Graham (NYSE:GHM) Shares Down 7.2% - Here's What Happened

Key Points

• Graham shares fell 7.2% to $71.98 on Wednesday, with trading volume down 83% from the stock’s average daily volume.
• Despite the sell-off, analysts maintain a generally positive outlook: Graham has a “Moderate Buy” consensus rating and an average price target of $123.33.
• The company recently beat quarterly expectations, reporting $0.49 in EPS versus $0.27 expected and $71.34 million in revenue, up 28.6% year over year.

Graham Corporation (NYSE:GHM - Get Free Report) fell 7.2% on Wednesday. The company traded as low as $72.94 and last traded at $71.98. 31,096 shares traded hands during trading, a decline of 83% from the average daily volume of 182,786 shares. The stock had previously closed at $77.58.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. JPMorgan Chase & Co. initiated coverage on shares of Graham in a research note on Friday, October 2nd. They issued an "overweight" rating and a $120.00 price target on the stock. Northland Securities upped their price objective on Graham from $111.00 to $135.00 and gave the stock an "outperform" rating in a research note on Tuesday, June 23rd. Oppenheimer dropped their price target on shares of Graham from $130.00 to $115.00 and set an "outperform" rating for the company in a research report on Thursday, October 8th. Wall Street Zen raised Graham from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Finally, Weiss Ratings downgraded shares of Graham from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, October 2nd. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, Graham currently has an average rating of "Moderate Buy" and an average price target of $123.33.

Graham Trading Down 8.4%

The stock has a market capitalization of $834.54 million, a PE ratio of 68.25 and a beta of 1.08. The business's 50 day moving average is $92.29 and its 200 day moving average is $97.33.

Graham (NYSE:GHM - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The industrial products company reported $0.49 EPS for the quarter, beating the consensus estimate of $0.27 by $0.22. The company had revenue of $71.34 million for the quarter, compared to the consensus estimate of $65.60 million. Graham had a return on equity of 11.09% and a net margin of 4.53%. Graham's quarterly revenue was up 28.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.45 EPS. As a group, analysts anticipate that Graham Corporation will post 1.87 EPS for the current year.

Institutional Investors Weigh In On Graham

A number of hedge funds have recently made changes to their positions in the stock. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Graham during the second quarter worth approximately $52,000. Fifth Third Bancorp acquired a new stake in shares of Graham in the 1st quarter valued at about $69,000. Silvant Capital Management LLC acquired a new position in Graham during the second quarter worth approximately $101,000. Westport Asset Management Inc. acquired a new stake in Graham during the 2nd quarter worth $171,000. Finally, AssuredPartners Investment Advisors LLC acquired a new stake in shares of Graham during the second quarter worth about $214,000. 69.46% of the stock is currently owned by hedge funds and other institutional investors.

About Graham

Graham Corporation NYSE: GHM designs and manufactures specialized equipment and systems for defense, aerospace, and energy markets. Its products include vacuum equipment, heat exchangers, condensers, ejectors, and related thermal-management systems used in demanding industrial and government applications.

The company serves the U.S. Navy and other government customers, as well as commercial clients in areas such as power generation and process industries. Graham also provides engineering, fabrication, testing, installation, and aftermarket support services for its equipment and systems.

Founded in 1936 and headquartered in Batavia, New York, Graham has expanded its capabilities through acquisitions, including Barber-Nichols, a Colorado-based engineering and manufacturing business focused on turbomachinery, propulsion, and power-conversion technologies.

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