Gorman-Rupp (NYSE:GRC) Shares Climb 5.5% Following Strong Earnings

Key Points

• Gorman-Rupp shares rose 5.5% after the company reported quarterly EPS of $0.86, beating estimates of $0.70, while revenue of $193.25 million exceeded the $181.55 million consensus.
• Despite the earnings beat, analyst sentiment remains cautious: the stock has a consensus rating of “Hold”, with one Buy rating and two Hold ratings.
• Insiders own 11.6% of the company, while institutional investors hold 59.26%; a company vice president recently sold 5,153 shares, substantially reducing his direct ownership.

Shares of Gorman-Rupp Company (The) (NYSE:GRC - Get Free Report) were up 5.5% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $75.87 and last traded at $73.9870. 89,337 shares traded hands during mid-day trading, a decline of 46% from the average session volume of 166,287 shares. The stock had previously closed at $70.13.

The industrial products company reported $0.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.70 by $0.16. Gorman-Rupp had a net margin of 8.88% and a return on equity of 15.55%. The firm had revenue of $193.25 million for the quarter, compared to the consensus estimate of $181.55 million.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Wall Street Zen lowered Gorman-Rupp from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 8th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Gorman-Rupp in a research report on Wednesday, September 9th. Finally, Zacks Research downgraded Gorman-Rupp from a "strong-buy" rating to a "hold" rating in a report on Monday, August 24th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold".

Insider Buying and Selling

In other Gorman-Rupp news, VP D. Patrick Wischmeier sold 5,153 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $77.62, for a total transaction of $399,975.86. Following the completion of the sale, the vice president directly owned 1,409 shares of the company's stock, valued at approximately $109,366.58. This represents a 78.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 11.60% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. GAMMA Investing LLC lifted its position in Gorman-Rupp by 34.3% during the third quarter. GAMMA Investing LLC now owns 599 shares of the industrial products company's stock valued at $45,000 after acquiring an additional 153 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in Gorman-Rupp by 1.8% in the first quarter. PNC Financial Services Group Inc. now owns 9,892 shares of the industrial products company's stock valued at $615,000 after acquiring an additional 176 shares in the last quarter. Fifth Third Bancorp grew its holdings in Gorman-Rupp by 14.1% in the first quarter. Fifth Third Bancorp now owns 1,461 shares of the industrial products company's stock worth $91,000 after purchasing an additional 180 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in Gorman-Rupp by 2,900.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 300 shares of the industrial products company's stock worth $28,000 after purchasing an additional 290 shares during the last quarter. Finally, HighTower Advisors LLC grew its holdings in Gorman-Rupp by 1.7% in the second quarter. HighTower Advisors LLC now owns 22,259 shares of the industrial products company's stock worth $2,042,000 after purchasing an additional 363 shares during the last quarter. Institutional investors own 59.26% of the company's stock.

Gorman-Rupp Stock Performance

The business has a 50-day moving average price of $74.96 and a 200-day moving average price of $77.15. The firm has a market capitalization of $1.94 billion, a price-to-earnings ratio of 30.94, a P/E/G ratio of 2.13 and a beta of 1.32. The company has a quick ratio of 1.82, a current ratio of 2.81 and a debt-to-equity ratio of 0.62.

About Gorman-Rupp

Gorman-Rupp Co designs, manufactures and sells pumps and pumping systems for moving water and other liquids. Its product portfolio includes self-priming centrifugal pumps, standard centrifugal pumps, submersible pumps, rotary gear pumps, diaphragm pumps and related pumping equipment.

The company serves a range of markets, including municipal water and wastewater treatment, construction, agriculture, industrial operations, petroleum, fire protection and emergency services. Its products are used in applications such as sewage handling, flood control, dewatering, irrigation and general fluid transfer.

Founded in 1933 by J.C.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.