Graco (NYSE:GGG) Shares Gap Down Following Weak Earnings

Graco Inc. (NYSE:GGG) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $85.95, but opened at $81.77. Graco shares last traded at $82.81, with a volume of 104,512 shares changing hands.

The industrial products company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $0.77 by ($0.13). Graco had a net margin of 22.87% and a return on equity of 21.24%.

Graco Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 5th. Stockholders of record on Monday, January 20th will be issued a $0.275 dividend. This is a boost from Graco’s previous quarterly dividend of $0.26. This represents a $1.10 dividend on an annualized basis and a dividend yield of 1.32%. The ex-dividend date is Friday, January 17th. Graco’s dividend payout ratio is presently 38.87%.

Analysts Set New Price Targets

A number of research firms recently weighed in on GGG. BNP Paribas upgraded Graco from a “neutral” rating to an “outperform” rating and set a $105.00 target price for the company in a research report on Thursday, December 19th. Royal Bank of Canada boosted their price objective on shares of Graco from $93.00 to $97.00 and gave the stock an “outperform” rating in a report on Friday, January 3rd. Finally, Robert W. Baird reduced their target price on shares of Graco from $88.00 to $85.00 and set a “neutral” rating on the stock in a report on Friday, October 25th. Four research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $91.50.

Insider Buying and Selling at Graco

In other news, insider Peter J. O’shea sold 18,075 shares of the business’s stock in a transaction that occurred on Thursday, November 14th. The stock was sold at an average price of $88.76, for a total transaction of $1,604,337.00. Following the transaction, the insider now directly owns 14,516 shares of the company’s stock, valued at approximately $1,288,440.16. The trade was a 55.46 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Kathryn L. Schoenrock sold 1,527 shares of the firm’s stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $90.30, for a total value of $137,888.10. Following the completion of the sale, the executive vice president now directly owns 6,374 shares of the company’s stock, valued at $575,572.20. The trade was a 19.33 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 31,098 shares of company stock worth $2,776,150. 2.63% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Graco

Institutional investors have recently bought and sold shares of the stock. Golden State Wealth Management LLC purchased a new position in shares of Graco in the 4th quarter valued at approximately $25,000. Brooklyn Investment Group bought a new position in Graco in the third quarter worth $30,000. UMB Bank n.a. lifted its position in Graco by 187.8% during the third quarter. UMB Bank n.a. now owns 495 shares of the industrial products company’s stock valued at $43,000 after buying an additional 323 shares during the period. Eastern Bank bought a new stake in shares of Graco during the 3rd quarter valued at $59,000. Finally, MilWealth Group LLC purchased a new stake in shares of Graco in the 4th quarter worth about $63,000. 93.88% of the stock is owned by institutional investors.

Graco Trading Down 3.2 %

The company has a market capitalization of $14.05 billion, a P/E ratio of 29.41, a price-to-earnings-growth ratio of 2.81 and a beta of 0.84. The company’s 50 day moving average is $86.37 and its 200-day moving average is $84.66.

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.