Graham (NYSE:GHM) Shares Up 13.8% – Still a Buy?

Graham Corporation (NYSE:GHM)’s share price shot up 13.8% during trading on Monday. The company traded as high as $88.49 and last traded at $88.7950. Approximately 96,134 shares changed hands during mid-day trading, a decline of 50% from the average daily volume of 191,554 shares. The stock had previously closed at $78.02.

Key Graham News

Here are the key news stories impacting Graham this week:

• Positive Sentiment: William Blair initiated coverage with an Outperform rating, adding a bullish analyst view and helping drive a sharp move in the shares. Article: Graham surges 15% as William Blair initiates with outperform rating
• Positive Sentiment: A Zacks article cites above-average financial growth and an analyst price-target average implying about 38.1% potential upside. Price targets are estimates, not guarantees. Article: Wall Street Analysts Predict a 38.09% Upside in Graham
• Neutral Sentiment: Analyst forecasts show some support for longer-term earnings: Northland raised its FY2027 estimate to $1.87 from $1.76 and FY2028 to $2.34 from $2.33; Noble lifted its FY2027 estimate to $1.92. The current-year consensus cited in the reports is $1.92 per share.
• Negative Sentiment: Nearer-term revisions were uneven. Noble cut its Q3 2027 EPS forecast to $0.39 from $0.41 and Q4 2027 to $0.50 from $0.57; Northland also trimmed its Q1 2028 estimate by one cent to $0.53. These reductions temper the positive longer-term revisions.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. Weiss Ratings lowered Graham from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, October 2nd. Oppenheimer decreased their price objective on shares of Graham from $130.00 to $115.00 and set an “outperform” rating for the company in a report on Thursday, October 8th. Wall Street Zen raised Graham from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. JPMorgan Chase & Co. decreased their price objective on Graham from $120.00 to $100.00 and set an “overweight” rating for the company in a report on Friday, November 6th. Finally, William Blair initiated coverage on Graham in a research note on Monday. They set an “outperform” rating on the stock. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Graham has an average rating of “Moderate Buy” and an average price target of $116.67.

Graham Stock Up 2.2%

The stock has a market cap of $1.06 billion, a P/E ratio of 77.27 and a beta of 1.16. The firm’s fifty day moving average price is $80.22 and its 200-day moving average price is $91.23.

Graham (NYSE:GHM) last released its quarterly earnings results on Thursday, November 5th. The industrial products company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.18. Graham had a return on equity of 11.56% and a net margin of 5.05%. The business had revenue of $69.76 million during the quarter, compared to analyst estimates of $71.07 million. Sell-side analysts predict that Graham Corporation will post 1.92 earnings per share for the current year.

Institutional Investors Weigh In On Graham

A number of hedge funds and other institutional investors have recently bought and sold shares of GHM. BlackRock Inc. bought a new stake in shares of Graham in the 2nd quarter worth approximately $110,235,000. William Blair Investment Management LLC bought a new position in shares of Graham during the second quarter valued at $45,159,000. De Lisle Partners LLP bought a new position in shares of Graham during the second quarter valued at $11,141,000. Diamond Hill Capital Management LLC Investment Advisor bought a new position in shares of Graham during the second quarter valued at $9,079,000. Finally, American Capital Management Inc. purchased a new position in shares of Graham in the 2nd quarter worth about $6,443,000. Hedge funds and other institutional investors own 69.46% of the company’s stock.

About Graham

Graham Corporation designs and manufactures engineered equipment used to create and maintain vacuum conditions and transfer heat. Its products include steam jet ejectors, vacuum systems, surface condensers and heat exchangers for industrial applications. The company also provides turbomachinery through its Barber-Nichols business, including pumps, compressors and turbines used in aerospace, defense, energy and other markets. Graham’s equipment serves customers in industries such as chemical processing, refining, power generation and naval defense.