. They set an "outperform" rating for the company. Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $94.50.

Graco Stock Performance

Shares of GGG stock traded down $1.40 during midday trading on Thursday, reaching $82.58. 666,400 shares of the company were exchanged, compared to its average volume of 743,640. Graco has a 12 month low of $72.06 and a 12 month high of $92.86. The company has a market cap of $13.68 billion, a P/E ratio of 29.28, a PEG ratio of 2.84 and a beta of 1.06. The company's 50 day moving average price is $85.64 and its two-hundred day moving average price is $84.17.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. LPL Financial LLC grew its position in Graco by 2.7% during the fourth quarter. LPL Financial LLC now owns 68,194 shares of the industrial products company's stock worth $5,748,000 after buying an additional 1,804 shares in the last quarter. Pictet Asset Management Holding SA raised its stake in shares of Graco by 18.5% in the fourth quarter. Pictet Asset Management Holding SA now owns 101,103 shares of the industrial products company's stock valued at $8,522,000 after purchasing an additional 15,806 shares in the last quarter. Orion Portfolio Solutions LLC lifted its position in Graco by 1.0% in the fourth quarter. Orion Portfolio Solutions LLC now owns 14,548 shares of the industrial products company's stock worth $1,226,000 after purchasing an additional 138 shares during the period. Allstate Corp acquired a new stake in Graco during the fourth quarter worth $410,000. Finally, O Shaughnessy Asset Management LLC increased its holdings in Graco by 26.7% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 14,407 shares of the industrial products company's stock valued at $1,214,000 after buying an additional 3,040 shares during the period. 93.88% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Graco

In related news, insider David J. Thompson sold 3,588 shares of the firm's stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $86.23, for a total value of $309,393.24. Following the transaction, the insider directly owned 27,520 shares in the company, valued at approximately $2,373,049.60. This trade represents a 11.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 2.19% of the company's stock.

Graco Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 6th. Stockholders of record on Monday, July 21st will be paid a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Monday, July 21st. Graco's payout ratio is presently 39.01%.

About Graco

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.