Griffon (NYSE:GFF) Reaches New 1-Year High Following Dividend Announcement

Griffon Co. (NYSE:GFF - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday following a dividend announcement from the company. The company traded as high as $82.50 and last traded at $82.50, with a volume of 374 shares. The stock had previously closed at $80.52.

The newly announced dividend which will be paid on Wednesday, December 18th. Stockholders of record on Monday, November 25th will be issued a $0.18 dividend. This is an increase from Griffon's previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Monday, November 25th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.93%. Griffon's dividend payout ratio is currently 16.09%.

Analyst Ratings Changes

Several research firms recently commented on GFF. Stephens raised their price target on shares of Griffon from $85.00 to $100.00 and gave the stock an "overweight" rating in a report on Thursday. Robert W. Baird lifted their target price on shares of Griffon from $84.00 to $92.00 and gave the company an "outperform" rating in a research note on Monday, October 21st. Finally, StockNews.com raised shares of Griffon from a "buy" rating to a "strong-buy" rating in a research note on Thursday, November 7th. Three investment analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, Griffon presently has an average rating of "Buy" and a consensus target price of $87.25.

Griffon Price Performance

The company has a debt-to-equity ratio of 6.71, a current ratio of 2.50 and a quick ratio of 1.39. The stock has a market capitalization of $3.81 billion, a price-to-earnings ratio of 21.58 and a beta of 1.31. The stock's 50 day simple moving average is $67.01 and its 200-day simple moving average is $66.70.

Griffon announced that its board has initiated a stock repurchase plan on Wednesday, November 13th that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the conglomerate to reacquire up to 10.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In related news, CEO Ronald J. Kramer sold 241,757 shares of the business's stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $75.35, for a total transaction of $18,216,389.95. Following the completion of the transaction, the chief executive officer now owns 1,860,746 shares of the company's stock, valued at approximately $140,207,211.10. The trade was a 11.50 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Robert F. Mehmel sold 912 shares of Griffon stock in a transaction that occurred on Wednesday, October 16th. The stock was sold at an average price of $70.06, for a total value of $63,894.72. Following the completion of the transaction, the chief operating officer now directly owns 746,611 shares in the company, valued at approximately $52,307,566.66. This represents a 0.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 578,082 shares of company stock worth $40,777,353. Corporate insiders own 16.10% of the company's stock.

Hedge Funds Weigh In On Griffon

Institutional investors and hedge funds have recently bought and sold shares of the stock. SG Americas Securities LLC increased its holdings in shares of Griffon by 14.2% during the 1st quarter. SG Americas Securities LLC now owns 4,014 shares of the conglomerate's stock worth $294,000 after purchasing an additional 498 shares during the period. Sei Investments Co. increased its stake in Griffon by 62.0% during the first quarter. Sei Investments Co. now owns 47,724 shares of the conglomerate's stock valued at $3,500,000 after acquiring an additional 18,256 shares during the period. Russell Investments Group Ltd. increased its stake in Griffon by 353.3% during the first quarter. Russell Investments Group Ltd. now owns 15,123 shares of the conglomerate's stock valued at $1,109,000 after acquiring an additional 11,787 shares during the period. State Board of Administration of Florida Retirement System raised its holdings in Griffon by 46.9% in the 1st quarter. State Board of Administration of Florida Retirement System now owns 18,414 shares of the conglomerate's stock valued at $1,350,000 after acquiring an additional 5,880 shares in the last quarter. Finally, Kingsview Wealth Management LLC bought a new stake in shares of Griffon in the 1st quarter worth approximately $640,000. Institutional investors own 73.22% of the company's stock.

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications.