Griffon Corp 's (NYSE:GFF) Chairman of the Board and CEO, Ronald J. Kramer, has recently sold a significant amount of the company's stock, transactions that are now available for public view. On September 11, Kramer parted with a total of 100,000 shares at prices ranging from $61.49 to $63.06, culminating in a total sale value of over $6.2 million.
The sales were executed in multiple transactions, with prices for the first batch of 37,366 shares averaging $61.49. The second and largest set of transactions involved 59,393 shares and fetched an average price of $62.70 per share. The final sale was for a smaller parcel of 3,241 shares, averaging $63.06 each. These weighted average prices reflect a range within which the shares were sold, as detailed in the footnotes of the filing.
Following these transactions, Kramer's direct ownership in Griffon Corp stands at 2,260,746 shares. Additionally, indirect holdings through an Employee Stock Ownership Plan (ESOP) and family amount to 45,305 shares.
Griffon Corp, a diversified management and holding company conducting business through wholly-owned subsidiaries, is known for its manufacturing of building products and specialty plastic films. These recent stock sales by a top executive are transactions of interest to investors and market watchers, often indicating a leader's view of the company's current valuation and future prospects.
Investors and analysts typically monitor such insider activity for insights into a company's performance and stock potential. The details of these transactions are publicly filed and can offer a glimpse into the strategic moves of the company's executives.
In other recent news, The Toro Company (NYSE:TTC) has divested its Pope Products business to The AMES Company, a subsidiary of Griffon Corporation. The sale, part of Toro's strategy to concentrate on its core markets, is not expected to significantly impact Toro's fiscal 2024 results. Meanwhile, Griffon Corporation, through its subsidiary AMES, has expanded its Australian market presence with the acquisition of Pope. This strategic acquisition is anticipated to bring in an additional $25 million in annualized revenue and positively impact Griffon's earnings within the first full year of ownership.
In other developments, Griffon has successfully repriced its Secured Term Loan B facility, which is expected to save the company approximately $1.8 million in annual cash interest expenses. This move reflects Griffon's robust financial position and operational performance. Griffon also reported strong Q2 results for fiscal year 2024, raising its full-year revenue guidance to $2.65 billion, with a projected increase in segment adjusted EBITDA to $555 million. These recent developments underscore Griffon's commitment to enhancing shareholder value and its strategic growth plan.
InvestingPro Insights
Amidst the recent insider activity at Griffon Corp (NYSE:GFF), it's noteworthy to consider the company's financial health and market performance. In the last twelve months as of Q3 2024, Griffon Corp reported a revenue of $2.61 billion, with a slight decline in revenue growth at -5.36%. Despite this, the company maintains a strong gross profit margin of 39.79%, indicating efficient control over its cost of goods sold.
InvestingPro Tips highlight that management has been actively supporting the company's stock through share buybacks, which could be a positive signal regarding the company's valuation and management's confidence in its future. Additionally, Griffon Corp has a history of rewarding shareholders, having raised its dividend for 4 consecutive years and maintained dividend payments for 14 consecutive years. These actions suggest a commitment to returning value to investors and a stable financial foundation.
With a market capitalization of $3.28 billion and a P/E ratio of 17.19, which adjusts to a slightly lower 14.9 based on last twelve months' earnings as of Q3 2024, the company appears to be trading at a reasonable valuation relative to its near-term earnings growth. Moreover, the company's assets seem to be in a healthy state, with liquid assets surpassing short-term obligations, providing financial flexibility and a cushion against market volatility.
For those interested in a deeper analysis, InvestingPro offers additional tips, including insights on earnings revisions and profitability predictions for the year. As of now, there are 14 more InvestingPro Tips available for Griffon Corp, which can be accessed through the dedicated link: InvestingPro Griffon Corp.
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