Graco (NYSE:GGG) Reaches New 1-Year Low - Time to Sell?

Key Points

• Graco hit a new 52-week low, trading as low as $77.21 after recently closing at $77.59, underscoring continued weakness in the stock.
• Despite the price drop, analyst views are mixed but lean cautious: the consensus rating is Hold with an average price target of $94.25, though some firms still rate the stock a buy or outperform.
• The company’s latest earnings missed expectations, with Q1 EPS of $0.66 versus the $0.75 estimate and revenue of $540.14 million below forecasts, even as Graco continues to pay a dividend yielding about 1.5% annually.

Graco Inc. (NYSE:GGG - Get Free Report) hit a new 52-week low during trading on Monday . The company traded as low as $77.21 and last traded at $77.4390, with a volume of 22778 shares. The stock had previously closed at $77.59.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. Royal Bank Of Canada reiterated an "outperform" rating and set a $95.00 price target on shares of Graco in a report on Friday, April 24th. Jefferies Financial Group lifted their price target on shares of Graco from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Wednesday, January 28th. Weiss Ratings downgraded shares of 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 target on shares of Graco in a report on Monday, April 27th. Finally, Robert W. Baird lowered their price target on shares of Graco from $96.00 to $92.00 and set a "neutral" rating for the company in a report on Friday, April 24th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Graco presently has an average rating of "Hold" and a consensus target price of $94.25.

Graco Stock Down 0.1%

The business's fifty day moving average is $86.00 and its 200-day moving average is $85.39. The stock has a market capitalization of $12.87 billion, a PE ratio of 25.25, a P/E/G ratio of 2.48 and a beta of 0.96.

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

Graco Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 6th. Investors of record on Monday, April 13th were issued a $0.295 dividend. This represents a $1.18 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Monday, April 13th. Graco's payout ratio is presently 38.44%.

Insider Transactions at Graco

In other Graco news, Director Andrea Helen Simon acquired 1,240 shares of the firm's stock in a transaction on 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 completion of the purchase, the director directly owned 1,240 shares in the company, valued at $99,857.20. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.18% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Graco

Several institutional investors have recently bought and sold shares of the business. Mercer Global Advisors Inc. ADV grew its stake in Graco by 0.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,277 shares of the industrial products company's stock worth $1,745,000 after buying an additional 109 shares during the period. Stonebridge Capital Advisors LLC grew its stake in Graco by 0.3% during the second quarter. Stonebridge Capital Advisors LLC now owns 41,431 shares of the industrial products company's stock worth $3,562,000 after buying an additional 119 shares during the period. Fifth Third Bancorp grew its stake in Graco by 7.7% during the third quarter. Fifth Third Bancorp now owns 1,755 shares of the industrial products company's stock worth $149,000 after buying an additional 125 shares during the period. ICW Investment Advisors LLC boosted its stake in shares of Graco by 4.6% in the third quarter. ICW Investment Advisors LLC now owns 2,849 shares of the industrial products company's stock valued at $242,000 after purchasing an additional 126 shares during the period. Finally, Jones Financial Companies Lllp boosted its stake in shares of Graco by 7.8% in the third quarter. Jones Financial Companies Lllp now owns 1,874 shares of the industrial products company's stock valued at $159,000 after purchasing an additional 135 shares during the period. 93.88% of the stock is currently owned by hedge funds and other institutional investors.

Graco Company 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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