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Graco (NYSE:GGG) Shares Gap Down Following Weak Earnings

Graco logo with Industrial Products background

Graco Inc. (NYSE:GGG - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $85.95, but opened at $81.77. Graco shares last traded at $82.81, with a volume of 104,512 shares.

The industrial products company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.77 by ($0.13). Graco had a net margin of 23.00% and a return on equity of 19.38%.

Graco Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, February 5th. Investors of record on Monday, January 20th will be paid a dividend of $0.275 per share. This is a boost from Graco's previous quarterly dividend of $0.26. This represents a $1.10 annualized dividend and a yield of 1.31%. The ex-dividend date of this dividend is Friday, January 17th. Graco's dividend payout ratio is presently 39.01%.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. BNP Paribas upgraded shares of Graco from a "neutral" rating to an "outperform" rating and set a $105.00 price objective on the stock in a report on Thursday, December 19th. Robert W. Baird lowered their price target on Graco from $88.00 to $85.00 and set a "neutral" rating on the stock in a research note on Friday, October 25th. Finally, Royal Bank of Canada raised their price objective on Graco from $93.00 to $97.00 and gave the stock an "outperform" rating in a research report on Friday, January 3rd. Four equities research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $91.50.

Read Our Latest Stock Report on GGG

Insider Activity

In related news, EVP Kathryn L. Schoenrock sold 1,527 shares of the company's stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $90.30, for a total transaction of $137,888.10. Following the transaction, the executive vice president now owns 6,374 shares in the company, valued at $575,572.20. This represents a 19.33 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider David J. Thompson sold 3,216 shares of the business's stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $88.31, for a total transaction of $284,004.96. Following the completion of the transaction, the insider now owns 27,246 shares of the company's stock, valued at $2,406,094.26. This trade represents a 10.56 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 31,098 shares of company stock worth $2,776,150. Corporate insiders own 2.63% of the company's stock.

Hedge Funds Weigh In On Graco

Several hedge funds have recently added to or reduced their stakes in GGG. Kestra Investment Management LLC lifted its position in Graco by 55.0% during the 4th quarter. Kestra Investment Management LLC now owns 3,921 shares of the industrial products company's stock valued at $331,000 after purchasing an additional 1,391 shares during the period. CIBC Asset Management Inc raised its stake in shares of Graco by 5.5% during the fourth quarter. CIBC Asset Management Inc now owns 5,209 shares of the industrial products company's stock worth $439,000 after buying an additional 271 shares during the last quarter. Catalyst Capital Advisors LLC acquired a new position in Graco in the fourth quarter valued at approximately $61,000. Principal Financial Group Inc. boosted its stake in Graco by 17.0% in the fourth quarter. Principal Financial Group Inc. now owns 2,328,179 shares of the industrial products company's stock valued at $196,242,000 after acquiring an additional 337,437 shares during the last quarter. Finally, Financiere des Professionnels Fonds d investissement inc. acquired a new stake in Graco during the 4th quarter worth $3,813,000. Institutional investors own 93.88% of the company's stock.

Graco Stock Performance

The firm's 50-day simple moving average is $86.14 and its 200 day simple moving average is $84.64. The company has a market cap of $14.19 billion, a P/E ratio of 29.80, a PEG ratio of 2.70 and a beta of 0.84.

Graco Company Profile

(Get Free Report)

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.

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