Eric Etchart, a director at Graco Inc . (NYSE:GGG), recently executed a series of stock transactions involving the company's common stock. On November 6, Etchart sold a total of 1,866 shares at a price of $88.08 per share, generating proceeds of approximately $164,357.
In addition to the sale, Etchart also exercised non-qualified stock options to acquire 6,000 shares at a price of $26.68 each. These transactions were part of a stock option plan granted under Graco's 2015 Stock Incentive Plan. Following these transactions, Etchart owns 45,407.815 shares of Graco Inc. common stock.
In other recent news, Graco Inc. reported a decrease in sales and adjusted net earnings in the third quarter, with figures coming in at $519 million and $122 million respectively. Despite this, the company experienced a 50 basis point increase in gross margins for the quarter, demonstrating the success of its pricing strategy. Amid these developments, Goldman Sachs maintained its Neutral stance on Graco, keeping its price target steady at $83.00.
Simultaneously, Graco Inc. has amended its credit agreement, extending the maturity of its $750 million credit facility from March 25, 2026, to October 25, 2029. This move is expected to provide Graco with increased financial flexibility.
In other company news, Graco's CEO, Chris Peterson, announced that the company is redirecting shipments to the West Coast to prepare for potential labor disruptions at East and Gulf Coast ports. This decision comes in response to the possibility of a strike by 45,000 dockworkers if a new contract with employers is not secured. These are the recent developments for Graco Inc.
InvestingPro Insights
Graco Inc.'s recent insider activity occurs against a backdrop of strong financial performance and market position. According to InvestingPro data, the company boasts a market capitalization of $14.85 billion, reflecting its significant presence in the industrial machinery sector.
Graco's financial health is underscored by several key metrics. The company maintains impressive gross profit margins of 53.64% for the last twelve months as of Q3 2024, demonstrating efficient cost management and pricing power. This aligns with an InvestingPro Tip highlighting Graco's "impressive gross profit margins."
Moreover, Graco's commitment to shareholder returns is evident in its dividend policy. An InvestingPro Tip reveals that the company "has raised its dividend for 19 consecutive years," with a current dividend yield of 1.15%. This consistent dividend growth, coupled with a 16.74% one-year price total return, suggests a balance between reinvestment in the business and rewarding shareholders.
The stock's recent performance has been particularly noteworthy, with an 8.97% return over the last week. This short-term gain aligns with another InvestingPro Tip indicating a "significant return over the last week," which may be of interest to investors considering the timing of insider transactions.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Graco Inc., providing a deeper understanding of the company's financial position and market outlook.
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