Graham (NYSE:GHM) Shares Gap Up - Here's What Happened

Key Points

• Graham shares opened higher, rising from a prior close of $86.90 to $91.05 before trading at approximately $89.70.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of $128.33; JPMorgan initiated coverage with an overweight rating and a $120 target.
• Graham reported quarterly EPS of $0.49, beating estimates by $0.22, while revenue reached $71.34 million and increased 28.6% year over year.

Graham Corporation (NYSE:GHM - Get Free Report) shares gapped up prior to trading on Friday. The stock had previously closed at $86.90, but opened at $91.05. Graham shares last traded at $89.6960, with a volume of 17,857 shares trading hands.

Wall Street Analysts Forecast Growth

GHM has been the topic of a number of recent analyst reports. Weiss Ratings raised shares of Graham from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, September 16th. Wall Street Zen upgraded shares of Graham from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Zacks Research downgraded shares of Graham from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 10th. JPMorgan Chase & Co. assumed coverage on shares of Graham in a research note on Friday. They set an "overweight" rating and a $120.00 target price on the stock. Finally, Northland Securities raised their target price on Graham from $111.00 to $135.00 and gave the company an "outperform" rating in a research report on Tuesday, June 23rd. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Graham has a consensus rating of "Moderate Buy" and an average price target of $128.33.

Graham Stock Performance

The company has a 50 day simple moving average of $94.54 and a 200 day simple moving average of $97.22. The company has a market capitalization of $1.07 billion, a PE ratio of 88.45 and a beta of 1.08.

Graham (NYSE:GHM - Get Free Report) last released its earnings results on Thursday, August 6th. The industrial products company reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.22. The business 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%.The business's quarterly revenue was up 28.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.45 earnings per share. As a group, equities research analysts anticipate that Graham Corporation will post 1.87 EPS for the current year.

Hedge Funds Weigh In On Graham

Hedge funds and other institutional investors have recently modified their holdings of the business. Squarepoint Ops LLC acquired a new stake in Graham in the 2nd quarter valued at about $4,475,000. Arizona State Retirement System purchased a new stake in shares of Graham in the second quarter valued at approximately $350,000. Corient Private Wealth LP increased its holdings in shares of Graham by 9.5% in the second quarter. Corient Private Wealth LP now owns 2,863 shares of the industrial products company's stock valued at $354,000 after purchasing an additional 249 shares during the last quarter. Angeles Wealth Management LLC purchased a new position in Graham during the second quarter worth approximately $249,000. Finally, Concurrent Investment Advisors LLC acquired a new position in Graham during the second quarter worth $558,000. 69.46% of the stock is 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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