Griffon Corp (NYSE:GFF) President and Chief Operating Officer, Robert F. Mehmel, sold a total of 3,174 shares of the company's common stock on September 23, 2024, for an average price of $70.01 per share, resulting in a total transaction value of $222,211. The shares were sold in multiple transactions at prices ranging from $70.00 to $70.055.
Following this transaction, Mehmel continues to directly own 750,872 shares of Griffon Corp, indicating a strong ongoing investment in the company. Additionally, it was noted that there are 3,991 shares of common stock indirectly held by the Employee Stock Ownership Plan (ESOP).
Griffon Corp, headquartered in New York and incorporated in Delaware, operates in the manufacturing sector, specifically focusing on metal doors, sash, frames, molding, and trim. The sale by Mehmel was reported in accordance with SEC regulations and reflects a standard executive transaction.
Investors and shareholders of Griffon Corp can request detailed information about the exact number of shares sold at each price point within the reported range from the company. The transaction was legally signed off by attorney-in-fact Seth L. Kaplan on September 25, 2024.
In other recent news, The Toro Company (NYSE:TTC) has sold its Pope Products business to The AMES Company, a subsidiary of Griffon Corporation. This strategic move aims to streamline Toro's portfolio and concentrate on areas with more potential for profitable growth. The divestiture is not expected to significantly impact Toro's fiscal 2024 results. The Toro Company, operating in over 125 countries, reported net sales of $4.55 billion in fiscal 2023.
Griffon Corporation, through its subsidiary The AMES Companies, has expanded its presence in the Australian market with the acquisition of Pope. Expected to bring in an additional $25 million in annualized revenue, the acquisition is projected to positively impact Griffon's earnings within the first full year of ownership. Griffon has also successfully repriced its Secured Term Loan B facility, a move anticipated to save the company approximately $1.8 million in annual cash interest expenses.
Griffon started fiscal year 2024 strongly, surpassing expectations with robust revenue and EBITDA figures. Despite a decrease in the Consumer and Professional Products segment's revenue, EBITDA showed improvement. The company also raised its full-year revenue guidance to $2.65 billion, with a $30 million increase in segment adjusted EBITDA forecasted at $555 million.
InvestingPro Insights
Griffon Corp (NYSE:GFF) has been a topic of interest for investors, particularly following the recent share sale by President and COO Robert F. Mehmel. With a keen eye on the company's performance, here are some InvestingPro Insights to consider:
The company boasts a solid market capitalization of $3.38 billion, reflecting its significant presence in the manufacturing sector. Griffon’s commitment to shareholder returns is evident, as management has been aggressively buying back shares, and the company has raised its dividend for four consecutive years, now maintaining dividend payments for 14 consecutive years. These actions underscore a strong focus on delivering value to shareholders, an aspect that might reassure investors following executive stock sales.
On the financial front, Griffon Corp shows a P/E ratio of 17.71, which adjusts to a more attractive 15.33 when considering the last twelve months as of Q3 2024. This is complemented by a PEG ratio of just 0.12 for the same period, suggesting that the company's earnings growth could be undervalued relative to its peers. However, it's important to note that the company is trading at a high Price / Book multiple of 15.13, which may indicate a premium on its asset value.
InvestingPro Tips highlight that Griffon Corp is expected to continue its profitability streak, with net income projected to grow this year. This is consistent with the analysts' prediction that the company will be profitable this year, having been profitable over the last twelve months. Moreover, Griffon has demonstrated a high return over the last year, with a 76.05% price total return, reflecting strong market confidence. For those interested in further insights, there are 13 additional tips available on InvestingPro.
These insights and data points offer a snapshot of Griffon Corp's financial health and shareholder value proposition, which could be vital for investors making informed decisions in the context of executive share transactions.
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