BlackRock Inc. Makes New $165.12 Million Investment in Gorman-Rupp Company (The) $GRC

Key Points

• BlackRock acquired 1.8 million Gorman-Rupp shares worth approximately $165.1 million, giving it a 6.81% stake. Institutional investors now own 59.26% of the company.
• Gorman-Rupp reported quarterly EPS of $0.74, beating estimates of $0.70, while revenue of $186.1 million came in below expectations. Analysts project full-year EPS of $2.67.
• The company declared a quarterly dividend of $0.19, or $0.76 annually, representing a 1.0% yield. Despite recent institutional buying, analyst sentiment remains generally neutral, with an average “Hold” rating.

BlackRock Inc. bought a new stake in Gorman-Rupp Company (The) (NYSE:GRC - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 1,799,828 shares of the industrial products company's stock, valued at approximately $165,116,000. BlackRock Inc. owned 6.81% of Gorman-Rupp as of its most recent SEC filing.

Several other institutional investors also recently made changes to their positions in the stock. Principal Financial Group Inc. purchased a new stake in shares of Gorman-Rupp in the 1st quarter worth about $923,000. First Trust Advisors LP increased its position in shares of Gorman-Rupp by 326.1% during the first quarter. First Trust Advisors LP now owns 524,400 shares of the industrial products company's stock valued at $32,581,000 after buying an additional 401,340 shares during the period. Cetera Investment Advisers purchased a new position in shares of Gorman-Rupp during the first quarter valued at about $983,000. Bank of America Corp DE raised its stake in Gorman-Rupp by 1,056.7% in the first quarter. Bank of America Corp DE now owns 302,230 shares of the industrial products company's stock worth $18,778,000 after buying an additional 276,101 shares in the last quarter. Finally, PVG Asset Management Corp bought a new position in Gorman-Rupp in the first quarter worth about $844,000. 59.26% of the stock is owned by institutional investors.

Gorman-Rupp Price Performance

NYSE GRC opened at $76.03 on Friday. Gorman-Rupp Company has a one year low of $41.85 and a one year high of $92.78. The stock has a 50-day moving average of $81.87 and a 200 day moving average of $74.11. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.82 and a current ratio of 2.81. The company has a market capitalization of $2.01 billion, a price-to-earnings ratio of 32.08, a PEG ratio of 2.24 and a beta of 1.29.

Gorman-Rupp (NYSE:GRC - Get Free Report) last issued its quarterly earnings data on Friday, July 24th. The industrial products company reported $0.74 EPS for the quarter, topping the consensus estimate of $0.70 by $0.04. Gorman-Rupp had a return on equity of 15.55% and a net margin of 8.88%.The company had revenue of $186.07 million during the quarter, compared to analyst estimates of $188.89 million. On average, sell-side analysts forecast that Gorman-Rupp Company will post 2.67 EPS for the current year.

Gorman-Rupp Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be paid a $0.19 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 1.0%. Gorman-Rupp's dividend payout ratio is 32.07%.

Insider Activity

In related news, VP D Patrick Wischmeier sold 5,153 shares of Gorman-Rupp stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $77.62, for a total transaction of $399,975.86. Following the transaction, the vice president owned 1,409 shares in the company, valued at approximately $109,366.58. The trade was a 78.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 11.60% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms have weighed in on GRC. Wall Street Zen cut Gorman-Rupp from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Zacks Research lowered Gorman-Rupp from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 24th. Freedom Capital upgraded Gorman-Rupp to a "hold" rating in a research note on Monday, May 18th. Finally, Weiss Ratings lowered Gorman-Rupp from a "buy (b+)" rating to a "buy (b)" rating in a research report on Friday, June 12th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Hold".

Gorman-Rupp Company Profile

Gorman-Rupp Company is a U.S.-based manufacturer specializing in the design, production and distribution of pumps and pumping systems. Its product lineup includes centrifugal self-priming pumps, submersible pumps, vacuum priming pumps and engineered pumps for applications such as water and wastewater management, sewage handling, dewatering, industrial processing and agricultural irrigation. The company supports both standard pump requirements and custom engineered solutions for original equipment manufacturers (OEMs) and municipal clients.

Headquartered in Mansfield, Ohio, Gorman-Rupp has built a reputation for rugged, reliable equipment and aftermarket support services.

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