Graco (NYSE:GGG) Shares Gap Down on Disappointing Earnings

Shares of Graco Inc. (NYSE:GGG) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $89.35, but opened at $82.95. Graco shares last traded at $84.19, with a volume of 385,607 shares changing hands.

The industrial products company reported $0.65 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.74 by ($0.09). Graco had a net margin of 23.15% and a return on equity of 23.43%. The company had revenue of $492.19 million for the quarter, compared to analyst estimates of $536.19 million. During the same quarter last year, the company earned $0.74 EPS. The business’s revenue was down 7.1% compared to the same quarter last year.

Graco Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Stockholders of record on Monday, April 15th will be issued a dividend of $0.255 per share. The ex-dividend date of this dividend is Friday, April 12th. This represents a $1.02 annualized dividend and a dividend yield of 1.24%. Graco’s dividend payout ratio (DPR) is currently 35.17%.

Analyst Ratings Changes

Several equities analysts recently weighed in on GGG shares. Robert W. Baird cut their price target on shares of Graco from $90.00 to $87.00 and set a “neutral” rating on the stock in a report on Friday. Jefferies Financial Group increased their price target on shares of Graco from $90.00 to $100.00 and gave the stock a “buy” rating in a report on Thursday, January 11th. StockNews.com downgraded shares of Graco from a “buy” rating to a “hold” rating in a report on Friday. William Blair reiterated a “market perform” rating on shares of Graco in a report on Friday. Finally, Royal Bank of Canada increased their price target on shares of Graco from $91.00 to $93.00 and gave the stock an “outperform” rating in a report on Wednesday, January 31st. Four investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $85.60.

Insider Transactions at Graco

In other news, insider Anthony J. Gargano sold 1,395 shares of the firm’s stock in a transaction that occurred on Friday, February 9th. The shares were sold at an average price of $88.00, for a total transaction of $122,760.00. Following the sale, the insider now owns 5,697 shares of the company’s stock, valued at approximately $501,336. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, VP Angela F. Wordell sold 3,588 shares of the firm’s stock in a transaction that occurred on Wednesday, March 13th. The shares were sold at an average price of $93.60, for a total transaction of $335,836.80. Following the sale, the vice president now owns 12,725 shares of the company’s stock, valued at approximately $1,191,060. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Anthony J. Gargano sold 1,395 shares of the firm’s stock in a transaction that occurred on Friday, February 9th. The stock was sold at an average price of $88.00, for a total transaction of $122,760.00. Following the sale, the insider now directly owns 5,697 shares in the company, valued at approximately $501,336. The disclosure for this sale can be found here. Insiders have sold 48,378 shares of company stock valued at $4,376,528 in the last 90 days. 2.63% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Park Avenue Securities LLC lifted its position in shares of Graco by 1.9% during the 1st quarter. Park Avenue Securities LLC now owns 7,490 shares of the industrial products company’s stock valued at $700,000 after buying an additional 139 shares in the last quarter. Meeder Advisory Services Inc. lifted its position in shares of Graco by 5.5% during the 3rd quarter. Meeder Advisory Services Inc. now owns 3,004 shares of the industrial products company’s stock valued at $219,000 after buying an additional 157 shares in the last quarter. Taylor Frigon Capital Management LLC lifted its position in shares of Graco by 0.9% during the 3rd quarter. Taylor Frigon Capital Management LLC now owns 18,734 shares of the industrial products company’s stock valued at $1,365,000 after buying an additional 163 shares in the last quarter. Spire Wealth Management lifted its position in shares of Graco by 0.3% during the 1st quarter. Spire Wealth Management now owns 66,975 shares of the industrial products company’s stock valued at $6,260,000 after buying an additional 176 shares in the last quarter. Finally, Lindbrook Capital LLC lifted its position in shares of Graco by 24.3% during the 4th quarter. Lindbrook Capital LLC now owns 931 shares of the industrial products company’s stock valued at $81,000 after buying an additional 182 shares in the last quarter. Hedge funds and other institutional investors own 93.88% of the company’s stock.

Graco Trading Down 0.7 %

The stock has a market cap of $13.91 billion, a PE ratio of 28.47, a price-to-earnings-growth ratio of 2.85 and a beta of 0.81. The business has a 50-day moving average price of $91.14 and a 200-day moving average price of $84.84.

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.