Graham (NYSE:GHM) Raised to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Graham from “sell” to “hold,” while the broader analyst consensus remains “hold” with a $132.50 price target. Other firms recently issued outperform ratings and raised targets to as high as $135.
• Graham’s latest quarter exceeded expectations, with EPS of $0.49 versus $0.27 expected and revenue of $71.34 million versus $65.60 million expected; revenue rose 28.6% year over year.
• Growth prospects remain supported by a record $557.2 million backlog and more than $43 million in new defense contracts, although net income and diluted EPS declined year over year and a $50 million stock issuance may cause dilution.

Graham (NYSE:GHM - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other brokerages also recently commented on GHM. Northland Securities raised their price objective on Graham from $111.00 to $135.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 23rd. Oppenheimer boosted their price objective on Graham to $130.00 and gave the company an "outperform" rating in a research report on Thursday, June 25th. Zacks Research lowered Graham from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, June 10th. Finally, Weiss Ratings cut Graham from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, July 29th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $132.50.

Graham Stock Up 6.6%

NYSE GHM opened at $111.89 on Friday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.68 and a current ratio of 1.00. The firm has a 50-day simple moving average of $107.39 and a 200 day simple moving average of $93.58. Graham has a twelve month low of $46.58 and a twelve month high of $125.82. The stock has a market cap of $1.31 billion, a PE ratio of 107.59 and a beta of 1.04.

Graham (NYSE:GHM - Get Free Report) last released its earnings results on Thursday, August 6th. The industrial products company reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.22. Graham had a return on equity of 12.32% and a net margin of 4.53%.The business had revenue of $71.34 million for the quarter, compared to the consensus estimate of $65.60 million. During the same period last year, the business earned $0.45 earnings per share. The firm's revenue for the quarter was up 28.6% compared to the same quarter last year. On average, research analysts forecast that Graham will post 1.89 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rhumbline Advisers grew its stake in shares of Graham by 40.6% in the 2nd quarter. Rhumbline Advisers now owns 14,755 shares of the industrial products company's stock valued at $731,000 after purchasing an additional 4,257 shares during the period. Quantbot Technologies LP bought a new position in shares of Graham during the 2nd quarter worth approximately $325,000. Arrowstreet Capital Limited Partnership bought a new position in shares of Graham during the 2nd quarter worth approximately $226,000. Invesco Ltd. lifted its position in shares of Graham by 1,396.0% during the 2nd quarter. Invesco Ltd. now owns 115,893 shares of the industrial products company's stock worth $5,738,000 after buying an additional 108,146 shares during the period. Finally, Walleye Capital LLC acquired a new stake in Graham in the 2nd quarter valued at $783,000. Institutional investors own 69.46% of the company's stock.

Key Stories Impacting Graham

Here are the key news stories impacting Graham this week:

• Positive Sentiment: Earnings and revenue exceeded expectations. Graham reported quarterly EPS of $0.49, above the $0.27 consensus estimate, while revenue reached $71.34 million versus expectations of $65.60 million. Revenue increased 28.6% year over year. Graham Q1 earnings and revenues surpass estimates
• Positive Sentiment: Orders and backlog support future growth. First-quarter orders totaled $95.9 million, producing a 1.3x book-to-bill ratio, and backlog reached a record $557.2 million. Management reaffirmed fiscal 2027 revenue guidance of $285 million to $295 million, broadly in line with the $289 million analyst consensus. Graham fiscal Q1 net sales and backlog update
• Positive Sentiment: Defense contract wins reinforce demand. Graham was awarded more than $43 million in contracts for mission-critical submarine and turbomachinery products, supporting its defense-focused growth outlook. Graham awarded more than $43 million in defense contracts
• Positive Sentiment: An investor letter cited Graham’s strong execution and improving sentiment toward small-cap stocks as factors supporting the company’s recent performance. Strong execution drove Graham higher
• Neutral Sentiment: News about a Russia sanctions bill sponsored by U.S. Senator Lindsey Graham is unrelated to Graham Corporation NYSE: GHM and should not be interpreted as a company-specific catalyst. Russia sanctions bill advances in Senate
• Negative Sentiment: Despite strong sales, net income declined to $3.9 million from $4.6 million a year earlier, and diluted EPS fell to $0.33 from $0.42 in the prior-year period. The company also issued $50 million of stock during the quarter, creating potential dilution.

Graham Company Profile

Graham Corporation NYSE: GHM is a U.S.-based industrial engineering company that designs, manufactures and services vacuum and heat transfer equipment. Its core offerings include liquid ring vacuum pumps, surface condensers, heat exchangers and custom-engineered vacuum systems. These products play a critical role in energy-intensive industries, where reliable removal of non-condensable gases and efficient heat exchange are vital to process performance.

The company's technologies find application across a range of end markets, including power generation, petrochemical, oil and gas, LNG, and semiconductor manufacturing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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