Griffon (NYSE:GFF) Shares Gap Down - Here's Why

Key Points

• Griffon Corporation shares opened at $74.11, significantly lower than the previous closing price of $82.34, and were last trading at $70.97, reflecting a 10.8% decline.
• Despite the drop in share price, Griffon received several analyst upgrades, with a consensus rating of "Strong Buy" and a price target of $98.20 among analysts.
• The company announced a quarterly dividend of $0.18 per share, with an annualized yield of 1.0%, contributing to its dividend payout ratio of 14.91%.

Shares of Griffon Corporation (NYSE:GFF - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $82.34, but opened at $74.11. Griffon shares last traded at $70.97, with a volume of 138,970 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Wall Street Zen upgraded Griffon from a "buy" rating to a "strong-buy" rating in a report on Friday, May 9th. Raymond James Financial reaffirmed a "strong-buy" rating and set a $100.00 price target (up from $95.00) on shares of Griffon in a research report on Friday, May 9th. Finally, Robert W. Baird increased their price objective on shares of Griffon from $92.00 to $100.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 22nd. Three investment analysts have rated the stock with a buy rating and three have assigned a strong buy rating to the company's stock. According to MarketBeat, Griffon has an average rating of "Strong Buy" and a consensus price target of $98.20.

Griffon Trading Down 10.8%

The firm has a fifty day moving average of $74.70 and a 200 day moving average of $72.88. The firm has a market capitalization of $3.45 billion, a PE ratio of 15.28, a P/E/G ratio of 0.89 and a beta of 1.09. The company has a debt-to-equity ratio of 7.12, a quick ratio of 1.48 and a current ratio of 2.78.

Griffon (NYSE:GFF - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The conglomerate reported $1.50 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.50. Griffon had a net margin of 9.06% and a return on equity of 114.46%. During the same period in the prior year, the business earned $1.24 earnings per share. Griffon's quarterly revenue was down 5.3% compared to the same quarter last year. Equities research analysts expect that Griffon Corporation will post 5.55 EPS for the current year.

Griffon Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Friday, August 29th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.0%. Griffon's dividend payout ratio is currently 14.91%.

Hedge Funds Weigh In On Griffon

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Voss Capital LP lifted its stake in shares of Griffon by 10.5% in the first quarter. Voss Capital LP now owns 1,332,051 shares of the conglomerate's stock worth $95,242,000 after acquiring an additional 127,051 shares in the last quarter. Fuller & Thaler Asset Management Inc. raised its position in shares of Griffon by 52.3% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 951,120 shares of the conglomerate's stock valued at $68,005,000 after purchasing an additional 326,663 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Griffon by 36.0% during the 4th quarter. Invesco Ltd. now owns 892,124 shares of the conglomerate's stock valued at $63,582,000 after buying an additional 236,179 shares during the last quarter. LSV Asset Management grew its position in shares of Griffon by 4.9% during the first quarter. LSV Asset Management now owns 828,013 shares of the conglomerate's stock worth $59,203,000 after buying an additional 38,818 shares in the last quarter. Finally, Jefferies Financial Group Inc. bought a new stake in shares of Griffon in the first quarter worth $53,994,000. 73.22% of the stock is owned by hedge funds and other institutional investors.

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications.

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