Jerome L. Coben, a director at Griffon Corp (NYSE:GFF), recently sold 2,052 shares of the company's common stock. The shares were sold at a weighted average price of $76.34, generating a total of $156,649. Following this transaction, Coben retains ownership of 16,525 shares in the company. The sale was executed on November 14, 2024, according to a recent filing with the Securities and Exchange Commission.
In other recent news, Griffon Corporation has been the subject of much discussion following its fiscal fourth-quarter results. The financial services firm Stephens has maintained an Overweight rating on Griffon Corp's stock and raised its price target to $100.00, up from the previous $85.00. This comes after the company reported a significant expansion in its adjusted EBITDA margin, attributed to lower material costs and the successful implementation of a global sourcing strategy.
Recent developments also include Griffon's management providing sales and adjusted EBITDA guidance for fiscal year 2025. While slightly below analyst estimates, the implied margin guidance exceeded expectations. The company's management anticipates margins for Home & Building Products (HBP) and Consumer and Professional Products (CPP) to exceed 30% and 9% respectively in FY25.
The company's fourth-quarter results also showed a steady revenue stream from its HBP segment, contributing to a projected $1 billion in free cash flow over the next three years. However, the CPP segment saw a 6% decline in revenue, despite a 44% increase in EBITDA to $73 million. Despite these challenges, Griffon Corporation anticipates a consistent revenue of $2.6 billion for fiscal 2025, with adjusted EBITDA expected to range between $575 million and $600 million.
InvestingPro Insights
While Jerome L. Coben's recent sale of Griffon Corp (NYSE:GFF) shares might raise eyebrows, a closer look at the company's performance and financial metrics from InvestingPro reveals a more nuanced picture.
Griffon Corp has demonstrated strong market performance, with InvestingPro data showing a remarkable 76.27% total return over the past year. This impressive gain is further supported by robust returns of 21.43% and 13.29% over the last three months and one month, respectively. Such consistent growth suggests that the company's fundamentals remain solid despite the director's recent share sale.
InvestingPro Tips highlight that Griffon has maintained dividend payments for 14 consecutive years, indicating a commitment to shareholder returns. Additionally, the company's management has been aggressively buying back shares, which often signals confidence in the company's future prospects and can potentially boost earnings per share.
From a valuation perspective, Griffon's P/E ratio (adjusted) stands at 14.77, which is relatively modest considering the company's growth trajectory. Moreover, with a market capitalization of $3.55 billion, Griffon appears to be well-positioned in its industry.
It's worth noting that InvestingPro offers 13 additional tips for Griffon Corp, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable for those looking to make informed investment decisions in light of insider transactions like Coben's recent sale.
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