Principal Financial Group Inc. Trims Stock Holdings in Graco Inc. $GGG

Key Points

• Principal Financial Group cut its stake in Graco by 2.1%, selling 52,548 shares and retaining 2,406,309 shares (about 1.45% of the company) valued at roughly $197.25 million at quarter-end.
• Graco missed quarterly expectations, reporting $0.66 EPS vs. $0.75 expected and revenue of $540.14 million versus $561.35 million, although revenue rose 2.2% year-over-year.
• The company declared a quarterly dividend of $0.295 (annualized $1.18, ~1.5% yield) and the stock carries a consensus "Hold" rating with a $94.25 price target from analysts.

Principal Financial Group Inc. lowered its holdings in Graco Inc. (NYSE:GGG - Free Report) by 2.1% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,406,309 shares of the industrial products company's stock after selling 52,548 shares during the period. Principal Financial Group Inc. owned approximately 1.45% of Graco worth $197,249,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Montag A & Associates Inc. boosted its holdings in Graco by 13.5% in the 4th quarter. Montag A & Associates Inc. now owns 31,442 shares of the industrial products company's stock worth $2,577,000 after buying an additional 3,728 shares during the period. Fenimore Asset Management Inc raised its holdings in Graco by 0.9% during the 4th quarter. Fenimore Asset Management Inc now owns 1,112,750 shares of the industrial products company's stock valued at $91,212,000 after acquiring an additional 9,866 shares during the period. Composition Wealth LLC bought a new stake in Graco during the 4th quarter valued at $260,000. Horizon Investments LLC purchased a new stake in shares of Graco during the fourth quarter worth $313,000. Finally, Danske Bank A S lifted its position in shares of Graco by 7.1% during the fourth quarter. Danske Bank A S now owns 127,093 shares of the industrial products company's stock worth $10,418,000 after acquiring an additional 8,416 shares in the last quarter. 93.88% of the stock is currently owned by hedge funds and other institutional investors.

Graco Price Performance

GGG opened at $78.69 on Wednesday. The firm has a market capitalization of $13.06 billion, a P/E ratio of 25.63, a price-to-earnings-growth ratio of 2.49 and a beta of 0.96. Graco Inc. has a one year low of $77.70 and a one year high of $95.69. The company has a fifty day moving average price of $86.54 and a 200-day moving average price of $85.42.

Graco (NYSE:GGG - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The industrial products company reported $0.66 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.75 by ($0.09). Graco had a return on equity of 18.66% and a net margin of 22.96%.The business had revenue of $540.14 million during the quarter, compared to analysts' expectations of $561.35 million. During the same quarter last year, the business posted $0.70 EPS. The company's quarterly revenue was up 2.2% on a year-over-year basis. On average, analysts expect that Graco Inc. will post 3.13 earnings per share for the current year.

Graco Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 6th. Shareholders of record on Monday, April 13th will be issued a $0.295 dividend. The ex-dividend date of this dividend is Monday, April 13th. This represents a $1.18 annualized dividend and a dividend yield of 1.5%. Graco's dividend payout ratio (DPR) is presently 38.44%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on GGG. KeyCorp reiterated a "sector weight" rating on shares of Graco in a research report on Tuesday, January 27th. Weiss Ratings cut Graco from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, April 29th. DA Davidson restated a "neutral" rating and issued a $85.00 target price on shares of Graco in a research note on Monday, April 27th. Jefferies Financial Group lifted their target price on Graco from $100.00 to $105.00 and gave the company a "buy" rating in a report on Wednesday, January 28th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $95.00 price target on shares of Graco in a research report on Friday, April 24th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $94.25.

Insider Transactions at Graco

In related news, Director Andrea Helen Simon acquired 1,240 shares of the firm's stock in a transaction that occurred on Monday, April 27th. The shares were bought at an average cost of $80.53 per share, for a total transaction of $99,857.20. Following the completion of the transaction, the director owned 1,240 shares in the company, valued at approximately $99,857.20. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Angela F. Wordell sold 2,832 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $93.22, for a total transaction of $263,999.04. Following the completion of the sale, the executive vice president directly owned 13,360 shares in the company, valued at $1,245,419.20. This represents a 17.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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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