Graco Inc. (GGG) Rating Lowered to Sell at Zacks Investment Research
Graco Inc. (NYSE:GGG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial settings. Based in Minneapolis, Minnesota, Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries. It designs, manu-factures and markets systems and equipment to move, measure, control, dispense and apply fluid materials. The Company helps customers solve difficult manufacturing problems, increase productivity, improve quality, conserve energy, and save expensive materials. “
GGG has been the topic of several other reports. William Blair cut Graco from an “outperform” rating to a “market perform” rating and dropped their target price for the stock from $89.00 to $78.00 in a research report on Thursday, July 21st. Deutsche Bank AG began coverage on Graco in a research report on Tuesday, September 6th. They issued a “hold” rating and a $83.00 target price on the stock. One investment analyst has rated the stock with a sell rating and eight have issued a hold rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $83.75.
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Graco (NYSE:GGG) traded up 0.43% on Wednesday, hitting $70.40. 370,844 shares of the company traded hands. The firm’s 50 day moving average price is $73.84 and its 200 day moving average price is $77.75. The firm has a market capitalization of $3.92 billion, a PE ratio of 20.75 and a beta of 1.51. Graco has a 1-year low of $63.05 and a 1-year high of $86.62.
Graco (NYSE:GGG) last announced its earnings results on Wednesday, July 20th. The company reported $0.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.00 by $0.11. The firm earned $348.10 million during the quarter, compared to analysts’ expectations of $352.49 million. Graco had a return on equity of 30.04% and a net margin of 15.01%. The company’s revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the previous year, the business posted $1.05 earnings per share. Equities research analysts predict that Graco will post $3.37 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 2nd. Shareholders of record on Monday, October 17th will be paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 1.88%. The ex-dividend date is Thursday, October 13th. Graco’s payout ratio is 38.94%.
In other Graco news, insider Patrick J. Mchale sold 11,500 shares of Graco stock in a transaction that occurred on Thursday, September 8th. The stock was sold at an average price of $74.19, for a total value of $853,185.00. Following the sale, the insider now owns 142,230 shares of the company’s stock, valued at approximately $10,552,043.70. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 5.60% of the stock is owned by company insiders.
A number of hedge funds have recently added to or reduced their stakes in GGG. Geode Capital Management LLC increased its stake in Graco by 1.9% in the first quarter. Geode Capital Management LLC now owns 329,723 shares of the company’s stock worth $27,683,000 after buying an additional 6,252 shares during the last quarter. British Airways Pensions Investment Management Ltd increased its position in Graco by 99.8% in the second quarter. British Airways Pensions Investment Management Ltd now owns 183,670 shares of the company’s stock valued at $14,566,000 after buying an additional 91,760 shares in the last quarter. UBS Group AG increased its position in Graco by 19.3% in the first quarter. UBS Group AG now owns 53,374 shares of the company’s stock valued at $4,481,000 after buying an additional 8,618 shares in the last quarter. BNP Paribas Arbitrage SA increased its position in Graco by 3,552.8% in the second quarter. BNP Paribas Arbitrage SA now owns 21,990 shares of the company’s stock valued at $1,737,000 after buying an additional 21,388 shares in the last quarter. Finally, Wesbanco Bank Inc. increased its position in Graco by 41.2% in the second quarter. Wesbanco Bank Inc. now owns 3,910 shares of the company’s stock valued at $309,000 after buying an additional 1,140 shares in the last quarter. 90.60% of the stock is currently owned by institutional investors and hedge funds.
Graco Inc (Graco) is a manufacturing company. The Company designs, manufactures and markets equipment to pump, meter, mix and dispense fluid and powder materials. The Company operates through three segments: Industrial, Process and Contractor. The Industrial segment markets equipment and pre-engineered packages for moving and applying paints, coatings, sealants, adhesives and other fluids.
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