Graco (NYSE:GGG) Shares Gap Down After Earnings Miss

Shares of Graco Inc. (NYSE:GGG) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $89.35, but opened at $82.95. Graco shares last traded at $84.19, with a volume of 385,607 shares trading hands.

The industrial products company reported $0.65 EPS for the quarter, missing analysts’ consensus estimates of $0.74 by ($0.09). The business had revenue of $492.19 million during the quarter, compared to analyst estimates of $536.19 million. Graco had a return on equity of 24.61% and a net margin of 23.07%. The business’s revenue for the quarter was down 7.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.74 EPS.

Graco Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 1st. Shareholders of record on Monday, April 15th will be paid a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a yield of 1.21%. The ex-dividend date of this dividend is Friday, April 12th. Graco’s payout ratio is 34.69%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Jefferies Financial Group raised their target price on Graco from $90.00 to $100.00 and gave the company a “buy” rating in a research note on Thursday, January 11th. StockNews.com upgraded Graco from a “hold” rating to a “buy” rating in a research note on Wednesday, January 3rd. Finally, Royal Bank of Canada raised their target price on Graco from $91.00 to $93.00 and gave the company an “outperform” rating in a research note on Wednesday, January 31st. Two research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat, Graco has an average rating of “Moderate Buy” and an average price target of $84.80.

Insider Activity at Graco

In related news, insider Anthony J. Gargano sold 1,395 shares of Graco stock in a transaction dated Friday, February 9th. The stock was sold at an average price of $88.00, for a total transaction of $122,760.00. Following the transaction, the insider now directly owns 5,697 shares of the company’s stock, valued at $501,336. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, insider Anthony J. Gargano sold 1,395 shares of Graco stock in a transaction dated Friday, February 9th. The stock was sold at an average price of $88.00, for a total transaction of $122,760.00. Following the transaction, the insider now directly owns 5,697 shares of the company’s stock, valued at $501,336. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Christian E. Rothe sold 15,000 shares of Graco stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $90.04, for a total value of $1,350,600.00. Following the transaction, the insider now directly owns 25,583 shares in the company, valued at $2,303,493.32. The disclosure for this sale can be found here. Insiders have sold a total of 48,378 shares of company stock worth $4,376,528 over the last ninety days. 2.63% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Graco

Institutional investors have recently bought and sold shares of the stock. Tobam increased its stake in Graco by 2,330.8% in the 4th quarter. Tobam now owns 316 shares of the industrial products company’s stock worth $27,000 after purchasing an additional 303 shares in the last quarter. Sound Income Strategies LLC purchased a new position in Graco in the 4th quarter worth about $28,000. Fortitude Family Office LLC purchased a new position in Graco during the 4th quarter valued at about $29,000. Rise Advisors LLC purchased a new position in Graco during the 1st quarter valued at about $38,000. Finally, Northwest Financial Advisors purchased a new position in Graco during the 4th quarter valued at about $50,000. Hedge funds and other institutional investors own 93.88% of the company’s stock.

Graco Stock Performance

The company has a 50 day simple moving average of $91.23 and a two-hundred day simple moving average of $84.82. The company has a market cap of $14.18 billion, a PE ratio of 30.39, a PEG ratio of 2.85 and a beta of 0.81.

Graco Company Profile

Graco Inc designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors.