Graco (NYSE:GGG) Sets New 12-Month High – Still a Buy?

Graco Inc. (NYSE:GGG)’s share price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $90.66 and last traded at $86.89, with a volume of 813 shares. The stock had previously closed at $87.65.

Analyst Ratings Changes

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

Graco Stock Down 0.4%

The stock’s 50-day moving average price is $83.83 and its 200 day moving average price is $83.92. The company has a market cap of $14.47 billion, a P/E ratio of 28.23, a price-to-earnings-growth ratio of 2.74 and a beta of 1.09.

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

Graco Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 4th. Stockholders of record on Monday, January 19th will be paid a $0.295 dividend. The ex-dividend date is Friday, January 16th. This is a positive change from Graco’s previous quarterly dividend of $0.28. This represents a $1.18 annualized dividend and a dividend yield of 1.4%. Graco’s dividend payout ratio is 40.27%.

Graco announced that its Board of Directors has initiated a stock repurchase program on Friday, December 5th that authorizes the company to repurchase 15,000,000 outstanding shares. This repurchase authorization authorizes the industrial products company to buy shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Graco

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

Graco Company Profile

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.