Magnetar Financial LLC Sells 49,927 Shares of Graco Inc. $GGG

Key Points

• Magnetar Financial LLC cut its stake in Graco by 49.0%, selling 49,927 shares and leaving 51,898 shares valued at about $4.41 million per its latest SEC filing.
• Graco reported quarterly EPS of $0.77 (in line with estimates) and revenue of $593.16 million, up 8.1% year-over-year; analysts hold a consensus "Moderate Buy" rating with a $96.50 price target.
• The board authorized a stock buyback of 15,000,000 shares and declared a quarterly dividend of $0.295 (annualized $1.18, ~1.3% yield), signaling management support for the stock.

Magnetar Financial LLC lowered its position in shares of Graco Inc. (NYSE:GGG - Free Report) by 49.0% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 51,898 shares of the industrial products company's stock after selling 49,927 shares during the quarter. Magnetar Financial LLC's holdings in Graco were worth $4,409,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Root Financial Partners LLC purchased a new stake in Graco in the 3rd quarter worth $29,000. CX Institutional lifted its position in shares of Graco by 316.7% in the third quarter. CX Institutional now owns 475 shares of the industrial products company's stock valued at $40,000 after acquiring an additional 361 shares in the last quarter. Assetmark Inc. boosted its stake in shares of Graco by 42.6% in the third quarter. Assetmark Inc. now owns 465 shares of the industrial products company's stock worth $40,000 after acquiring an additional 139 shares during the period. Geneos Wealth Management Inc. grew its position in shares of Graco by 982.6% during the first quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company's stock worth $42,000 after purchasing an additional 452 shares in the last quarter. Finally, TD Private Client Wealth LLC raised its stake in Graco by 116.9% during the 3rd quarter. TD Private Client Wealth LLC now owns 514 shares of the industrial products company's stock valued at $44,000 after purchasing an additional 277 shares during the period. 93.88% of the stock is owned by hedge funds and other institutional investors.

Graco Trading Up 0.1%

Graco stock opened at $88.01 on Thursday. Graco Inc. has a 12-month low of $72.06 and a 12-month high of $95.69. The firm has a 50-day moving average price of $89.47 and a 200-day moving average price of $85.35. The firm has a market capitalization of $14.55 billion, a PE ratio of 28.48, a price-to-earnings-growth ratio of 2.76 and a beta of 1.07.

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

Graco announced that its board has authorized a stock buyback plan on Friday, December 5th that authorizes the company to buyback 15,000,000 shares. This buyback authorization authorizes the industrial products company to buy shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Graco Dividend Announcement

The firm also recently declared 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. This represents a $1.18 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Monday, April 13th. Graco's dividend payout ratio (DPR) is currently 38.19%.

Insiders Place Their Bets

In other news, Director J Kevin Gilligan sold 12,870 shares of the company's stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $89.07, for a total value of $1,146,330.90. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Kathryn L. Schoenrock sold 2,223 shares of the firm's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $88.06, for a total transaction of $195,757.38. Following the completion of the transaction, the executive vice president directly owned 7,846 shares in the company, valued at $690,918.76. This represents a 22.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 19,394 shares of company stock worth $1,739,326 in the last 90 days. 2.19% of the stock is owned by insiders.

Analyst Ratings Changes

Several research firms have weighed in on GGG. Jefferies Financial Group upped their price target on Graco from $100.00 to $105.00 and gave the stock a "buy" rating in a research note on Wednesday, January 28th. Weiss Ratings upgraded shares of Graco from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, February 5th. Royal Bank Of Canada lifted their price target on shares of Graco from $97.00 to $100.00 and gave the company an "outperform" rating in a report on Wednesday, January 28th. Robert W. Baird set a $96.00 price target on shares of Graco in a research note on Wednesday, January 28th. Finally, DA Davidson reissued a "neutral" rating and set a $85.00 price objective on shares of Graco in a report on Monday, February 2nd. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $96.50.

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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