Griffon (NYSE:GFF) Sets New 52-Week High Following Strong Earnings

Key Points

• Griffon shares hit a new 52-week high, trading as high as $103 after rising 7.3% following the earnings report.
• The company reported quarterly EPS of $1.51, beating the $1.34 consensus estimate, while revenue of $481.37 million also exceeded expectations. However, revenue declined 21.5% year over year.
• Analysts maintain a “Moderate Buy” consensus rating with a $115 price target, though insiders sold approximately $12.3 million of stock over the past 90 days.

Griffon Corporation (NYSE:GFF - Get Free Report) reached a new 52-week high on Wednesday following a better than expected earnings announcement. The stock traded as high as $103.00 and last traded at $99.21, with a volume of 54191 shares traded. The stock had previously closed at $93.58.

The conglomerate reported $1.51 EPS for the quarter, topping the consensus estimate of $1.34 by $0.17. Griffon had a return on equity of 298.42% and a net margin of 0.31%.The firm had revenue of $481.37 million during the quarter, compared to analysts' expectations of $457.70 million. During the same period in the previous year, the firm posted $1.50 EPS. Griffon's revenue for the quarter was down 21.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Zacks Research upgraded shares of Griffon from a "strong sell" rating to a "hold" rating in a report on Friday, May 8th. Weiss Ratings lowered Griffon from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. Wall Street Zen cut shares of Griffon from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Finally, Robert W. Baird set a $115.00 target price on Griffon in a research report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $115.00.

Insider Transactions at Griffon

In related news, CEO Ronald J. Kramer sold 100,000 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $94.92, for a total value of $9,492,000.00. Following the completion of the sale, the chief executive officer owned 1,784,297 shares in the company, valued at $169,365,471.24. This trade represents a 5.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Robert F. Mehmel sold 4,166 shares of Griffon stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $97.76, for a total value of $407,268.16. Following the completion of the sale, the chief operating officer owned 785,900 shares in the company, valued at approximately $76,829,584. This trade represents a 0.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 129,389 shares of company stock valued at $12,309,525. 10.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Griffon

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada grew its position in Griffon by 20.2% during the first quarter. Royal Bank of Canada now owns 94,955 shares of the conglomerate's stock worth $6,790,000 after buying an additional 15,925 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Griffon by 9.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,447 shares of the conglomerate's stock valued at $1,676,000 after acquiring an additional 2,047 shares during the period. NewEdge Advisors LLC purchased a new stake in shares of Griffon during the 1st quarter worth approximately $49,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Griffon by 21.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 85,035 shares of the conglomerate's stock worth $6,080,000 after acquiring an additional 14,764 shares in the last quarter. Finally, Strs Ohio acquired a new stake in shares of Griffon in the 1st quarter worth approximately $57,000. 73.22% of the stock is owned by institutional investors and hedge funds.

Griffon Trading Up 7.3%

The firm has a market cap of $4.60 billion, a price-to-earnings ratio of 772.21 and a beta of 1.44. The business has a fifty day moving average of $90.89 and a two-hundred day moving average of $85.65. The company has a debt-to-equity ratio of 14.77, a quick ratio of 2.43 and a current ratio of 2.86.

About Griffon

Griffon Corporation NYSE: GFF is a diversified management and holding company whose subsidiaries design, manufacture and market products for residential, commercial and defense applications. Operating through three primary platforms—Home & Building Products, Defense Electronics and Specialty Industrial—Griffon's portfolio spans consumer and industrial brands with a focus on long-lived products and recurring aftermarket opportunities.

In the Home & Building Products segment, Griffon's Clopay Building Products division is a leading North American manufacturer of residential and commercial garage doors, specializing in steel, fiberglass and composite designs as well as decorative carriage-house styles.

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