Griffon Corp (NYSE:GFF) CEO and Chairman of the Board, Ronald J. Kramer, has sold a significant amount of company stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on September 23, 2024, involved the sale of 20,135 shares at a weighted average price of $70.01 per share, resulting in a total sale value of approximately $1.41 million.
The shares were sold in multiple transactions with prices ranging from $70.00 to $70.07. Following the sale, Kramer still holds a substantial amount of Griffon Corp stock, owning 2,195,131 shares directly. Additionally, indirect holdings include 5,007 shares by an Employee Stock Ownership Plan (ESOP) and 40,298 shares by Kramer's spouse and children.
Griffon Corp, a company known for its manufacturing of metal doors, sash, frames, molding, and trim, has its headquarters in New York and is incorporated in Delaware. The company's fiscal year ends on September 30.
Investors and market watchers often pay close attention to insider transactions such as these, as they can provide insights into executives' perspectives on the company's future performance. However, it is important to note that there can be many reasons for an insider to sell stock, and such sales do not necessarily indicate a lack of confidence in the company.
The SEC filing ensures transparency in the market by providing shareholders and potential investors with information about insider transactions. Ronald J. Kramer's recent stock sale is now part of the public record for current and future shareholders to consider as they make investment decisions regarding Griffon Corp.
In other recent news, The Toro Company (NYSE:TTC) has sold its Pope Products business to The AMES Company, a subsidiary of Griffon Corporation. This strategic move aims to streamline Toro's portfolio and concentrate on areas with potential for profitable growth. The divestiture is not expected to significantly impact Toro's fiscal 2024 results. The company, operating globally in over 125 countries, reported net sales of $4.55 billion in fiscal 2023.
Simultaneously, Griffon Corporation has expanded its presence in the Australian market with the acquisition of Pope, a residential watering products company. This acquisition is anticipated to bring an additional $25 million in annualized revenue and positively impact Griffon's earnings within the first full year of ownership.
Further, Griffon Corporation has announced the successful repricing of its Secured Term Loan B facility, which is anticipated to save approximately $1.8 million in annual cash interest expenses. The company also reported strong Q2 results for fiscal year 2024, surpassing expectations, and raised its full-year revenue guidance to $2.65 billion. These recent developments reflect Griffon's commitment to enhancing shareholder value and its strategic plan for growth.
InvestingPro Insights
Amid the news of CEO Ronald J. Kramer's stock sale, Griffon Corp (NYSE:GFF) presents an interesting profile when examined through the lens of InvestingPro data and insights. The company boasts a market capitalization of $3.38 billion, reflecting its significant presence in the manufacturing sector. Notably, Griffon Corp's P/E ratio stands at 17.71, suggesting that investors are paying less than $18 for every dollar of earnings, which can be appealing for value-oriented investors. Adjusting for the last twelve months as of Q3 2024, the P/E ratio becomes even more attractive at 15.33.
InvestingPro Tips highlight several key factors about Griffon Corp's financial health and strategic moves. Management's aggressive share buybacks and the maintenance of dividend payments for 14 consecutive years underscore a commitment to shareholder returns. Additionally, the company has not only raised its dividend for four consecutive years but also boasts a high shareholder yield. This could indicate a robust financial strategy, particularly in rewarding loyal investors.
It's also worth noting that Griffon Corp's liquid assets exceed its short-term obligations, providing a cushion for operational flexibility. For those considering long-term investment, Griffon Corp has demonstrated a high return over the last decade, which is a testament to its enduring performance in a competitive industry.
For more detailed analysis and additional InvestingPro Tips, interested parties can find 13 more tips on the company's profile at InvestingPro. These insights could prove invaluable for investors looking to make informed decisions about their investment in Griffon Corp.
As of the latest data, the company's stock is trading at 88.22% of its 52-week high, with a previous close price of $69.78. With an upcoming earnings date on November 13, 2024, investors will be keen to see if the company's performance aligns with the optimistic projections suggested by some of the InvestingPro Tips.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.