Rakuten Investment Management Inc. Buys Shares of 28,684 Graco Inc. $GGG

Rakuten Investment Management Inc. bought a new stake in shares of Graco Inc. (NYSE:GGG) in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 28,684 shares of the industrial products company’s stock, valued at approximately $2,477,000.

A number of other hedge funds also recently modified their holdings of GGG. Root Financial Partners LLC purchased a new position in Graco in the third quarter valued at approximately $29,000. NewSquare Capital LLC raised its stake in shares of Graco by 320.7% in the second quarter. NewSquare Capital LLC now owns 345 shares of the industrial products company’s stock valued at $30,000 after buying an additional 263 shares during the period. CX Institutional lifted its position in shares of Graco by 316.7% during the 3rd quarter. CX Institutional now owns 475 shares of the industrial products company’s stock valued at $40,000 after buying an additional 361 shares during the last quarter. Geneos Wealth Management Inc. grew its stake in shares of Graco by 982.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company’s stock worth $42,000 after acquiring an additional 452 shares during the period. Finally, TD Private Client Wealth LLC increased its holdings in Graco by 116.9% in the 3rd quarter. TD Private Client Wealth LLC now owns 514 shares of the industrial products company’s stock worth $44,000 after acquiring an additional 277 shares during the last quarter. Institutional investors own 93.88% of the company’s stock.

Graco Trading Down 1.2%

Shares of NYSE:GGG opened at $86.51 on Friday. The company has a 50 day moving average of $83.51 and a 200 day moving average of $84.00. The stock has a market cap of $14.34 billion, a P/E ratio of 29.52, a P/E/G ratio of 2.76 and a beta of 1.09. Graco Inc. has a 12 month low of $72.06 and a 12 month high of $89.67.

Graco (NYSE:GGG) last announced its quarterly earnings results on Wednesday, October 22nd. The industrial products company reported $0.73 EPS for the quarter, missing the consensus estimate of $0.75 by ($0.02). The firm had revenue of $543.36 million during the quarter, compared to the consensus estimate of $563.07 million. Graco had a net margin of 22.72% and a return on equity of 18.89%. The firm’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.71 earnings per share. On average, equities analysts forecast that Graco Inc. will post 3.06 earnings per share for the current fiscal year.

Graco announced that its Board of Directors has initiated a share buyback plan on Friday, December 5th that allows the company to buyback 15,000,000 shares. This buyback authorization allows the industrial products company to reacquire shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Graco Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 4th. Investors of record on Monday, January 19th will be paid a dividend of $0.295 per share. This is a positive change from Graco’s previous quarterly dividend of $0.28. This represents a $1.18 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, January 16th. Graco’s dividend payout ratio is 40.27%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. KeyCorp reaffirmed a “sector weight” rating on shares of Graco in a report on Thursday, October 23rd. Royal Bank Of Canada restated an “outperform” rating on shares of Graco in a research note on Thursday, January 15th. Robert W. Baird set a $89.00 price objective on shares of Graco in a report on Friday, October 24th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Graco in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $87.00.

Graco Company Profile

Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco’s solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.

The company’s product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.