Griffon (NYSE:GFF) Upgraded at Zacks Research

Key Points

• Zacks Research upgraded Griffon from “hold” to “strong buy.” The broader analyst consensus is “buy,” with an average price target of $122.50 versus the stock’s $107.16 opening price.
• Griffon exceeded quarterly expectations, reporting EPS of $1.51 versus $1.34 expected and revenue of $481.4 million versus $457.7 million expected, although revenue declined 21.5% year over year.
• Insiders sold approximately $26.4 million worth of shares over the past three months, including sizeable sales by the CEO and COO under pre-arranged Rule 10b5-1 plans; institutional investors still own 73.22% of the stock.

Griffon (NYSE:GFF - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Thursday,Zacks.com reports.

A number of other equities analysts have also recently commented on GFF. Wall Street Zen cut shares of Griffon from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. Robert W. Baird set a $125.00 target price on shares of Griffon in a research note on Thursday. Weiss Ratings downgraded shares of Griffon from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. Finally, Stephens increased their price target on shares of Griffon from $115.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $122.50.

Griffon Stock Performance

GFF opened at $107.16 on Thursday. Griffon has a 12-month low of $65.01 and a 12-month high of $108.57. The stock has a market cap of $4.85 billion, a price-to-earnings ratio of 27.34 and a beta of 1.44. The business has a 50 day moving average of $91.92 and a 200-day moving average of $86.07. The company has a quick ratio of 2.43, a current ratio of 2.41 and a debt-to-equity ratio of 9.75.

Griffon (NYSE:GFF - Get Free Report) last posted its earnings results on Wednesday, August 5th. The conglomerate reported $1.51 earnings per share for the quarter, topping analysts' consensus estimates of $1.34 by $0.17. Griffon had a return on equity of 249.31% and a net margin of 8.08%.The business had revenue of $481.37 million for the quarter, compared to analyst estimates of $457.70 million. During the same period in the previous year, the firm earned $1.50 EPS. The firm's revenue was down 21.5% compared to the same quarter last year. On average, equities research analysts expect that Griffon will post 5.3 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Robert F. Mehmel sold 14,852 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $105.18, for a total transaction of $1,562,133.36. Following the sale, the chief operating officer owned 748,839 shares of the company's stock, valued at $78,762,886.02. This represents a 1.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ronald J. Kramer sold 100,000 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $102.42, for a total value of $10,242,000.00. Following the transaction, the chief executive officer owned 1,684,297 shares in the company, valued at approximately $172,505,698.74. This trade represents a 5.60% 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. Insiders have sold 266,450 shares of company stock worth $26,380,753 in the last three months. 10.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Corient Private Wealth LLC boosted its stake in Griffon by 3.4% during the fourth quarter. Corient Private Wealth LLC now owns 3,546 shares of the conglomerate's stock worth $261,000 after acquiring an additional 115 shares in the last quarter. O Shaughnessy Asset Management LLC grew its holdings in Griffon by 1.3% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 10,299 shares of the conglomerate's stock worth $759,000 after purchasing an additional 132 shares during the period. Oregon Public Employees Retirement Fund increased its stake in Griffon by 1.5% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 8,929 shares of the conglomerate's stock valued at $658,000 after purchasing an additional 136 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in Griffon by 30.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 585 shares of the conglomerate's stock valued at $43,000 after purchasing an additional 137 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Griffon by 33.0% during the second quarter. EverSource Wealth Advisors LLC now owns 572 shares of the conglomerate's stock valued at $41,000 after purchasing an additional 142 shares during the period. Institutional investors and hedge funds own 73.22% of the company's stock.

Key Headlines Impacting Griffon

Here are the key news stories impacting Griffon this week:

• Positive Sentiment: Quarterly earnings beat expectations: Griffon reported adjusted earnings of $1.51 per share, exceeding the $1.34 consensus estimate, while revenue of $481.4 million surpassed expectations of $457.7 million. Pricing improvements and volume growth—particularly from residential demand—helped offset a 21.5% year-over-year revenue decline. Management reaffirmed its fiscal 2026 outlook, supporting the view that operating momentum remains intact. GFF Q3 Earnings Beat Estimates on Pricing and Volume Growth
• Positive Sentiment: Analyst remains bullish after results: An investment analysis reiterated a Buy view, citing Griffon’s more focused business profile and an intact long-term growth story following the earnings release. Griffon Corporation: A Simpler Business With An Intact Growth Story
• Positive Sentiment: Shares reached a new 52-week high: The strong earnings performance and reaffirmed guidance have helped drive GFF to fresh annual highs, signaling strong market momentum. Griffon Reaches New 52-Week High After Strong Earnings
• Neutral Sentiment: Historical financials were recast: Griffon updated fiscal 2023–2025 financial information after strategic AMES transactions. The revisions improve comparability following the company’s portfolio changes, but investors may review the restated figures for any effects on historical trends or reported performance. Griffon Recasts Financials After Strategic AMES Transactions
• Negative Sentiment: Executives sold shares: CEO Ronald J. Kramer sold 100,000 shares for approximately $10.2 million, while COO Robert F. Mehmel sold a combined 37,061 shares worth about $3.8 million. Both sales were made under pre-arranged Rule 10b5-1 plans, and the executives still retain substantial holdings, reducing—but not eliminating—concern about insider selling.

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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