Graham (NYSE:GHM) Shares Gap Down - Time to Sell?

Key Points

• Graham shares fell sharply, opening at $103.56 versus the prior close of $111.17 and last trading at $101.40.
• Analyst sentiment remains cautious, with a consensus “Hold” rating from five analysts and an average price target of $132.50; targets range from $130 to $135 among bullish analysts.
• Despite the stock decline, Graham reported strong quarterly results, with EPS of $0.49 versus the $0.27 estimate and revenue up 28.6% year over year to $71.34 million. Institutional investors own 69.46% of the company.

Graham Corporation (NYSE:GHM - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $111.17, but opened at $103.56. Graham shares last traded at $101.40, with a volume of 10,545 shares changing hands.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Weiss Ratings raised Graham from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, August 12th. Oppenheimer increased their price objective on shares of Graham to $130.00 and gave the company an "outperform" rating in a report on Thursday, June 25th. Zacks Research downgraded shares of Graham from a "strong-buy" rating to a "hold" rating in a report on Wednesday, June 10th. Northland Securities upped their target price on shares of Graham from $111.00 to $135.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 23rd. Finally, Wall Street Zen raised shares of Graham from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Graham presently has a consensus rating of "Hold" and an average target price of $132.50.

Graham Stock Performance

The business's fifty day moving average price is $108.83 and its two-hundred day moving average price is $95.85. The stock has a market capitalization of $1.21 billion, a P/E ratio of 98.76 and a beta of 1.04.

Graham (NYSE:GHM - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The industrial products company reported $0.49 EPS for the quarter, topping the consensus estimate of $0.27 by $0.22. Graham had a return on equity of 11.09% and a net margin of 4.53%.The company had revenue of $71.34 million during the quarter, compared to analyst estimates of $65.60 million. During the same quarter last year, the business posted $0.45 earnings per share. The firm's revenue was up 28.6% on a year-over-year basis. As a group, analysts forecast that Graham Corporation will post 1.87 earnings per share for the current year.

Institutional Trading of Graham

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Westport Asset Management Inc. purchased a new position in Graham during the second quarter worth $171,000. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Graham in the second quarter valued at $52,000. Silvant Capital Management LLC bought a new stake in shares of Graham in the 2nd quarter worth about $101,000. Fifth Third Bancorp bought a new stake in shares of Graham in the 1st quarter worth about $69,000. Finally, Comerica Bank boosted its stake in shares of Graham by 396.2% during the 3rd quarter. Comerica Bank now owns 1,052 shares of the industrial products company's stock worth $58,000 after purchasing an additional 840 shares during the period. Hedge funds and other institutional investors own 69.46% of the company's stock.

About Graham

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.

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