Graco (NYSE:GGG) Hits New 12-Month Low - Time to Sell?

Key Points

• Graco shares fell 15.4% to a new 52-week low after the company’s quarterly earnings and revenue missed Wall Street expectations.
• Although third-quarter sales rose 7.9% year over year to $586.4 million and orders increased, margin compression weakened profitability: EPS was $0.81 versus $0.83 expected, while operating earnings declined 10%.
• Analysts maintain a consensus “Hold” rating with an average price target of $94.75, while Graco continues to offer a $0.295 quarterly dividend, representing a 1.7% annual yield.

Graco Inc. (NYSE:GGG - Get Free Report) shares reached a new 52-week low during trading on Friday. The stock traded as low as $67.74 and last traded at $69.2290, with a volume of 5,675,859 shares changing hands. The stock had previously closed at $81.81.

More Graco News

Here are the key news stories impacting Graco this week:

• Positive Sentiment: Graco reported record third-quarter sales of approximately $586.4 million, an 8% year-over-year increase. Organic incoming orders also rose 7%, suggesting healthy underlying demand. Graco Reports Record Third Quarter Sales
• Positive Sentiment: Graco’s technology partnership with ABB will license its high-torque Electric Torque Machines technology for data-center cooling towers and heat-rejection systems. The agreement provides exposure to the growing data-center infrastructure market, although its financial contribution is likely longer term. Graco Announces Technology Partnership with ABB
• Neutral Sentiment: Management’s earnings call emphasized continued order growth and the company’s longer-term opportunities, but investors will likely want evidence that higher sales can translate into improved earnings and margins. Graco Q3 2026 Earnings Call Transcript
• Negative Sentiment: Quarterly EPS was $0.81, below the $0.83 consensus estimate, while revenue of $586.4 million also missed analyst expectations of roughly $590 million. Graco Quarterly Earnings Report
• Negative Sentiment: Margin compression was the primary concern: operating earnings declined 10% year over year to $148.1 million, while reported results showed lower net income and diluted EPS compared with the prior-year quarter. Positive revenue growth therefore did not produce comparable profit growth. Graco Stock Drops as Q3 Results Spotlight Margin Compression
• Negative Sentiment: The earnings and revenue misses, combined with softer operating profitability, prompted a sharp decline in the stock as investors reassessed near-term earnings momentum. Operating cash flow also decreased year over year, adding to concerns about the quality of the quarter. Graco Shares Plunge as Earnings and Revenue Miss Estimates

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Wolfe Research cut shares of Graco from an "outperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. Robert W. Baird set a $94.00 price objective on shares of Graco in a research report on Friday, July 24th. DA Davidson restated a "neutral" rating and issued a $85.00 price objective on shares of Graco in a report on Monday, July 27th. Royal Bank Of Canada cut their price target on Graco from $96.00 to $95.00 and set an "outperform" rating on the stock in a report on Wednesday, October 14th. Finally, Weiss Ratings upgraded shares of Graco from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 4th. Two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Graco presently has a consensus rating of "Hold" and an average price target of $94.75.

Graco Trading Down 15.4%

The company has a market capitalization of $11.21 billion, a PE ratio of 21.77, a price-to-earnings-growth ratio of 2.54 and a beta of 0.89. The business's 50-day simple moving average is $78.52 and its 200-day simple moving average is $78.41.

Graco (NYSE:GGG - Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $0.81 earnings per share for the quarter, missing the consensus estimate of $0.83 by ($0.02). Graco had a return on equity of 19.81% and a net margin of 22.40%. The company had revenue of $586.39 million for the quarter, compared to analyst estimates of $590.17 million. During the same period in the prior year, the business posted $0.73 earnings per share. Graco's revenue for the quarter was up 7.9% on a year-over-year basis. Sell-side analysts forecast that Graco Inc. will post 3.22 EPS for the current fiscal year.

Graco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 4th. Shareholders of record on Monday, October 19th will be given a $0.2950 dividend. The ex-dividend date is Monday, October 19th. This represents a $1.18 dividend on an annualized basis and a yield of 1.7%. Graco's payout ratio is currently 37.11%.

Institutional Trading of Graco

Institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in shares of Graco during the second quarter worth about $1,396,470,000. Caisse de depot et placement du Quebec purchased a new position in Graco during the 2nd quarter worth $141,667,000. Hsbc Holdings PLC purchased a new stake in Graco in the 2nd quarter valued at approximately $100,157,000. Bank of New York Mellon Corp acquired a new position in Graco during the second quarter worth $97,625,000. Finally, Port Capital LLC purchased a new position in Graco in the second quarter worth $66,974,000. Hedge funds and other institutional investors own 93.88% of the company's stock.

About Graco

Graco Inc is a global manufacturer of equipment used to move, measure, control, dispense and apply fluids and other materials. Its products are used in industrial, commercial and residential applications involving paints, coatings, sealants, adhesives, lubricants, chemicals and other fluids.

The company's product portfolio includes pumps, valves, meters, regulators, fluid-management systems, lubrication equipment, spray-applied coating and finishing systems, sealant and adhesive equipment, and contractor-oriented painting and texture application tools.

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