Zacks Investment Research cut shares of Graco (NYSE:GGG) from a hold rating to a sell rating in a report published on Tuesday morning.

According to Zacks, “Over the past three months, Graco’s shares have underperformed and look overvalued compared with the industry. The company reported weaker-than-expected second-quarter 2018 earnings. Over the past 60 days, stock’s Zacks Consensus Estimate for earnings has been revised downwards for both 2018 and 2019. Rising costs, if unchecked, will continue to weigh over the Graco’s near-term bottom line performances. Moreover, integration actions and expenses involved with newly made business acquisitions might weigh over margins in the upcoming quarters. Also, headwinds like stiff industry rivalry and unfavorable foreign currency translation impact remains causes of concern for the stock. “

Several other analysts have also recently weighed in on GGG. Oppenheimer reaffirmed a hold rating on shares of Graco in a report on Thursday, July 26th. Royal Bank of Canada reaffirmed a hold rating and issued a $49.00 target price on shares of Graco in a report on Friday, July 27th. Finally, DA Davidson set a $49.00 target price on shares of Graco and gave the company a hold rating in a report on Monday, August 20th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and one has given a buy rating to the company. Graco presently has an average rating of Hold and an average target price of $49.17.

Shares of GGG opened at $46.57 on Tuesday. The stock has a market cap of $7.85 billion, a PE ratio of 32.57, a price-to-earnings-growth ratio of 2.94 and a beta of 1.10. Graco has a 1 year low of $40.19 and a 1 year high of $49.69. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.64 and a current ratio of 2.65.

Graco (NYSE:GGG) last issued its earnings results on Wednesday, July 25th. The industrial products company reported $0.48 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.50 by ($0.02). The firm had revenue of $424.60 million during the quarter, compared to analyst estimates of $421.19 million. Graco had a net margin of 18.07% and a return on equity of 40.67%. The firm’s revenue was up 11.9% compared to the same quarter last year. During the same period last year, the business earned $1.38 EPS. analysts predict that Graco will post 1.84 EPS for the current year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 7th. Shareholders of record on Monday, October 22nd will be paid a $0.1325 dividend. The ex-dividend date is Friday, October 19th. This represents a $0.53 annualized dividend and a yield of 1.14%. Graco’s dividend payout ratio is currently 37.06%.

In other Graco news, Director Jack W. Eugster sold 32,297 shares of the stock in a transaction that occurred on Tuesday, August 28th. The shares were sold at an average price of $46.66, for a total value of $1,506,978.02. Following the transaction, the director now directly owns 103,251 shares in the company, valued at $4,817,691.66. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Caroline M. Chambers sold 97,500 shares of the stock in a transaction that occurred on Wednesday, August 29th. The shares were sold at an average price of $47.10, for a total transaction of $4,592,250.00. Following the completion of the transaction, the insider now owns 119,092 shares in the company, valued at $5,609,233.20. The disclosure for this sale can be found here. Corporate insiders own 5.10% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the business. BlackRock Inc. increased its stake in Graco by 2.0% in the second quarter. BlackRock Inc. now owns 14,712,692 shares of the industrial products company’s stock valued at $665,308,000 after purchasing an additional 289,609 shares during the last quarter. Fiera Capital Corp increased its stake in Graco by 4.7% in the second quarter. Fiera Capital Corp now owns 9,937,963 shares of the industrial products company’s stock valued at $449,394,000 after purchasing an additional 447,854 shares during the last quarter. Russell Investments Group Ltd. increased its stake in Graco by 12.2% in the first quarter. Russell Investments Group Ltd. now owns 2,088,179 shares of the industrial products company’s stock valued at $95,035,000 after purchasing an additional 227,135 shares during the last quarter. Northern Trust Corp increased its stake in Graco by 0.8% in the second quarter. Northern Trust Corp now owns 1,308,877 shares of the industrial products company’s stock valued at $59,189,000 after purchasing an additional 10,047 shares during the last quarter. Finally, Old Mutual Global Investors UK Ltd. increased its stake in Graco by 10.7% in the first quarter. Old Mutual Global Investors UK Ltd. now owns 1,229,544 shares of the industrial products company’s stock valued at $56,214,000 after purchasing an additional 118,518 shares during the last quarter. Institutional investors own 85.68% of the company’s stock.

About Graco

Graco Inc designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. Its Industrial segment offers proportioning systems that are used to spray polyurethane foam and polyurea coatings; vapor-abrasive blasting equipment; equipment that pumps, meters, mixes, and dispenses sealant, adhesive, and composite materials; and gel coat equipment, chop and wet-out systems, resin transfer molding systems, and applicators.

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