Wall Street Zen Downgrades Griffon (NYSE:GFF) to Hold

Key Points

• Wall Street Zen downgraded Griffon (NYSE:GFF) from a "buy" to a "hold" in its latest research report.
• Analyst views remain mixed but the consensus is a Moderate Buy with a consensus target price of $107.67 (2 Strong Buy, 2 Buy, 1 Hold, 1 Sell).
• Griffon beat quarterly expectations (EPS $1.45 vs. $1.34; revenue $649.1M vs. $618.35M) but currently trades near $87.67 with a high P/E (~95) and has seen notable insider selling.

Griffon (NYSE:GFF - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also recently commented on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Griffon in a report on Friday, March 27th. Robert W. Baird set a $108.00 target price on shares of Griffon in a report on Friday, February 6th. Stephens increased their target price on shares of Griffon from $92.00 to $115.00 and gave the stock an "overweight" rating in a report on Monday, February 9th. Finally, Zacks Research cut shares of Griffon from a "hold" rating to a "strong sell" rating in a report on Tuesday, February 17th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $107.67.

Griffon Stock Up 4.6%

Griffon stock opened at $87.67 on Friday. The stock has a market capitalization of $4.08 billion, a PE ratio of 95.29, a price-to-earnings-growth ratio of 1.40 and a beta of 1.36. Griffon has a twelve month low of $63.92 and a twelve month high of $97.58. The company has a quick ratio of 1.27, a current ratio of 2.55 and a debt-to-equity ratio of 12.36. The company has a 50 day moving average of $79.78 and a 200-day moving average of $77.72.

Griffon (NYSE:GFF - Get Free Report) last announced its earnings results on Thursday, February 5th. The conglomerate reported $1.45 EPS for the quarter, topping the consensus estimate of $1.34 by $0.11. Griffon had a net margin of 1.76% and a return on equity of 228.83%. The business had revenue of $649.09 million during the quarter, compared to analysts' expectations of $618.35 million. During the same quarter in the prior year, the company posted $1.39 earnings per share. The firm's revenue was up 2.6% on a year-over-year basis. On average, equities research analysts anticipate that Griffon will post 5.55 EPS for the current fiscal year.

Insider Buying and Selling at Griffon

In other Griffon news, SVP Seth L. Kaplan sold 15,000 shares of the company's stock in a transaction on Monday, February 9th. The shares were sold at an average price of $95.44, for a total transaction of $1,431,600.00. Following the sale, the senior vice president directly owned 119,747 shares of the company's stock, valued at approximately $11,428,653.68. This represents a 11.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director James W. Sight sold 3,070 shares of the company's stock in a transaction on Monday, February 9th. The stock was sold at an average price of $96.15, for a total transaction of $295,180.50. Following the sale, the director directly owned 13,872 shares in the company, valued at $1,333,792.80. This trade represents a 18.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 10.20% of the company's stock.

Institutional Trading of Griffon

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Voss Capital LP raised its position in Griffon by 13.7% during the third quarter. Voss Capital LP now owns 1,535,000 shares of the conglomerate's stock worth $116,890,000 after acquiring an additional 185,000 shares in the last quarter. AlphaQuest LLC raised its position in Griffon by 2,273.9% during the third quarter. AlphaQuest LLC now owns 14,457 shares of the conglomerate's stock worth $1,101,000 after acquiring an additional 13,848 shares in the last quarter. MHR Fund Management LLC bought a new stake in Griffon during the third quarter worth $9,519,000. SG Americas Securities LLC raised its position in shares of Griffon by 396.8% in the fourth quarter. SG Americas Securities LLC now owns 66,088 shares of the conglomerate's stock valued at $4,867,000 after purchasing an additional 52,786 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH raised its position in shares of Griffon by 11.3% in the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 86,500 shares of the conglomerate's stock valued at $6,587,000 after purchasing an additional 8,773 shares during the period. 73.22% of the stock is owned by institutional investors.

About Griffon

Griffon Corporation NYSE: GFF is a diversified management and holding company whose subsidiaries design, manufacture and market products for residential, commercial and defense applications. Operating through three primary platforms—Home & Building Products, Defense Electronics and Specialty Industrial—Griffon's portfolio spans consumer and industrial brands with a focus on long-lived products and recurring aftermarket opportunities.

In the Home & Building Products segment, Griffon's Clopay Building Products division is a leading North American manufacturer of residential and commercial garage doors, specializing in steel, fiberglass and composite designs as well as decorative carriage-house styles.

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