Griffon (NYSE:GFF) Stock Price Passes Above 200-Day Moving Average - Time to Sell?

Key Points

• Griffon shares rose above their 200-day moving average on Tuesday, trading as high as $92.47 and last changing hands near $90.82. The move came with about 248,602 shares traded.
• Analyst sentiment is mixed but still constructive, with a consensus rating of “Moderate Buy” and an average price target of $115.00. Recent moves included downgrades from Wall Street Zen and Weiss Ratings, while Robert W. Baird maintained a $115 target.
• Recent fundamentals were solid despite lower year-over-year revenue: Griffon beat quarterly EPS estimates at $1.05 versus $0.99 expected, and revenue also came in above forecasts. The company also paid a quarterly dividend of $0.22 per share, while insiders have been selling stock over the past 90 days.

Griffon Corporation (NYSE:GFF - Get Free Report) shares crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $84.25 and traded as high as $92.47. Griffon shares last traded at $90.8230, with a volume of 248,602 shares traded.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Wall Street Zen downgraded Griffon from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. Weiss Ratings downgraded Griffon from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. Zacks Research upgraded Griffon from a "strong sell" rating to a "hold" rating in a report on Friday, May 8th. Finally, Robert W. Baird set a $115.00 price objective on shares of Griffon in a research 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's stock. According to MarketBeat.com, Griffon has a consensus rating of "Moderate Buy" and an average price target of $115.00.

Griffon Trading Up 1.0%

The business's 50-day simple moving average is $89.36 and its two-hundred day simple moving average is $84.25. The company has a current ratio of 2.86, a quick ratio of 2.43 and a debt-to-equity ratio of 14.77. The company has a market capitalization of $4.17 billion, a PE ratio of 698.69 and a beta of 1.41.

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

Griffon Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Friday, May 29th were issued a dividend of $0.22 per share. The ex-dividend date was Friday, May 29th. This represents a $0.88 annualized dividend and a yield of 1.0%. Griffon's payout ratio is currently 676.92%.

Insider Buying and Selling

In other news, CEO Ronald J. Kramer sold 100,000 shares of the stock in a transaction that occurred 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 approximately $169,365,471.24. This represents a 5.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, COO Robert F. Mehmel sold 7,873 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $96.02, for a total transaction of $755,965.46. Following 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 position. 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. Over the last ninety days, insiders sold 129,389 shares of company stock worth $12,309,525. 10.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in GFF. Hantz Financial Services Inc. raised its stake in shares of Griffon by 149.6% in the 4th quarter. Hantz Financial Services Inc. now owns 352 shares of the conglomerate's stock valued at $26,000 after purchasing an additional 211 shares in the last quarter. Scarborough Advisors LLC bought a new stake in Griffon in the first quarter valued at about $29,000. Hilton Head Capital Partners LLC acquired a new stake in Griffon during the fourth quarter valued at approximately $34,000. Caitong International Asset Management Co. Ltd raised its stake in Griffon by 362.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 495 shares of the conglomerate's stock valued at $36,000 after buying an additional 388 shares in the last quarter. Finally, Osterweis Capital Management Inc. bought a new position in Griffon during the 2nd quarter worth approximately $37,000. 73.22% of the stock is owned by institutional investors and hedge funds.

Griffon Company Profile

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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