Griffon (NYSE:GFF) Shares Gap Up Following Earnings Beat

Griffon Co. (NYSE:GFF)’s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $74.31, but opened at $81.55. Griffon shares last traded at $83.33, with a volume of 25,812 shares trading hands.

The conglomerate reported $1.39 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.11. Griffon had a net margin of 8.00% and a return on equity of 108.70%.

Griffon Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 18th. Stockholders of record on Tuesday, February 25th will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 0.89%. Griffon’s dividend payout ratio is currently 17.02%.

Griffon declared that its board has authorized a stock buyback plan on Wednesday, November 13th that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the conglomerate to buy up to 10.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

GFF has been the topic of several recent analyst reports. StockNews.com upgraded shares of Griffon from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 23rd. Stephens upped their price objective on shares of Griffon from $85.00 to $100.00 and gave the stock an “overweight” rating in a research report on Thursday, November 14th. Finally, Robert W. Baird increased their target price on shares of Griffon from $92.00 to $100.00 and gave the stock an “outperform” rating in a report on Wednesday, November 20th.

Insider Transactions at Griffon

In related news, CAO W. Christopher Durborow sold 5,170 shares of the firm’s stock in a transaction that occurred on Friday, December 6th. The shares were sold at an average price of $80.38, for a total value of $415,564.60. Following the completion of the transaction, the chief accounting officer now directly owns 44,306 shares of the company’s stock, valued at approximately $3,561,316.28. This trade represents a 10.45 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Ronald J. Kramer sold 67,164 shares of the stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $70.08, for a total transaction of $4,706,853.12. Following the completion of the sale, the chief executive officer now directly owns 2,102,503 shares in the company, valued at approximately $147,343,410.24. The trade was a 3.10 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 365,170 shares of company stock valued at $27,178,746 over the last three months. Corporate insiders own 10.20% of the company’s stock.

Institutional Investors Weigh In On Griffon

A number of institutional investors have recently made changes to their positions in GFF. Grove Bank & Trust purchased a new position in Griffon during the 4th quarter valued at $33,000. R Squared Ltd purchased a new position in shares of Griffon in the 4th quarter worth about $37,000. Smartleaf Asset Management LLC grew its holdings in shares of Griffon by 343.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,091 shares of the conglomerate’s stock valued at $78,000 after buying an additional 845 shares during the last quarter. GAMMA Investing LLC raised its position in Griffon by 56.9% in the 3rd quarter. GAMMA Investing LLC now owns 1,133 shares of the conglomerate’s stock worth $79,000 after buying an additional 411 shares during the last quarter. Finally, CWM LLC lifted its position in Griffon by 1,024.8% during the third quarter. CWM LLC now owns 1,136 shares of the conglomerate’s stock valued at $80,000 after purchasing an additional 1,035 shares during the period. Hedge funds and other institutional investors own 73.22% of the company’s stock.

Griffon Stock Up 8.7 %

The company has a market cap of $3.88 billion, a P/E ratio of 19.10 and a beta of 1.43. The company has a quick ratio of 1.44, a current ratio of 2.66 and a debt-to-equity ratio of 6.74. The company has a fifty day moving average of $76.08 and a 200 day moving average of $70.88.

Griffon Company Profile

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications.