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Highlights
- Graco's Q1 2025 earnings per share estimate has been slightly reduced by Zacks Research from $0.67 to $0.66.
- Recent earnings results fell short of expectations, with a reported EPS of $0.64 against a consensus of $0.77.
- Graco announced a consistent dividend payout, maintaining investor interest with a yield of 1.26%.
Graco Inc. (NYSE:GGG) recently caught the attention of financial analysts due to a slight revision in the earnings per share (EPS) estimate for Q1 2025. Zacks Research adjusted its forecast, reducing the expected EPS from $0.67 to $0.66. Despite this adjustment, the consensus estimate for Graco's full-year earnings remains stable at $3.07 per share. Additional future estimates include Q2 2025 earnings at $0.79 EPS and FY2027 earnings anticipated to reach $3.57 EPS.
The final quarter of 2024 revealed a significant deviation from previous expectations, with Graco reporting an EPS of $0.64, falling short of the consensus estimate of $0.77. In light of these results, Graco boasts a return on equity of 19.38% and a net margin of 23%, underscoring its robust financial standing despite the earnings shortfall. The company's valuation metrics include a PE ratio of 30.91 and a P/E/G ratio of 2.80, reflecting a strong position in the industrial products sector.
Market Performance and Dividends
Current trading data shows Graco opened at $87.18, compared to its 52-week range of $77.49 to $94.77. The stock's market capitalization stands at $14.72 billion, with moving averages indicating stability over the past year.
Investors were pleased with the announcement of a quarterly dividend, which remains consistent at $0.275 per share, scheduled for payment on May 7th. The annualized dividend maintains a yield of 1.26%, with a payout ratio of 39.01%, showcasing Graco's commitment to rewarding its shareholders.
Insider Transactions and Institutional Investments
In recent months, Graco witnessed insider activities with EVP Kathryn L. Schoenrock and insider Caroline M. Chambers selling shares. These transactions accounted for significant amounts valued at $137,888.10 and $749,919.60, respectively. Such insider movements are closely monitored by investors and analysts, as they provide insights into the confidence of the company's leadership.
On the institutional front, hedge funds and management firms like Golden State Wealth Management LLC, Brooklyn Investment Group, and Whipplewood Advisors LLC have either established new stakes or increased their holdings in Graco. These movements exhibit continued interest and confidence in Graco's long-term potential as 93.88% of the company's stock is owned by institutional investors.
About Graco
Graco Inc. specializes in the design, manufacture, and marketing of systems that handle fluid and powder materials worldwide. Its Contractor segment focuses on providing sprayers for various applications including paint, polyurethane foam, and polyurea coatings. Graco’s products cater to a wide variety of needs, from road and parking lot markings to larger scale construction and maintenance projects.
