Griffon (NYSE:GFF) Sets New 12-Month High After Better-Than-Expected Earnings

Shares of Griffon Co. (NYSE:GFF) reached a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $77.99 and last traded at $73.76, with a volume of 199124 shares changing hands. The stock had previously closed at $67.75.

The conglomerate reported $1.35 EPS for the quarter, beating analysts’ consensus estimates of $0.84 by $0.51. The firm had revenue of $672.88 million for the quarter, compared to analysts’ expectations of $625.22 million. Griffon had a return on equity of 72.80% and a net margin of 2.65%. The business’s revenue for the quarter was down 5.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.21 EPS.

Griffon Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 20th. Shareholders of record on Wednesday, May 29th will be issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.82%. Griffon’s payout ratio is 44.78%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on GFF shares. StockNews.com raised Griffon from a “buy” rating to a “strong-buy” rating in a report on Thursday, May 2nd. Raymond James raised their price objective on shares of Griffon from $60.00 to $75.00 and gave the company a “strong-buy” rating in a research report on Monday, February 5th. Robert W. Baird raised their price target on shares of Griffon from $82.00 to $84.00 and gave the company an “outperform” rating in a report on Thursday, April 18th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on shares of Griffon from $72.00 to $82.00 and gave the stock a “buy” rating in a report on Monday, January 22nd. Two equities research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Strong Buy” and a consensus price target of $69.50.

Insider Activity

In related news, Director James W. Sight sold 2,000 shares of the stock in a transaction on Thursday, February 8th. The stock was sold at an average price of $67.38, for a total value of $134,760.00. Following the transaction, the director now owns 18,843 shares of the company’s stock, valued at $1,269,641.34. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 16.10% of the company’s stock.

Institutional Trading of Griffon

Hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC purchased a new position in shares of Griffon in the fourth quarter worth about $30,000. Scarborough Advisors LLC bought a new position in Griffon during the 4th quarter worth approximately $35,000. Parkside Financial Bank & Trust increased its stake in Griffon by 671.1% in the 4th quarter. Parkside Financial Bank & Trust now owns 640 shares of the conglomerate’s stock worth $39,000 after purchasing an additional 557 shares during the period. Sage Rock Capital Management LP bought a new stake in Griffon in the fourth quarter valued at approximately $98,000. Finally, Russell Investments Group Ltd. boosted its stake in shares of Griffon by 11.2% during the fourth quarter. Russell Investments Group Ltd. now owns 3,336 shares of the conglomerate’s stock valued at $203,000 after purchasing an additional 336 shares during the period. 73.22% of the stock is owned by institutional investors.

Griffon Price Performance

The firm’s fifty day moving average price is $69.68 and its 200-day moving average price is $60.01. The company has a quick ratio of 1.24, a current ratio of 2.46 and a debt-to-equity ratio of 5.02. The stock has a market cap of $3.71 billion, a P/E ratio of 54.96 and a beta of 1.43.

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications.