Mediolanum International Funds Ltd Increases Stock Position in Graco Inc. $GGG

Key Points

• Mediolanum International Funds Ltd increased its Graco stake by 10.8% in Q1, and several other large investors also raised positions, with institutional ownership now at 93.88%.
• Graco reported Q1 earnings below expectations, posting $0.66 EPS versus the $0.75 estimate and revenue of $540.14 million versus the expected $561.35 million, though revenue still rose 2.2% year over year.
• The company declared a quarterly dividend of $0.295 per share, payable August 5, for an annualized yield of 1.6%; meanwhile, analysts largely remain cautious with a consensus rating of Hold and an average price target of $93.50.

Mediolanum International Funds Ltd lifted its position in shares of Graco Inc. (NYSE:GGG - Free Report) by 10.8% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 152,679 shares of the industrial products company's stock after buying an additional 14,896 shares during the period. Mediolanum International Funds Ltd owned approximately 0.09% of Graco worth $12,663,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Goldman Sachs Group Inc. increased its stake in Graco by 15.6% during the first quarter. Goldman Sachs Group Inc. now owns 330,409 shares of the industrial products company's stock worth $27,592,000 after acquiring an additional 44,573 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in shares of Graco by 982.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company's stock valued at $42,000 after purchasing an additional 452 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Graco by 97.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,765 shares of the industrial products company's stock valued at $152,000 after purchasing an additional 870 shares in the last quarter. Marshall Wace LLP grew its holdings in shares of Graco by 559.5% during the 2nd quarter. Marshall Wace LLP now owns 108,100 shares of the industrial products company's stock worth $9,293,000 after purchasing an additional 91,708 shares during the period. Finally, Federated Hermes Inc. grew its holdings in shares of Graco by 4.2% during the 2nd quarter. Federated Hermes Inc. now owns 21,289 shares of the industrial products company's stock worth $1,830,000 after purchasing an additional 852 shares during the period. 93.88% of the stock is owned by hedge funds and other institutional investors.

Graco Stock Performance

Shares of NYSE GGG opened at $74.61 on Monday. Graco Inc. has a 1 year low of $72.51 and a 1 year high of $95.69. The firm has a market cap of $12.38 billion, a price-to-earnings ratio of 24.30, a PEG ratio of 2.40 and a beta of 0.93. The stock's 50-day simple moving average is $75.18 and its 200-day simple moving average is $82.90.

Graco (NYSE:GGG - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The industrial products company reported $0.66 EPS for the quarter, missing analysts' consensus estimates of $0.75 by ($0.09). Graco had a net margin of 22.96% and a return on equity of 18.66%. The business had revenue of $540.14 million during the quarter, compared to analysts' expectations of $561.35 million. During the same period in the prior year, the company posted $0.70 EPS. The company's revenue for the quarter was up 2.2% on a year-over-year basis. As a group, research analysts predict that Graco Inc. will post 3.1 EPS for the current year.

Graco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Shareholders of record on Monday, July 20th will be given a $0.295 dividend. This represents a $1.18 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, July 20th. Graco's dividend payout ratio is presently 38.44%.

Wall Street Analyst Weigh In

Several research firms recently commented on GGG. Wolfe Research lowered shares of Graco from an "outperform" rating to a "peer perform" rating in a report on Thursday, July 9th. DA Davidson reiterated a "neutral" rating and set a $85.00 price objective on shares of Graco in a research note on Monday, April 27th. Robert W. Baird dropped their price objective on shares of Graco from $96.00 to $92.00 and set a "neutral" rating for the company in a research report on Friday, April 24th. Royal Bank Of Canada reissued an "outperform" rating and issued a $92.00 target price (down from $95.00) on shares of Graco in a research note on Thursday. Finally, Weiss Ratings lowered shares of Graco from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 5th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $93.50.

Insider Activity at Graco

In other Graco news, Director Andrea Helen Simon bought 1,240 shares of Graco stock in a transaction dated Monday, April 27th. The stock was bought at an average cost of $80.53 per share, for a total transaction of $99,857.20. Following the purchase, the director owned 1,240 shares in the company, valued at $99,857.20. This represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Company insiders own 2.18% of the company's stock.

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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