Griffon (NYSE:GFF) Shares Gap Up Following Better-Than-Expected Earnings

Griffon Co. (NYSE:GFF - Get Free Report)'s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $74.31, but opened at $81.55. Griffon shares last traded at $83.33, with a volume of 25,812 shares traded.

The conglomerate reported $1.39 EPS for the quarter, beating analysts' consensus estimates of $1.28 by $0.11. Griffon had a return on equity of 120.61% and a net margin of 9.13%.

Griffon Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 18th. Stockholders of record on Tuesday, February 25th will be given a dividend of $0.18 per share. The ex-dividend date is Tuesday, February 25th. This represents a $0.72 annualized dividend and a dividend yield of 0.91%. Griffon's dividend payout ratio (DPR) is presently 14.69%.

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

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on GFF shares. Robert W. Baird lifted their price objective on Griffon from $92.00 to $100.00 and gave the stock an "outperform" rating in a report on Wednesday, November 20th. Raymond James reiterated a "strong-buy" rating and issued a $95.00 price objective (up previously from $92.00) on shares of Griffon in a research report on Thursday. Stephens increased their price objective on Griffon from $100.00 to $105.00 and gave the company an "overweight" rating in a research note on Thursday. Finally, StockNews.com downgraded shares of Griffon from a "strong-buy" rating to a "buy" rating in a research note on Thursday.

Insider Activity

In other news, Director Victor Eugene Renuart sold 4,500 shares of Griffon stock in a transaction dated Tuesday, November 26th. The shares were sold at an average price of $84.46, for a total transaction of $380,070.00. Following the sale, the director now owns 19,312 shares of the company's stock, valued at approximately $1,631,091.52. The trade was a 18.90 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Cheryl L. Turnbull sold 3,000 shares of the firm's stock in a transaction that occurred on Thursday, February 6th. The shares were sold at an average price of $80.80, for a total value of $242,400.00. Following the completion of the transaction, the director now owns 30,730 shares of the company's stock, valued at approximately $2,482,984. The trade was a 8.89 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 368,170 shares of company stock valued at $27,421,146. Company insiders own 10.20% of the company's stock.

Institutional Trading of Griffon

Institutional investors and hedge funds have recently modified their holdings of the business. Grove Bank & Trust purchased a new position in shares of Griffon in the 4th quarter worth $33,000. R Squared Ltd bought a new stake in Griffon in the 4th quarter valued at $37,000. Smartleaf Asset Management LLC boosted its stake in Griffon by 343.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,091 shares of the conglomerate's stock valued at $78,000 after buying an additional 845 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Griffon by 56.9% during the 3rd quarter. GAMMA Investing LLC now owns 1,133 shares of the conglomerate's stock worth $79,000 after acquiring an additional 411 shares in the last quarter. Finally, CWM LLC boosted its position in shares of Griffon by 1,024.8% during the 3rd quarter. CWM LLC now owns 1,136 shares of the conglomerate's stock valued at $80,000 after acquiring an additional 1,035 shares during the last quarter. Institutional investors own 73.22% of the company's stock.

Griffon Price Performance

The firm's 50-day moving average is $75.93 and its two-hundred day moving average is $70.98. The company has a debt-to-equity ratio of 6.44, a current ratio of 2.51 and a quick ratio of 1.44. The company has a market cap of $3.75 billion, a P/E ratio of 16.12 and a beta of 1.43.

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.