Gorman-Rupp Company (The) (NYSE:GRC) Increases Dividend to $0.20 Per Share

Key Points

• Gorman-Rupp raised its quarterly dividend 5.3% to $0.20 per share, or $0.80 annualized, implying a 1.1% yield. The dividend is payable December 10 to shareholders of record November 13.
• The company reported quarterly EPS of $0.86, beating the $0.70 consensus estimate, while revenue of $193.25 million also exceeded expectations of $181.55 million.
• Analyst sentiment remains cautious, with one Buy and two Hold ratings producing a consensus Hold rating; shares recently traded at $73.67, well below their 52-week high of $92.78.

Gorman-Rupp Company (The) (NYSE:GRC - Get Free Report) declared a quarterly dividend on Friday, October 23rd. Stockholders of record on Friday, November 13th will be paid a dividend of $0.20 per share by the industrial products company on Thursday, December 10th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Friday, November 13th. This is a 5.3% increase from Gorman-Rupp's previous quarterly dividend of $0.19.

Gorman-Rupp has a payout ratio of 31.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Gorman-Rupp to earn $3.11 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 24.4%.

Gorman-Rupp Stock Performance

Shares of NYSE GRC traded up $3.54 during trading hours on Friday, reaching $73.67. 467,861 shares of the stock were exchanged, compared to its average volume of 168,135. The firm has a market capitalization of $1.95 billion, a price-to-earnings ratio of 31.09, a P/E/G ratio of 2.13 and a beta of 1.32. The stock's fifty day simple moving average is $74.96 and its 200 day simple moving average is $77.15. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.82 and a current ratio of 2.81. Gorman-Rupp has a 52 week low of $42.31 and a 52 week high of $92.78.

Gorman-Rupp (NYSE:GRC - Get Free Report) last released its quarterly earnings results on Friday, October 23rd. The industrial products company reported $0.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.16. Gorman-Rupp had a return on equity of 15.55% and a net margin of 8.88%. The business had revenue of $193.25 million during the quarter, compared to the consensus estimate of $181.55 million. Sell-side analysts predict that Gorman-Rupp will post 2.67 EPS for the current year.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Zacks Research cut Gorman-Rupp from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 24th. Wall Street Zen cut shares of Gorman-Rupp from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Gorman-Rupp in a research report on Wednesday, September 9th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Gorman-Rupp presently has a consensus rating of "Hold".

Gorman-Rupp Company Profile

Gorman-Rupp Co designs, manufactures and sells pumps and pumping systems for moving water and other liquids. Its product portfolio includes self-priming centrifugal pumps, standard centrifugal pumps, submersible pumps, rotary gear pumps, diaphragm pumps and related pumping equipment.

The company serves a range of markets, including municipal water and wastewater treatment, construction, agriculture, industrial operations, petroleum, fire protection and emergency services. Its products are used in applications such as sewage handling, flood control, dewatering, irrigation and general fluid transfer.

Founded in 1933 by J.C.

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