Royal Bank of Canada Reduces Stock Holdings in Graco Inc. $GGG

Key Points

• Royal Bank of Canada cut its Graco stake by 9.9% in the first quarter, selling 38,985 shares and retaining 355,828 shares worth approximately $30.1 million. Institutional investors collectively own 93.88% of Graco.
• Graco exceeded quarterly earnings expectations, reporting $0.91 in EPS versus an $0.81 consensus estimate, while revenue rose 3.3% year over year to $590.55 million but fell short of forecasts.
• The company declared a quarterly dividend of $0.295 per share, equivalent to an annualized $1.18 dividend and a 1.4% yield. Analysts maintain a consensus “Hold” rating with a $95 average price target.

Royal Bank of Canada cut its stake in shares of Graco Inc. (NYSE:GGG - Free Report) by 9.9% during the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 355,828 shares of the industrial products company's stock after selling 38,985 shares during the period. Royal Bank of Canada owned approximately 0.21% of Graco worth $30,122,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of GGG. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Graco during the first quarter valued at approximately $26,000. Whipplewood Advisors LLC boosted its stake in shares of Graco by 2,650.0% in the first quarter. Whipplewood Advisors LLC now owns 330 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 318 shares during the period. Field & Main Bank purchased a new position in shares of Graco in the fourth quarter valued at $41,000. Geneos Wealth Management Inc. boosted its stake in shares of Graco by 982.6% in the first 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 during the period. Finally, Root Financial Partners LLC grew its holdings in Graco by 43.2% during the 1st quarter. Root Financial Partners LLC now owns 504 shares of the industrial products company's stock valued at $43,000 after purchasing an additional 152 shares in the last quarter. Hedge funds and other institutional investors own 93.88% of the company's stock.

Graco Stock Performance

GGG opened at $82.21 on Wednesday. The company has a market capitalization of $13.31 billion, a P/E ratio of 25.85, a PEG ratio of 2.49 and a beta of 0.92. The company has a 50-day moving average of $75.78 and a 200-day moving average of $82.43. Graco Inc. has a 1-year low of $72.51 and a 1-year high of $95.69.

Graco (NYSE:GGG - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $0.91 EPS for the quarter, topping the consensus estimate of $0.81 by $0.10. The business had revenue of $590.55 million for the quarter, compared to analysts' expectations of $608.06 million. Graco had a net margin of 23.53% and a return on equity of 19.54%. The company's quarterly revenue was up 3.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.75 earnings per share. As a group, sell-side analysts expect that Graco Inc. will post 3.22 earnings per share for the current fiscal year.

Graco Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Shareholders of record on Monday, July 20th will be issued a dividend of $0.295 per share. This represents a $1.18 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Monday, July 20th. Graco's dividend payout ratio (DPR) is currently 37.11%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on GGG. Robert W. Baird set a $94.00 price target on shares of Graco in a research note on Friday, July 24th. DA Davidson reissued a "neutral" rating and issued a $85.00 price objective on shares of Graco in a research report on Monday, July 27th. Royal Bank Of Canada raised their target price on Graco from $92.00 to $96.00 and gave the company an "outperform" rating in a research note on Friday, July 24th. Wolfe Research lowered Graco from an "outperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. Finally, Weiss Ratings cut Graco from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, July 21st. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $95.00.

About Graco

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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