Griffon (NYSE:GFF) Sets New 52-Week High - What's Next?

Key Points

• Griffon shares reached a new 52-week high, trading as high as $98.37 after closing previously at $96.38, extending recent momentum in the stock.
• Wall Street remains moderately bullish on GFF, with an average price target of $115 and a consensus rating of “Moderate Buy,” even as a few firms recently trimmed their ratings.
• The company posted mixed fundamentals in its latest quarter: EPS and revenue both beat estimates, but revenue fell 31% from a year ago and insiders have been active sellers in recent months.

Griffon Corporation (NYSE:GFF - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $98.37 and last traded at $97.5460, with a volume of 329366 shares changing hands. The stock had previously closed at $96.38.

Analysts Set New Price Targets

Several brokerages recently commented on GFF. Weiss Ratings cut Griffon from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 11th. Robert W. Baird set a $115.00 price objective on Griffon in a report on Friday, May 8th. Wall Street Zen cut shares of Griffon from a "buy" rating to a "hold" rating in a research note on Saturday, May 16th. Finally, Zacks Research raised shares of Griffon from a "strong sell" rating to a "hold" rating in a report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $115.00.

Griffon Stock Up 1.2%

The stock has a market capitalization of $4.47 billion, a price-to-earnings ratio of 750.41 and a beta of 1.42. The business has a 50-day moving average of $89.32 and a 200-day moving average of $83.19. The company has a debt-to-equity ratio of 14.77, a quick ratio of 2.43 and a current ratio of 2.86.

Griffon (NYSE:GFF - Get Free Report) last posted its earnings results on Thursday, May 7th. The conglomerate reported $1.05 EPS for the quarter, beating analysts' consensus estimates of $0.99 by $0.06. The company had revenue of $421.86 million for the quarter, compared to analysts' expectations of $414.63 million. Griffon had a net margin of 0.31% and a return on equity of 298.42%. Griffon's revenue for the quarter was down 31.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.23 earnings per share. On average, sell-side analysts expect that Griffon Corporation will post 5.17 EPS for the current year.

Griffon Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Friday, May 29th were issued a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Friday, May 29th. Griffon's dividend payout ratio is currently 676.92%.

Insider Activity at Griffon

In other news, CEO Ronald J. Kramer sold 100,000 shares of the firm's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $94.92, for a total transaction of $9,492,000.00. Following the completion of the transaction, the chief executive officer directly 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 transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Robert F. Mehmel sold 7,873 shares of Griffon stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $96.02, for a total value of $755,965.46. Following the completion of the sale, the chief operating officer directly owned 790,352 shares of the company's stock, valued at $75,889,599.04. The trade was a 0.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 125,223 shares of company stock worth $11,902,257. Company insiders own 10.20% of the company's stock.

Hedge Funds Weigh In On Griffon

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Hantz Financial Services Inc. increased its stake in Griffon by 149.6% during the fourth quarter. Hantz Financial Services Inc. now owns 352 shares of the conglomerate's stock worth $26,000 after purchasing an additional 211 shares during the period. Scarborough Advisors LLC purchased a new position in shares of Griffon in the first quarter valued at approximately $29,000. Huntington National Bank grew its holdings in shares of Griffon by 645.0% in the third quarter. Huntington National Bank now owns 447 shares of the conglomerate's stock valued at $34,000 after purchasing an additional 387 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new position in shares of Griffon in the fourth quarter valued at approximately $34,000. Finally, Caitong International Asset Management Co. Ltd grew its holdings in shares of Griffon by 362.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 495 shares of the conglomerate's stock valued at $36,000 after purchasing an additional 388 shares in the last quarter. 73.22% of the stock is currently owned by hedge funds and other institutional investors.

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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