UBS Group AG Lowers Stake in Graco Inc. $GGG

Key Points

• UBS Group AG cut its stake in Graco by 32.6% in Q4, selling 315,038 shares and retaining 651,032 shares (about 0.39% of the company) valued at roughly $53.37 million.
• Graco missed quarterly expectations, reporting $0.66 EPS vs. $0.75 expected and $540.14M revenue vs. $561.35M expected, though revenue rose 2.2% year-over-year.
• Dividend and sentiment: the company declared a $0.295 quarterly dividend (annualized $1.18, ~1.5% yield) while analysts hold an average "Hold" rating with a $94.25 consensus price target.

UBS Group AG reduced its position in shares of Graco Inc. (NYSE:GGG - Free Report) by 32.6% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 651,032 shares of the industrial products company's stock after selling 315,038 shares during the quarter. UBS Group AG owned 0.39% of Graco worth $53,365,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. AE Wealth Management LLC lifted its holdings in Graco by 32.7% during the fourth quarter. AE Wealth Management LLC now owns 398,336 shares of the industrial products company's stock valued at $32,652,000 after purchasing an additional 98,141 shares in the last quarter. Nordea Investment Management AB lifted its holdings in Graco by 432.6% in the 3rd quarter. Nordea Investment Management AB now owns 85,654 shares of the industrial products company's stock valued at $7,263,000 after purchasing an additional 69,573 shares in the last quarter. Robeco Institutional Asset Management B.V. lifted its holdings in Graco by 154.2% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 64,341 shares of the industrial products company's stock valued at $5,466,000 after purchasing an additional 39,031 shares in the last quarter. Swiss Life Asset Management Ltd lifted its holdings in Graco by 40.5% in the 3rd quarter. Swiss Life Asset Management Ltd now owns 45,544 shares of the industrial products company's stock valued at $3,869,000 after purchasing an additional 13,130 shares in the last quarter. Finally, Raiffeisen Bank International AG lifted its holdings in Graco by 191.8% in the 3rd quarter. Raiffeisen Bank International AG now owns 8,809 shares of the industrial products company's stock valued at $744,000 after purchasing an additional 5,790 shares in the last quarter. 93.88% of the stock is owned by hedge funds and other institutional investors.

Graco Stock Performance

GGG opened at $78.69 on Wednesday. Graco Inc. has a one year low of $77.70 and a one year high of $95.69. The stock has a market capitalization of $13.06 billion, a PE ratio of 25.63, a P/E/G ratio of 2.49 and a beta of 0.96. The business's 50 day moving average price is $86.54 and its 200 day moving average price is $85.42.

Graco (NYSE:GGG - Get Free Report) last released its quarterly earnings results 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). The company had revenue of $540.14 million during the quarter, compared to analysts' expectations of $561.35 million. Graco had a net margin of 22.96% and a return on equity of 18.66%. Graco's revenue was up 2.2% on a year-over-year basis. During the same period last year, the firm posted $0.70 earnings per share. As a group, equities research analysts forecast that Graco Inc. will post 3.13 earnings per share for the current fiscal year.

Graco Announces Dividend

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

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Weiss Ratings lowered Graco from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, April 29th. DA Davidson reiterated a "neutral" rating and set a $85.00 price objective on shares of Graco in a research report on Monday, April 27th. Robert W. Baird reduced their price objective on Graco from $96.00 to $92.00 and set a "neutral" rating on the stock in a research report on Friday, April 24th. KeyCorp reiterated a "sector weight" rating on shares of Graco in a research report on Tuesday, January 27th. Finally, Jefferies Financial Group lifted their price objective on Graco from $100.00 to $105.00 and gave the stock a "buy" rating in a research report on Wednesday, January 28th. Three equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $94.25.

Insider Buying and Selling

In other Graco news, EVP Angela F. Wordell sold 2,832 shares of the business's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $93.22, for a total transaction of $263,999.04. Following 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Andrea Helen Simon purchased 1,240 shares of the business's stock in a transaction on Monday, April 27th. The shares were acquired at an average price of $80.53 per share, for a total transaction of $99,857.20. Following the completion of the purchase, the director directly owned 1,240 shares of the company's stock, valued at approximately $99,857.20. This trade represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 2.18% of the stock is currently owned by insiders.

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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