Kathryn L. Schoenrock, the Executive Vice President and Chief Information Officer of Graco Inc . (NYSE:GGG), recently sold 1,527 shares of the company's common stock. The sale, executed on November 27, 2024, was conducted at a weighted average price of approximately $90.30 per share, resulting in a total transaction value of $137,881.
In addition to the sale, Schoenrock exercised stock options to acquire 2,415 shares at $24.79 per share, valued at $59,876. Following these transactions, Schoenrock holds a total of 6,374 shares of Graco Inc. common stock.
Graco Inc., headquartered in Minneapolis, Minnesota, is known for its manufacturing of pumps and pumping equipment.
In other recent news, Graco Inc. has amended its credit agreement, extending the maturity of its $750 million credit facility from March 2026 to October 2029, providing the company with increased financial flexibility. The amendment also removes certain adjustments to the margin percentages for loans and the facility fee rate. In the third quarter, Graco reported a decrease in sales and adjusted net earnings, falling to $519 million and $122 million respectively, a 4% and 8% drop compared to the previous period. Goldman Sachs (NYSE:GS) maintained a Neutral stance on Graco, following the company's reported sales and earnings before interest and taxes (EBIT), which fell short of consensus expectations. Despite this, Graco reported a 50 basis point increase in gross margins for the quarter, demonstrating the success of its pricing strategy. The company also announced a restructuring into four business divisions aimed at improving growth and efficiency. Acquisitions of PCT Systems and Corob are expected to bolster annual revenues by approximately $130 million. Graco has maintained its full-year 2024 organic growth guidance at a low single-digit decline. These are the recent developments for Graco Inc.
InvestingPro Insights
As Kathryn L. Schoenrock's recent stock transactions draw attention, it's worth examining Graco Inc.'s financial health and market position. According to InvestingPro data, Graco boasts a market capitalization of $15.3 billion, reflecting its significant presence in the pumps and pumping equipment industry.
The company's financial strength is underscored by several InvestingPro Tips. Notably, Graco holds more cash than debt on its balance sheet, indicating a robust financial position. This liquidity is further emphasized by the fact that its liquid assets exceed short-term obligations, providing financial flexibility and stability.
Graco's commitment to shareholder returns is evident in its dividend history. An InvestingPro Tip highlights that the company has maintained dividend payments for an impressive 54 consecutive years, with 19 years of consecutive dividend raises. This consistent dividend growth, coupled with a current dividend yield of 1.13%, may appeal to income-focused investors.
The company's profitability metrics are also noteworthy. Graco reported a gross profit margin of 53.64% for the last twelve months as of Q3 2024, which aligns with the InvestingPro Tip noting "impressive gross profit margins." This strong profitability is further supported by an operating income margin of 26.51% over the same period.
However, investors should consider that Graco is trading at relatively high valuation multiples. The P/E ratio stands at 31.28, which the InvestingPro Tips characterize as "trading at a high earnings multiple." Similarly, the Price to Book ratio of 6.08 is flagged as high, suggesting that the stock may be priced at a premium relative to its book value.
Despite these valuation concerns, Graco's stock has shown positive momentum, with a 12.85% total return over the past year and a 10.25% return in the last month. The stock is currently trading at 95.56% of its 52-week high, indicating strong recent performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips on Graco Inc., providing a deeper dive into the company's financial health and market prospects.
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