JPMorgan Chase & Co. Cuts Stake in Graco Inc. $GGG

Key Points

• JPMorgan Chase cut its stake in Graco Inc. by 8.7% in Q3, selling 62,747 shares and now owning 661,987 shares (about 0.40%) valued at roughly $56.2M, while institutional investors overall hold 93.88% of the stock.
• Graco beat/ met expectations in its latest quarter with $0.77 EPS and $593.2M revenue (up 8.1% YoY), posts strong margins (net margin 23.3%) and carries a consensus "Moderate Buy" with an average target of $96.50 and analysts projecting ~3.06 EPS for the year.
• The board approved a 15,000,000‑share buyback and declared a $0.295 quarterly dividend (annualized $1.18, ~1.4% yield), even as company insiders have trimmed their holdings in recent trades.

JPMorgan Chase & Co. cut its holdings in shares of Graco Inc. (NYSE:GGG - Free Report) by 8.7% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 661,987 shares of the industrial products company's stock after selling 62,747 shares during the quarter. JPMorgan Chase & Co. owned 0.40% of Graco worth $56,242,000 as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. CIBC Private Wealth Group LLC increased its position in shares of Graco by 24.2% during the third quarter. CIBC Private Wealth Group LLC now owns 7,115 shares of the industrial products company's stock worth $604,000 after acquiring an additional 1,387 shares during the period. CIBC Bancorp USA Inc. purchased a new position in Graco in the third quarter valued at $509,000. Coldstream Capital Management Inc. boosted its holdings in Graco by 0.7% in the third quarter. Coldstream Capital Management Inc. now owns 33,809 shares of the industrial products company's stock valued at $2,872,000 after purchasing an additional 226 shares during the period. Danske Bank A S acquired a new position in Graco during the 3rd quarter worth $10,083,000. Finally, Advisory Services Network LLC grew its stake in Graco by 0.9% during the 3rd quarter. Advisory Services Network LLC now owns 38,008 shares of the industrial products company's stock worth $3,229,000 after purchasing an additional 353 shares in the last quarter. Institutional investors and hedge funds own 93.88% of the company's stock.

Graco Price Performance

NYSE:GGG opened at $84.31 on Friday. Graco Inc. has a 12 month low of $72.06 and a 12 month high of $95.69. The firm has a market capitalization of $13.98 billion, a PE ratio of 27.29, a price-to-earnings-growth ratio of 2.66 and a beta of 1.07. The business's fifty day moving average price is $89.77 and its 200 day moving average price is $85.35.

Graco (NYSE:GGG - Get Free Report) last announced its quarterly earnings results on Monday, January 26th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.77. The company had revenue of $593.16 million during the quarter, compared to the consensus estimate of $591.99 million. Graco had a return on equity of 19.49% and a net margin of 23.33%.Graco's revenue for the quarter was up 8.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.64 EPS. As a group, equities analysts anticipate that Graco Inc. will post 3.06 EPS for the current year.

Graco declared that its board has approved a stock repurchase program on Friday, December 5th that permits the company to buyback 15,000,000 outstanding shares. This buyback authorization permits the industrial products company to buy shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Graco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 6th. Investors of record on Monday, April 13th will be paid a dividend of $0.295 per share. The ex-dividend date is Monday, April 13th. This represents a $1.18 annualized dividend and a yield of 1.4%. Graco's payout ratio is presently 38.19%.

Insiders Place Their Bets

In related news, EVP Angela F. Wordell sold 2,832 shares of the stock in a transaction on Friday, February 6th. The shares were sold at an average price of $93.22, for a total value of $263,999.04. Following the transaction, the executive vice president directly owned 13,360 shares of the company's stock, valued at $1,245,419.20. This trade represents a 17.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Kathryn L. Schoenrock sold 2,223 shares of the business's stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $88.06, for a total transaction of $195,757.38. Following the completion of the sale, the executive vice president directly owned 7,846 shares of the company's stock, valued at approximately $690,918.76. This trade represents a 22.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 19,394 shares of company stock valued at $1,739,326. 2.19% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on GGG shares. Robert W. Baird set a $96.00 price target on Graco in a research report on Wednesday, January 28th. Weiss Ratings raised Graco from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, February 5th. KeyCorp restated a "sector weight" rating on shares of Graco in a research note on Tuesday, January 27th. DA Davidson reaffirmed a "neutral" rating and issued a $85.00 target price on shares of Graco in a report on Monday, February 2nd. Finally, Jefferies Financial Group lifted their price target on shares of Graco from $100.00 to $105.00 and gave the stock a "buy" rating in a research note on Wednesday, January 28th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $96.50.

Graco 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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