Louis J. Grabowsky, a director at Griffon Corp (NYSE:GFF), recently sold a total of 11,000 shares of common stock in two separate transactions on November 14. The shares were sold at prices ranging from $77.02 to $77.53 per share, resulting in a total transaction value of approximately $847,271. Following these transactions, Grabowsky's direct ownership in Griffon Corp stands at 51,076 shares.
In other recent news, Griffon Corp has reported robust fourth-quarter results, surpassing expectations in several areas. The financial services firm Stephens has subsequently raised its price target for Griffon Corp to $100.00, maintaining an Overweight rating on the stock. The company's adjusted EBITDA margin expanded significantly, primarily due to growth in the Home & Building Products (HBP) and Consumer and Professional Products (CPP) segments. In recent developments, Griffon Corp's management has provided slightly lower sales and adjusted EBITDA guidance for fiscal year 2025, but the implied margin guidance exceeded expectations. The company is also projecting around $1 billion in free cash flow over the next three years, a substantial increase in net income. Despite a 6% decline in revenue for the CPP segment, Griffon Corp has increased its quarterly dividend by 20% to $0.18 per share and repurchased 4.8 million shares.
InvestingPro Insights
While Louis J. Grabowsky's recent sale of Griffon Corp (NYSE:GFF) shares might raise eyebrows, a closer look at the company's performance and financial metrics reveals a more nuanced picture. According to InvestingPro data, Griffon's stock has shown remarkable strength, with a 76.27% total return over the past year. This impressive performance is further underscored by the stock trading at 91.29% of its 52-week high, suggesting sustained investor confidence.
InvestingPro Tips highlight that Griffon has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. Moreover, the company's management has been aggressively buying back shares, which often signals confidence in the company's future prospects and can potentially boost earnings per share.
From a valuation perspective, Griffon's P/E ratio (adjusted) stands at 14.77, which is relatively modest considering the company's strong performance. The PEG ratio of 0.09 suggests that the stock may be undervalued relative to its growth potential. Additionally, Griffon's revenue for the last twelve months reached $2.62 billion, with a healthy gross profit margin of 40.26%.
These insights provide context to Grabowsky's stock sale and suggest that Griffon Corp continues to demonstrate financial strength and market appeal. Investors seeking a more comprehensive analysis can access 13 additional InvestingPro Tips for Griffon Corp, offering a deeper understanding of the company's position and potential.
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