Why Should You Put Graco Inc. (NYSE :GGG) On Your Portfolio?


The Vanguard Group, Inc. recently announced the acquisition of new stake in Graco Inc. (NYSE:GGG). The institutional investor has increased its shareholding in the Industrials company by 1.57% to 16.82 million shares with purchase of 0.26 million shares. This fresh investment now brings its stake to 10.10% valued currently at $811.0 million. In addition, Fiera Capital Corp. (Investment M… raised its holdings by 44393.0 to 11.49 million shares. And SSgA Funds Management, Inc. has lifted its position by 54.33% or 2.19 million shares – to 6.22 million shares.

With over 0.61 million Graco Inc. (GGG) shares trading Monday and a closing price of $48.27 on the day, the dollar volume was approximately $29.63 million. The shares have shown a positive weekly performance of 3.07% and its price on 07/06/20 lost nearly -0.49%. Currently, there are 167.98M common shares owned by the public and among those 164.68M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for GGG have a consensus price objective of $48.60. The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $47.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Graco Inc. stock is 3.00 for the next 12 months. The average price target is 0.68% above its last price level and an upside to the estimated low will see the stock lose -2.7% over that period. But an upside of 3.46% will see the stock hit the forecast high price target while mean target price for the stock is $49.00.

Insiders at the company have transacted a total of 63 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 34 of these insider trades were purchases, accounting for 794,975 shares. Insider sales of the common stock occurred on 29 occasions, with total insider shares sold totaling 712,671 shares.

The top 3 mutual fund holders in Graco Inc. are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 4.8 million shares of the company’s stock, all valued at over $231.42 million. The company sold 32484.0 shares recently to bring their total holdings to about 2.88% of the shares outstanding. iShares Core S&P Mid Cap ETF bought 9450.0 shares to see its total holdings expand to 4.54 million shares valued at over $218.87 million and representing 2.73% of the shares outstanding. Vanguard Small Cap Index Fund sold 34270.0 shares to bring its total holdings to over 4.32 million shares at a value of $208.27 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.59% of the shares outstanding.

Shares of Graco Inc. (NYSE: GGG) opened at $49.42, up $0.91 from a prior closing price of $48.51. However, the script later closed the day at $48.27, down -0.49%. The company’s stock has a 5-day price change of 3.07% and 5.92% over the past three months. GGG shares are trading -7.17% year to date (YTD), with the 12-month market performance down to -5.13% lower. It has a 12-month low price of $38.43 and touched a high of $56.99 over the same period. Currently, 0.61 million shares have been traded, compared to an average intraday trading volume of 812.15K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.61%, 1.86%, and -0.62% respectively.

Institutional ownership of Graco Inc. (NYSE: GGG) shares accounts for 88.20% of the company’s 167.98M shares outstanding. Mutual fund holders own 41.92%, while other institutional holders and individual stakeholders account for 46.00% and 2.96% respectively.

It has a market capitalization of $7.86B and a beta (3y monthly) value of 0.56. The stock’s trailing 12-month PE ratio is 25.17, while the earnings-per-share (ttm) stands at $1.92. The company has a PEG of 3.15 and a Quick Ratio of 2.40 with the debt-to-equity ratio at 0.44. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.11% over the week and 2.70% over the month.

Earnings per share for the fiscal year are expected to increase by 1.80%, and 23.59% over the next financial year. EPS should shrink at an annualized rate of 8.00% over the next five years, compared to 10.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate Graco Inc. (GGG) as a “Hold” at a consensus score of 3.00. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 10 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the GGG, a number of firms have released research notes about the stock. Jefferies stated their Hold rating for the stock in a research note on January 25, 2019, with the firm’s price target at $46. B. Riley FBR Inc. coverage for the Graco Inc. (GGG) stock in a research note released on January 30, 2018 offered a Neutral rating with a price target of $50. Deutsche Bank was of a view on January 23, 2018 that the stock is Buy, while Wolfe Research gave the stock Peer Perform rating on July 31, 2017 . RBC Capital Mkts on their part issued Sector Perform rating on February 01, 2017.


Please enter your comment!
Please enter your name here