Teacher Retirement System of Texas Has $6.42 Million Position in Graco Inc. $GGG

Teacher Retirement System of Texas increased its position in shares of Graco Inc. (NYSE:GGG) by 53.8% during the third quarter, Holdings Channel reports. The institutional investor owned 75,508 shares of the industrial products company’s stock after purchasing an additional 26,403 shares during the quarter. Teacher Retirement System of Texas’ holdings in Graco were worth $6,415,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Root Financial Partners LLC bought a new stake in shares of Graco in the 3rd quarter worth approximately $29,000. NewSquare Capital LLC increased its position in shares of Graco by 320.7% during the second quarter. NewSquare Capital LLC now owns 345 shares of the industrial products company’s stock valued at $30,000 after purchasing an additional 263 shares during the period. CX Institutional raised its stake in shares of Graco by 316.7% in the third quarter. CX Institutional now owns 475 shares of the industrial products company’s stock valued at $40,000 after purchasing an additional 361 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in Graco by 982.6% in the first quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company’s stock worth $42,000 after purchasing an additional 452 shares during the period. Finally, TD Private Client Wealth LLC boosted its stake in Graco by 116.9% during the third quarter. TD Private Client Wealth LLC now owns 514 shares of the industrial products company’s stock worth $44,000 after buying an additional 277 shares in the last quarter. 93.88% of the stock is currently owned by institutional investors.

Graco Stock Up 0.3%

NYSE:GGG opened at $86.79 on Tuesday. The firm has a market cap of $14.39 billion, a PE ratio of 29.62, a price-to-earnings-growth ratio of 2.73 and a beta of 1.09. Graco Inc. has a 12 month low of $72.06 and a 12 month high of $89.67. The company’s 50-day moving average price is $83.66 and its two-hundred day moving average price is $83.92.

Graco (NYSE:GGG) last posted its earnings results on Monday, January 26th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.77. The company had revenue of $593.16 million during the quarter, compared to analysts’ expectations of $591.99 million. Graco had a net margin of 22.72% and a return on equity of 18.89%. Graco’s quarterly revenue was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.64 earnings per share. On average, research analysts expect that Graco Inc. will post 3.06 EPS for the current fiscal year.

Graco Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, February 4th. Stockholders of record on Monday, January 19th will be paid a dividend of $0.295 per share. This represents a $1.18 annualized dividend and a dividend yield of 1.4%. This is a boost from Graco’s previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Friday, January 16th. Graco’s payout ratio is currently 40.27%.

Graco announced that its Board of Directors has approved a stock repurchase program on Friday, December 5th that allows the company to buyback 15,000,000 shares. This buyback authorization allows the industrial products company to buy shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. KeyCorp restated a “sector weight” rating on shares of Graco in a research note on Thursday, October 23rd. Weiss Ratings reissued a “hold (c+)” rating on shares of Graco in a research report on Thursday. Robert W. Baird set a $89.00 price objective on Graco in a report on Friday, October 24th. Finally, Royal Bank Of Canada reiterated an “outperform” rating on shares of Graco in a research note on Thursday, January 15th. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $87.00.

Key Stories Impacting Graco

Here are the key news stories impacting Graco this week:

• Positive Sentiment: Record quarterly and full?year sales with strong margin expansion — operating earnings and net income increased ~22% and the company called out record sales for the quarter and year, supporting a constructive fundamental picture. Business Wire — Graco Finishes Year with Record Quarterly and Annual Sales
• Positive Sentiment: Year?over?year revenue and EPS growth — revenue roughly $593M (+8.1% YoY) and EPS improved from $0.64 to $0.77, showing top?line momentum and operating leverage that can support valuation. Press Release / Slide Deck
• Neutral Sentiment: Earnings broadly in line with expectations — most outlets report Q4 EPS of $0.77, matching consensus, which is neutral for the stock since beats tend to move shares more than prints that meet estimates. Zacks — Q4 Earnings vs Estimates
• Neutral Sentiment: No material forward guidance change disclosed in headlines — absence or conservatism in guidance could keep the move muted until conference?call color on orders and end markets. Business Wire — Release
• Negative Sentiment: Slight revenue miss in some datafeeds — one report notes revenue narrowly missed a third?party estimate (?$593.2M vs ~$595.7M), which can temper upside in a market that rewards beats. QuiverQuant — Q4 Results & Slight Revenue Miss
• Negative Sentiment: Recent insider selling called out in filings — a small number of insider sales were reported, which some investors view as a mild negative signal. QuiverQuant — Insider Activity

About Graco

Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco’s solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.

The company’s product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.