Graco (NYSE:GGG) Releases Quarterly Earnings Results, Hits Expectations

Graco (NYSE:GGG) released its quarterly earnings results on Monday. The industrial products company reported $0.77 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.77, FiscalAI reports. The firm had revenue of $593.16 million during the quarter, compared to analysts’ expectations of $591.99 million. Graco had a return on equity of 18.89% and a net margin of 22.72%.

Graco Price Performance

GGG stock traded up $0.24 during midday trading on Monday, reaching $86.79. The company had a trading volume of 1,100,269 shares, compared to its average volume of 779,352. Graco has a 1-year low of $72.06 and a 1-year high of $89.67. The company has a market capitalization of $14.39 billion, a price-to-earnings ratio of 29.62, a price-to-earnings-growth ratio of 2.73 and a beta of 1.09. The stock has a 50 day moving average price of $83.51 and a 200-day moving average price of $83.93.

Graco Increases Dividend

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

Analyst Ratings Changes

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

Institutional Trading of Graco

Several institutional investors and hedge funds have recently modified their holdings of GGG. Geneos Wealth Management Inc. raised its holdings in shares of Graco by 982.6% during the first quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company’s stock valued at $42,000 after purchasing an additional 452 shares during the period. EverSource Wealth Advisors LLC increased its position in Graco by 97.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,765 shares of the industrial products company’s stock valued at $152,000 after buying an additional 870 shares in the last quarter. ICW Investment Advisors LLC boosted its holdings in Graco by 5.2% in the second quarter. ICW Investment Advisors LLC now owns 2,723 shares of the industrial products company’s stock worth $234,000 after acquiring an additional 135 shares in the last quarter. Headlands Technologies LLC grew its stake in Graco by 869.6% in the second quarter. Headlands Technologies LLC now owns 3,248 shares of the industrial products company’s stock valued at $279,000 after acquiring an additional 2,913 shares during the period. Finally, Voleon Capital Management LP increased its holdings in shares of Graco by 36.9% during the second quarter. Voleon Capital Management LP now owns 3,445 shares of the industrial products company’s stock valued at $296,000 after acquiring an additional 928 shares in the last quarter. 93.88% of the stock is currently owned by institutional investors.

Graco declared that its Board of Directors has authorized a stock buyback plan on Friday, December 5th that authorizes the company to repurchase 15,000,000 shares. This repurchase authorization authorizes the industrial products company to repurchase shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

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.