Graham (NYSE:GHM) Shares Up 13.8% - Still a Buy?

Key Points

• Graham shares jumped 13.8% to about $88.80, while trading volume was roughly 50% below its average.
• Analysts rate the stock a Moderate Buy, with four Buy and two Hold ratings and an average price target of $116.67. JPMorgan and Oppenheimer recently cut their targets, however.
• Quarterly EPS of $0.52 beat estimates of $0.34, but revenue of $69.76 million came in below the $71.07 million consensus.

Graham Corporation (NYSE:GHM - Get Free Report)'s stock price traded up 13.8% on Monday. The stock traded as high as $88.49 and last traded at $88.7950. 96,134 shares were traded during trading, a decline of 50% from the average session volume of 191,554 shares. The stock had previously closed at $78.02.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on GHM. JPMorgan Chase & Co. reduced their target price on shares of Graham from $120.00 to $100.00 and set an "overweight" rating for the company in a research note on Friday. Wall Street Zen raised shares of Graham from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. William Blair started coverage on shares of Graham in a report on Monday. They set an "outperform" rating on the stock. Oppenheimer reduced their price objective 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. Finally, Weiss Ratings lowered shares of Graham from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, October 2nd. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $116.67.

Graham Stock Performance

The stock has a market cap of $1.04 billion, a P/E ratio of 77.41 and a beta of 1.16. The business has a 50 day simple moving average of $80.15 and a 200-day simple moving average of $91.09.

Graham (NYSE:GHM - Get Free Report) last released its earnings results on Thursday, November 5th. The industrial products company reported $0.52 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.18. The company had revenue of $69.76 million for the quarter, compared to analysts' expectations of $71.07 million. Graham had a return on equity of 11.56% and a net margin of 5.05%. On average, sell-side analysts predict that Graham Corporation will post 1.90 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Russell Investments Group Ltd. grew its stake in shares of Graham by 15.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 66,349 shares of the industrial products company's stock worth $5,727,000 after acquiring an additional 9,028 shares during the period. Philadelphia Trust Co. raised its stake in Graham by 36.0% in the 3rd quarter. Philadelphia Trust Co. now owns 87,531 shares of the industrial products company's stock valued at $7,555,000 after acquiring an additional 23,157 shares during the period. Allspring Global Investments Holdings LLC raised its stake in Graham by 11.9% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 67,610 shares of the industrial products company's stock valued at $5,875,000 after acquiring an additional 7,209 shares during the period. Kornitzer Capital Management Inc. KS purchased a new stake in Graham during the third quarter valued at about $685,000. Finally, Conestoga Capital Advisors LLC lifted its holdings in Graham by 19.4% during the third quarter. Conestoga Capital Advisors LLC now owns 25,350 shares of the industrial products company's stock valued at $2,188,000 after purchasing an additional 4,110 shares during the last quarter. 69.46% of the stock is owned by institutional investors.

About Graham

Graham Corporation NYSE: GHM is a U.S.-based designer and manufacturer of engineered equipment and systems for the defense, space, and commercial markets. The company develops thermal-management, fluid-handling, vacuum, and power-generation technologies used in demanding industrial and government applications.

Graham supplies equipment for naval vessels, including surface ships and submarines, as well as systems supporting aerospace and space programs. Its products and capabilities include condensers, heat exchangers, vacuum equipment, steam and gas ejectors, cryogenic systems, and integrated propulsion and power solutions.

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