Caroline M. Chambers, President of EMEA at Graco Inc . (NYSE:GGG), recently sold 12,000 shares of the company's common stock. The shares were sold at a weighted average price of $88.49, amounting to a total transaction value of approximately $1.06 million. The sale occurred on November 14, 2024, according to a recent SEC filing.
In the same filing, it was reported that Chambers exercised stock options to acquire 12,000 shares of Graco's common stock at a price of $24.79 per share, totaling approximately $297,520. Following these transactions, Chambers holds 57,425.9949 shares of Graco Inc. stock.
In other recent news, Graco Inc. has been actively managing its financial resources and logistics in response to recent developments. The company has extended the maturity of its $750 million credit facility from March 2026 to October 2029, providing increased financial flexibility. This amendment also removes certain adjustments to margin percentages for loans and the facility fee rate previously tied to a significant acquisition.
In response to potential labor disruptions at East and Gulf Coast ports, Graco has redirected shipments to the West Coast. This action follows the company's anticipation of a possible strike by dockworkers, which could last up to two weeks. The strike risk arises from unresolved negotiations between the International Longshoremen's Association and the United States Maritime Alliance over port automation.
On the financial front, Graco reported a decrease in Q3 sales and adjusted net earnings, with figures coming in at $519 million and $122 million respectively. Despite this downturn, Goldman Sachs (NYSE:GS) maintained its Neutral stance on Graco, with a steady price target of $83.00. The company also announced strategic organizational changes and acquisitions expected to bolster annual revenues by approximately $130 million. These are the recent developments for Graco Inc.
InvestingPro Insights
As Caroline M. Chambers, President of EMEA at Graco Inc. (NYSE:GGG), executes a significant stock transaction, it's worth examining the company's financial health and market position. According to InvestingPro data, Graco boasts a market capitalization of $15.21 billion, reflecting its substantial presence in the industrial machinery sector.
Graco's financial stability is underscored by an InvestingPro Tip noting that the company "holds more cash than debt on its balance sheet." This strong liquidity position is further reinforced by another tip indicating that "liquid assets exceed short term obligations," suggesting a robust financial foundation that could support future growth initiatives and weather potential market uncertainties.
The company's commitment to shareholder returns is evident in its dividend history. An InvestingPro Tip highlights that Graco "has raised its dividend for 19 consecutive years" and "has maintained dividend payments for 54 consecutive years." This long-standing track record of dividend growth may be particularly appealing to income-focused investors.
However, investors should also consider the company's valuation metrics. Graco's P/E ratio stands at 31.16, which some may view as relatively high. This is consistent with an InvestingPro Tip that the stock is "trading at a high earnings multiple." Additionally, the company's Price to Book ratio of 6.05 further suggests a premium valuation compared to book value.
Despite a slight revenue decline of 2.41% over the last twelve months, Graco maintains impressive profitability metrics. The company's gross profit margin of 53.64% is noteworthy, aligning with the InvestingPro Tip that Graco has "impressive gross profit margins."
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips on Graco Inc., providing a deeper understanding of the company's financial health and market position.
Graco Inc., headquartered in Minneapolis, Minnesota, is a leading manufacturer of fluid handling equipment and systems. The company designs, manufactures, and markets systems and equipment to move, measure, control, dispense, and spray fluid and powder materials. Graco serves customers in the manufacturing, processing, construction, and maintenance industries worldwide.
Over the past year, insiders at Graco Inc. have sold a total of 33,000 shares and purchased 0 shares. This recent transaction by Caroline M. Chambers is part of this broader trend of insider selling at the company.
On the day of the transaction, shares of Graco Inc. were trading at $88.49, giving the company a market cap of $14.91 billion. The stock's price-earnings ratio stood at 29.17, which is higher than both the industry median of 21.99 and the company's historical median price-earnings ratio.
With a price of $88.49 and a GuruFocus Value of $77.58, Graco Inc. has a price-to-GF-Value ratio of 1.14, indicating that the stock is modestly overvalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
The recent insider sell by Caroline M. Chambers, along with the overall trend of insider selling at Graco Inc., may be of interest to investors monitoring insider behaviors. However, it's important to note that insider transactions are just one of many factors that investors should consider when evaluating a stock. Other important aspects include the company's financial performance, industry trends, and overall market conditions.
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