Graco (NYSE:GGG) Sets New 1-Year Low - Here's Why

Key Points

• 52-week low: Graco shares fell to as low as $78.27 (last about $78.99), down roughly 1.7%, after reporting quarterly EPS of $0.66 versus $0.75 expected and revenue of $540.1M versus $561.4M expected.
• Analysts are mixed: Jefferies raised its price target to $105 with a "buy" rating while others cut targets or downgraded, leaving a MarketBeat consensus rating of "Hold" and a $94.25 target.
• Company fundamentals and shareholder actions: Graco has a $12.92B market cap and a P/E of 25.4, declared a $0.295 quarterly dividend (1.5% yield), and saw recent insider selling alongside a director purchase.

Shares of Graco Inc. (NYSE:GGG - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $78.27 and last traded at $78.9850, with a volume of 115144 shares trading hands. The stock had previously closed at $79.19.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on GGG. Jefferies Financial Group lifted their price objective on shares of Graco from $100.00 to $105.00 and gave the company a "buy" rating in a report on Wednesday, January 28th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $95.00 price target on shares of Graco in a report on Friday, April 24th. Weiss Ratings lowered shares of Graco from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday. Robert W. Baird cut their price target on shares of Graco from $96.00 to $92.00 and set a "neutral" rating on the stock in a report on Friday, April 24th. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of Graco in a report on Tuesday, January 27th. Three investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $94.25.

Graco Stock Down 1.7%

The company's 50 day moving average price is $86.83 and its 200 day moving average price is $85.45. The firm has a market capitalization of $12.92 billion, a price-to-earnings ratio of 25.36, a P/E/G ratio of 2.53 and a beta of 0.96.

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

Graco Announces Dividend

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

Insider Activity at Graco

In related news, insider Timothy R. White sold 1,469 shares of the business's stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $90.70, for a total transaction of $133,238.30. Following the completion of the transaction, the insider directly owned 51,430 shares in the company, valued at $4,664,701. The trade was a 2.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Andrea Helen Simon bought 1,240 shares of the firm's stock in a transaction that occurred on Monday, April 27th. The shares were acquired at an average price of $80.53 per share, with a total value of $99,857.20. Following the completion of the transaction, the director directly owned 1,240 shares of the company's stock, valued at $99,857.20. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have sold 17,171 shares of company stock valued at $1,543,568. 2.18% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Whipplewood Advisors LLC lifted its position in Graco by 2,650.0% during 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. Root Financial Partners LLC acquired a new position in Graco during the third quarter valued at $29,000. CX Institutional lifted its position in Graco by 316.7% during the third quarter. CX Institutional now owns 475 shares of the industrial products company's stock valued at $40,000 after purchasing an additional 361 shares during the period. Assetmark Inc. lifted its position in Graco by 42.6% during the third quarter. Assetmark Inc. now owns 465 shares of the industrial products company's stock valued at $40,000 after purchasing an additional 139 shares during the period. Finally, Field & Main Bank acquired a new position in Graco during the fourth quarter valued at $41,000. 93.88% of the stock is currently owned by institutional investors and hedge funds.

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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