Jennison Associates LLC Cuts Stake in Griffon Corporation $GFF

Key Points

• Jennison Associates cut its stake in Griffon by 44.7% in Q4, selling 265,535 shares and now holds 328,431 shares (~0.71% of the company) valued at $24.19 million.
• Quarterly results beat estimates: Griffon reported $1.45 EPS vs. $1.34 expected and revenue of $649.1M vs. $618.4M, with revenue up 2.6% year-over-year and analysts projecting $5.16 EPS for the fiscal year.
• Valuation, dividend and ownership: Griffon has a $4.31B market cap and a high P/E (~100.7), pays a 1.0% yield with a 95.7% payout ratio, about 73.2% of shares are institutionally owned, and insiders recently sold stock (SVP 15,000; director 3,070).

Jennison Associates LLC cut its stake in Griffon Corporation (NYSE:GFF - Free Report) by 44.7% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 328,431 shares of the conglomerate's stock after selling 265,535 shares during the quarter. Jennison Associates LLC owned about 0.71% of Griffon worth $24,189,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in GFF. Huntington National Bank grew its stake in shares of Griffon by 645.0% during the third quarter. Huntington National Bank now owns 447 shares of the conglomerate's stock valued at $34,000 after acquiring an additional 387 shares in the last quarter. Osterweis Capital Management Inc. acquired a new position in shares of Griffon in the second quarter worth about $37,000. EverSource Wealth Advisors LLC lifted its stake in shares of Griffon by 33.0% in the second quarter. EverSource Wealth Advisors LLC now owns 572 shares of the conglomerate's stock worth $41,000 after acquiring an additional 142 shares in the last quarter. McIlrath & Eck LLC boosted its holdings in Griffon by 43.4% in the third quarter. McIlrath & Eck LLC now owns 539 shares of the conglomerate's stock valued at $41,000 after purchasing an additional 163 shares during the last quarter. Finally, NewEdge Advisors LLC purchased a new position in Griffon in the first quarter valued at about $49,000. 73.22% of the stock is owned by hedge funds and other institutional investors.

Griffon Stock Up 1.6%

NYSE:GFF opened at $92.63 on Friday. The company has a market capitalization of $4.31 billion, a price-to-earnings ratio of 100.68, a price-to-earnings-growth ratio of 1.52 and a beta of 1.46. Griffon Corporation has a one year low of $65.01 and a one year high of $97.58. The stock has a 50-day simple moving average of $79.64 and a 200 day simple moving average of $78.68. The company has a debt-to-equity ratio of 12.36, a quick ratio of 1.27 and a current ratio of 2.55.

Griffon (NYSE:GFF - Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The conglomerate reported $1.45 EPS for the quarter, topping analysts' consensus estimates of $1.34 by $0.11. The business had revenue of $649.09 million during the quarter, compared to the consensus estimate of $618.35 million. Griffon had a return on equity of 228.83% and a net margin of 1.76%.The company's revenue for the quarter was up 2.6% compared to the same quarter last year. During the same period last year, the firm earned $1.39 earnings per share. Sell-side analysts predict that Griffon Corporation will post 5.16 EPS for the current fiscal year.

Griffon Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Friday, February 27th were paid a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Friday, February 27th. Griffon's dividend payout ratio (DPR) is 95.65%.

Insider Transactions at Griffon

In other news, Director James W. Sight sold 3,070 shares of the firm's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $96.15, for a total value of $295,180.50. Following the transaction, the director directly owned 13,872 shares in the company, valued at approximately $1,333,792.80. This trade represents a 18.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Seth L. Kaplan sold 15,000 shares of Griffon stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $95.44, for a total transaction of $1,431,600.00. Following the completion of the transaction, the senior vice president directly owned 119,747 shares of the company's stock, valued at $11,428,653.68. This trade represents a 11.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 10.20% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms have issued reports on GFF. Weiss Ratings restated a "hold (c)" rating on shares of Griffon in a report on Friday, March 27th. Zacks Research cut Griffon from a "hold" rating to a "strong sell" rating in a research note on Tuesday, February 17th. Wall Street Zen raised shares of Griffon from a "hold" rating to a "buy" rating in a research report on Sunday, April 26th. Robert W. Baird set a $108.00 price target on shares of Griffon in a research note on Friday, February 6th. Finally, Stephens upped their price target on shares of Griffon from $92.00 to $115.00 and gave the company an "overweight" rating in a report on Monday, February 9th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $107.67.

About Griffon

Griffon Corporation NYSE: GFF is a diversified management and holding company whose subsidiaries design, manufacture and market products for residential, commercial and defense applications. Operating through three primary platforms—Home & Building Products, Defense Electronics and Specialty Industrial—Griffon's portfolio spans consumer and industrial brands with a focus on long-lived products and recurring aftermarket opportunities.

In the Home & Building Products segment, Griffon's Clopay Building Products division is a leading North American manufacturer of residential and commercial garage doors, specializing in steel, fiberglass and composite designs as well as decorative carriage-house styles.

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