First Trust Advisors LP Acquires 61,706 Shares of Graco Inc. $GGG

Key Points

• First Trust Advisors LP increased its Graco stake by 4.2% in the first quarter, adding 61,706 shares to reach 1,535,923 shares valued at about $130 million. Institutional investors remain dominant, with hedge funds and other institutions owning 93.88% of the stock.
• Graco delivered a mixed but solid quarterly update, reporting earnings of $0.91 per share versus $0.81 expected, while revenue of $590.6 million came in below estimates. The company also posted 3.3% revenue growth year over year and raised optimism with improved profitability.
• Analysts and insiders remain active on the stock, with Graco maintaining a consensus “Hold” rating and a $93.50 average price target. The company also declared a quarterly dividend of $0.295 per share, equal to a 1.5% annualized yield.

First Trust Advisors LP lifted its holdings in Graco Inc. (NYSE:GGG - Free Report) by 4.2% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,535,923 shares of the industrial products company's stock after buying an additional 61,706 shares during the quarter. First Trust Advisors LP owned approximately 0.93% of Graco worth $130,016,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. State Street Corp grew its holdings in Graco by 3.2% in the fourth quarter. State Street Corp now owns 7,813,877 shares of the industrial products company's stock worth $640,503,000 after purchasing an additional 242,817 shares during the period. Geode Capital Management LLC boosted its position in shares of Graco by 5.9% in the 4th quarter. Geode Capital Management LLC now owns 4,652,241 shares of the industrial products company's stock worth $380,642,000 after purchasing an additional 261,126 shares in the last quarter. Morgan Stanley grew its stake in shares of Graco by 5.4% in the 4th quarter. Morgan Stanley now owns 4,057,036 shares of the industrial products company's stock worth $332,556,000 after buying an additional 206,949 shares during the last quarter. Amundi increased its position in Graco by 2.6% during the 3rd quarter. Amundi now owns 2,076,887 shares of the industrial products company's stock valued at $176,016,000 after buying an additional 53,126 shares in the last quarter. Finally, Norges Bank purchased a new position in Graco during the fourth quarter valued at $161,949,000. 93.88% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on GGG shares. Weiss Ratings downgraded Graco from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday. DA Davidson restated a "neutral" rating and set a $85.00 price target on shares of Graco in a report on Monday, April 27th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $92.00 price target (down from $95.00) on shares of Graco in a research report on Thursday, July 16th. Wolfe Research cut shares of Graco from an "outperform" rating to a "peer perform" rating in a research note on Thursday, July 9th. Finally, Robert W. Baird dropped their price target on shares of Graco from $96.00 to $92.00 and set a "neutral" rating on the stock in a research note on Friday, April 24th. Two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Graco has a consensus rating of "Hold" and a consensus target price of $93.50.

Insider Transactions at Graco

In related news, Director Andrea Helen Simon bought 1,240 shares of the business's stock in a transaction on Monday, April 27th. The stock was acquired at an average price of $80.53 per share, with a total value of $99,857.20. Following the transaction, the director owned 1,240 shares in the company, valued at approximately $99,857.20. This trade represents a ∞ increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 2.18% of the company's stock.

Graco Stock Performance

GGG opened at $77.78 on Friday. The stock has a market capitalization of $12.91 billion, a P/E ratio of 24.46, a P/E/G ratio of 2.38 and a beta of 0.93. The company's 50-day simple moving average is $75.00 and its two-hundred day simple moving average is $82.68. Graco Inc. has a 52-week low of $72.51 and a 52-week high of $95.69.

Graco (NYSE:GGG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $0.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.81 by $0.10. Graco had a net margin of 23.53% and a return on equity of 19.27%. The firm had revenue of $590.55 million for the quarter, compared to the consensus estimate of $608.06 million. During the same quarter last year, the firm posted $0.75 EPS. The business's quarterly revenue was up 3.3% compared to the same quarter last year. Research analysts forecast that Graco Inc. will post 3.1 EPS for the current fiscal year.

Graco Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Investors of record on Monday, July 20th will be issued a $0.295 dividend. The ex-dividend date is Monday, July 20th. This represents a $1.18 annualized dividend and a yield of 1.5%. Graco's dividend payout ratio (DPR) is currently 38.44%.

Key Stories Impacting Graco

Here are the key news stories impacting Graco this week:

• Positive Sentiment: Graco beat earnings expectations, with adjusted EPS of $0.91 versus the $0.81 consensus, while operating earnings rose 11% year over year. Graco Reports Record Second Quarter Sales and Operating Earnings
• Positive Sentiment: Management said all three business segments grew, organic orders increased at a mid-single-digit rate, and the company sees improving demand trends. Graco stock rises after earnings beat and steady outlook
• Positive Sentiment: Graco reaffirmed its full-year outlook for low-single-digit organic sales growth and issued third-quarter revenue guidance of $580 million to $600 million, easing concerns about a bigger slowdown. Graco Surpasses Q2 Earnings Estimates, Reaffirms 2026 View
• Neutral Sentiment: Revenue came in below estimates at $590.6 million versus $608.1 million expected, so the quarter was mixed on the top line even though profitability improved. Graco earnings report and conference call
• Neutral Sentiment: Graco also repurchased $315 million of shares during the quarter, which supports per-share results but was not the primary catalyst for the stock move. Graco stock rises after earnings beat and steady outlook

Graco Company Profile

Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco's solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.

The company's product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.

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