Graco (NYSE:GGG) Reaches New 1-Year High – Here’s What Happened

Graco Inc. (NYSE:GGG) shares reached a new 52-week high on Wednesday . The stock traded as high as $90.66 and last traded at $86.89, with a volume of 813 shares traded. The stock had previously closed at $87.65.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Graco in a report on Thursday, January 15th. Weiss Ratings restated a “hold (c+)” rating on shares of Graco in a research note on Thursday, January 22nd. KeyCorp reiterated a “sector weight” rating on shares of Graco in a research note on Tuesday. Finally, Robert W. Baird set a $96.00 price target on shares of Graco in a research report on Wednesday. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Graco currently has an average rating of “Hold” and an average price target of $90.50.

Graco Trading Down 0.4%

The company has a market capitalization of $14.47 billion, a price-to-earnings ratio of 28.23, a PEG ratio of 2.74 and a beta of 1.09. The firm has a 50-day moving average price of $83.83 and a 200-day moving average price of $83.92.

Graco (NYSE:GGG) last released its earnings results on Monday, January 26th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.77. Graco had a return on equity of 19.73% and a net margin of 23.33%.The firm had revenue of $593.16 million for the quarter, compared to analyst estimates of $591.99 million. During the same period in the previous year, the company earned $0.64 earnings per share. Graco’s revenue was up 8.1% compared to the same quarter last year. Equities research analysts predict that Graco Inc. will post 3.06 EPS for the current fiscal year.

Graco Increases Dividend

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

Graco announced that its board has approved a stock repurchase plan on Friday, December 5th that allows the company to buyback 15,000,000 shares. This buyback authorization allows the industrial products company to purchase shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Graco

A number of hedge funds have recently modified their holdings of the stock. Stonebridge Capital Advisors LLC raised its holdings in shares of Graco by 0.3% during the second quarter. Stonebridge Capital Advisors LLC now owns 41,431 shares of the industrial products company’s stock valued at $3,562,000 after acquiring an additional 119 shares during the period. Fifth Third Bancorp raised its stake in Graco by 7.7% during the 3rd quarter. Fifth Third Bancorp now owns 1,755 shares of the industrial products company’s stock valued at $149,000 after purchasing an additional 125 shares during the period. ICW Investment Advisors LLC lifted its holdings in shares of Graco by 4.6% in the third quarter. ICW Investment Advisors LLC now owns 2,849 shares of the industrial products company’s stock valued at $242,000 after purchasing an additional 126 shares in the last quarter. Jones Financial Companies Lllp boosted its position in shares of Graco by 7.8% in the third quarter. Jones Financial Companies Lllp now owns 1,874 shares of the industrial products company’s stock worth $159,000 after buying an additional 135 shares during the period. Finally, Viawealth LLC grew its holdings in shares of Graco by 0.3% during the third quarter. Viawealth LLC now owns 53,195 shares of the industrial products company’s stock valued at $4,519,000 after buying an additional 137 shares in the last quarter. 93.88% of the stock is currently owned by institutional investors and hedge funds.

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.