Short Interest in Brady Corporation (NYSE:BRC) Drops By 26.0%

Key Points

• Short interest in Brady Corporation (NYSE:BRC) decreased by 26.0% in September, dropping from 338,100 shares to 250,300 shares.
• Brady recently raised its quarterly dividend to $0.245 per share, reflecting a payout ratio of 24.43% and an annual yield of 1.3%.
• The company's latest earnings report showed EPS of $1.26, exceeding estimates and marking a 15.7% increase in revenue year-over-year.

Brady Corporation (NYSE:BRC - Get Free Report) was the recipient of a large decrease in short interest during the month of September. As of September 15th, there was short interest totaling 250,300 shares, a decrease of 26.0% from the August 31st total of 338,100 shares. Based on an average daily volume of 187,900 shares, the days-to-cover ratio is presently 1.3 days. Currently, 0.6% of the shares of the company are short sold. Currently, 0.6% of the shares of the company are short sold. Based on an average daily volume of 187,900 shares, the days-to-cover ratio is presently 1.3 days.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Wall Street Zen raised Brady from a "hold" rating to a "buy" rating in a research report on Friday, August 22nd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Brady in a report on Saturday, September 27th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Strong Buy".

Brady Stock Down 2.8%

Shares of BRC stock opened at $75.91 on Tuesday. The company's fifty day simple moving average is $76.11 and its two-hundred day simple moving average is $71.82. Brady has a 52 week low of $62.70 and a 52 week high of $84.03. The stock has a market cap of $3.57 billion, a P/E ratio of 19.32 and a beta of 0.78. The company has a quick ratio of 1.27, a current ratio of 1.88 and a debt-to-equity ratio of 0.08.

Brady (NYSE:BRC - Get Free Report) last issued its quarterly earnings data on Thursday, September 4th. The industrial products company reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.24 by $0.02. Brady had a return on equity of 19.29% and a net margin of 12.50%.The business had revenue of $397.28 million for the quarter, compared to analysts' expectations of $384.67 million. During the same period in the prior year, the firm earned $1.19 EPS. The company's revenue for the quarter was up 15.7% on a year-over-year basis. Brady has set its FY 2026 guidance at 4.850-5.150 EPS. Analysts predict that Brady will post 4.55 EPS for the current fiscal year.

Brady Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Friday, October 10th will be paid a dividend of $0.245 per share. The ex-dividend date of this dividend is Friday, October 10th. This is an increase from Brady's previous quarterly dividend of $0.24. This represents a $0.98 annualized dividend and a yield of 1.3%. Brady's payout ratio is presently 24.43%.

Insider Activity

In related news, CEO Russell Shaller sold 23,743 shares of the business's stock in a transaction that occurred on Thursday, September 18th. The shares were sold at an average price of $80.07, for a total transaction of $1,901,102.01. Following the completion of the sale, the chief executive officer directly owned 135,080 shares in the company, valued at approximately $10,815,855.60. The trade was a 14.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 15.60% of the company's stock.

Institutional Investors Weigh In On Brady

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Blue Trust Inc. increased its position in shares of Brady by 23.9% during the 2nd quarter. Blue Trust Inc. now owns 1,037 shares of the industrial products company's stock valued at $70,000 after purchasing an additional 200 shares during the last quarter. Victory Capital Management Inc. boosted its stake in Brady by 1.2% during the first quarter. Victory Capital Management Inc. now owns 18,509 shares of the industrial products company's stock worth $1,307,000 after buying an additional 215 shares during the period. Raymond James Financial Inc. increased its position in Brady by 0.9% during the second quarter. Raymond James Financial Inc. now owns 26,093 shares of the industrial products company's stock valued at $1,774,000 after acquiring an additional 238 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of Brady by 89.0% in the second quarter. EverSource Wealth Advisors LLC now owns 684 shares of the industrial products company's stock valued at $46,000 after acquiring an additional 322 shares during the period. Finally, Quarry LP bought a new stake in shares of Brady in the 1st quarter worth about $25,000. 76.28% of the stock is currently owned by hedge funds and other institutional investors.

About Brady

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The company offers materials, printing systems, RFID, and bar code scanners for product identification, brand protection labeling, work in process labeling, finished product identification, and industrial track and trace applications; safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, lockout/tagout device, and software and services for safety compliance auditing, procedure writing, and training; and hand-held printers, wire markers, sleeves, and tags for wire identification.

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