Gorman-Rupp (NYSE:GRC) Shares Gap Up After Strong Earnings

Key Points

• Gorman-Rupp's shares jumped from a previous close of $37.88 to an opening price of $40.00 following their earnings report, which featured a $0.60 EPS that surpassed analysts' expectations.
• The company announced a $0.185 quarterly dividend, scheduled for September 10th, with an annualized yield of 1.85%.
• Wall Street analysts recently upgraded Gorman-Rupp from a "buy" to a "strong-buy" rating, indicating positive future growth prospects.
• Institutional ownership of Gorman-Rupp stands at 59.26%, with various firms significantly increasing their stakes in the company during the first quarter.

Gorman-Rupp Company (The) (NYSE:GRC - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $37.88, but opened at $40.00. Gorman-Rupp shares last traded at $40.44, with a volume of 16,724 shares changing hands.

The industrial products company reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.05. Gorman-Rupp had a return on equity of 13.84% and a net margin of 7.69%. The firm had revenue of $179.05 million for the quarter, compared to the consensus estimate of $174.60 million.

Gorman-Rupp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 15th will be given a $0.185 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $0.74 dividend on an annualized basis and a yield of 1.79%. Gorman-Rupp's dividend payout ratio is currently 37.56%.

Analysts Set New Price Targets

Separately, Wall Street Zen upgraded shares of Gorman-Rupp from a "buy" rating to a "strong-buy" rating in a research note on Friday, April 25th.

Institutional Investors Weigh In On Gorman-Rupp

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in Gorman-Rupp by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 2,205,019 shares of the industrial products company's stock worth $83,614,000 after buying an additional 20,407 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Gorman-Rupp by 0.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,345,454 shares of the industrial products company's stock worth $51,020,000 after acquiring an additional 3,574 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Gorman-Rupp by 7.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 756,083 shares of the industrial products company's stock valued at $26,540,000 after acquiring an additional 53,006 shares during the period. Gamco Investors INC. ET AL increased its position in shares of Gorman-Rupp by 6.1% in the first quarter. Gamco Investors INC. ET AL now owns 554,728 shares of the industrial products company's stock valued at $19,471,000 after buying an additional 31,790 shares in the last quarter. Finally, Cooke & Bieler LP raised its position in Gorman-Rupp by 8.5% during the first quarter. Cooke & Bieler LP now owns 481,965 shares of the industrial products company's stock worth $16,917,000 after acquiring an additional 37,738 shares during the period. Institutional investors and hedge funds own 59.26% of the company's stock.

Gorman-Rupp Stock Performance

The stock has a market cap of $1.09 billion, a price-to-earnings ratio of 20.97, a P/E/G ratio of 1.58 and a beta of 1.17. The firm's 50-day moving average is $37.18 and its two-hundred day moving average is $36.85. The company has a current ratio of 2.42, a quick ratio of 1.35 and a debt-to-equity ratio of 0.87.

Gorman-Rupp Company Profile

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company's products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high-pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps.