Graco (NYSE:GGG) Reaches New 52-Week High – Time to Buy?

Graco Inc. (NYSE:GGG) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $94.38 and last traded at $94.29, with a volume of 225240 shares changing hands. The stock had previously closed at $92.75.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on GGG shares. Royal Bank Of Canada raised their price target on shares of Graco from $97.00 to $100.00 and gave the company an “outperform” rating in a research report on Wednesday, January 28th. Weiss Ratings upgraded Graco from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday. KeyCorp reissued a “sector weight” rating on shares of Graco in a research report on Tuesday, January 27th. Robert W. Baird set a $96.00 price objective on shares of Graco in a report on Wednesday, January 28th. Finally, DA Davidson reiterated a “neutral” rating and issued a $85.00 target price on shares of Graco in a research note on Monday, February 2nd. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $96.50.

Graco Stock Performance

The stock has a 50 day moving average price of $85.31 and a 200 day moving average price of $84.12. The company has a market capitalization of $15.63 billion, a P/E ratio of 30.51, a PEG ratio of 2.91 and a beta of 1.08.

Graco (NYSE:GGG) last announced its quarterly earnings data on Monday, January 26th. The industrial products company reported $0.77 EPS for the quarter, hitting the consensus estimate of $0.77. Graco had a net margin of 23.33% and a return on equity of 19.49%. The business had revenue of $593.16 million for the quarter, compared to analyst estimates of $591.99 million. During the same quarter in the previous year, the firm posted $0.64 earnings per share. The company’s revenue for the quarter was up 8.1% on a year-over-year basis. As a group, sell-side analysts expect that Graco Inc. will post 3.06 earnings per share for the current year.

Graco Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, February 4th. Shareholders of record on Monday, January 19th were given a $0.295 dividend. This is an increase from Graco’s previous quarterly dividend of $0.28. This represents a $1.18 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Friday, January 16th. Graco’s dividend payout ratio (DPR) is 38.19%.

Graco announced that its Board of Directors has authorized a stock repurchase program on Friday, December 5th that permits the company to repurchase 15,000,000 shares. This repurchase authorization permits the industrial products company to reacquire shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Graco

In other Graco news, EVP Kathryn L. Schoenrock sold 2,223 shares of the stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $88.06, for a total transaction of $195,757.38. Following the completion of the transaction, the executive vice president owned 7,846 shares in the company, valued at $690,918.76. This trade represents a 22.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Angela F. Wordell sold 2,832 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $93.22, for a total transaction of $263,999.04. Following the completion of the sale, the executive vice president directly owned 13,360 shares in the company, valued at approximately $1,245,419.20. This trade represents a 17.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 19,394 shares of company stock valued at $1,739,326 in the last three months. 2.19% of the stock is owned by company insiders.

Hedge Funds Weigh In On Graco

A number of large investors have recently made changes to their positions in the stock. Root Financial Partners LLC purchased a new stake in Graco during the 3rd quarter worth about $29,000. NewSquare Capital LLC increased its position in shares of Graco by 320.7% during the second quarter. NewSquare Capital LLC now owns 345 shares of the industrial products company’s stock valued at $30,000 after buying an additional 263 shares during the period. CX Institutional lifted its holdings in shares of Graco by 316.7% in the third quarter. CX Institutional now owns 475 shares of the industrial products company’s stock worth $40,000 after buying an additional 361 shares in the last quarter. Assetmark Inc. lifted its holdings in shares of Graco by 42.6% in the third quarter. Assetmark Inc. now owns 465 shares of the industrial products company’s stock worth $40,000 after buying an additional 139 shares in the last quarter. Finally, Field & Main Bank bought a new position in shares of Graco in the fourth quarter valued at approximately $41,000. 93.88% of the stock is 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.