Griffon Corp (NYSE:GFF) Chairman of the Board and CEO, Ronald J. Kramer, has sold a significant portion of his company shares, according to the latest filings. Investors following the company's insider transactions noted that Kramer disposed of shares in a series of transactions valued at over $6.7 million.
The transactions, all executed on June 12, 2024, involved the sale of 41,175 shares at an average price of $66.49, 47,748 shares at an average price of $67.36, and 11,077 shares at an average price of $68.00. These sales took place at prices ranging from $65.92 to $68.18, as detailed in the footnotes of the filing. Following these sales, Kramer still retains a substantial stake in the company, with 2,500,746 shares of Griffon Corp's common stock.
Griffon Corp, known for its manufacturing of metal doors, sash, frames, molding, and trim, has its shares publicly traded under the ticker symbol GFF. The sales by Kramer represent a notable change in his holdings and may interest investors tracking insider activity as a signal for their own investment decisions.
It's important for investors to note that the filing reflects transactions on the non-derivative securities of the company, and the total value of $6,707,267 only accounts for actual stock sales, not option exercises or other forms of derivative securities.
The Form 4 filing also mentioned indirect holdings by Kramer, including 4,996 shares held by an Employee Stock Ownership Plan (ESOP) and 40,298 shares held by family members. These details provide a more comprehensive view of Kramer's total interest in Griffon Corp, beyond his direct transactions.
As insiders like Kramer have access to comprehensive information about their companies, their trading activities are often closely watched. While the reasons behind Kramer's decision to sell a portion of his holdings are not disclosed in the filing, the transaction details are now fully available for investors to consider as they evaluate their positions in Griffon Corp.
In other recent news, Griffon Corporation has reported a strong start to the fiscal year 2024, surpassing Q2 expectations and raising its full-year revenue guidance to $2.65 billion. The Home and Building Products (HBP) segment performed particularly well, with revenue and EBITDA exceeding projections. However, the Consumer and Professional Products (CPP) segment saw a decrease in revenue due to lower demand in North America and the UK, despite an improvement in EBITDA figures.
The company has successfully advanced its Global Sourcing strategy, ceased operations at specific US facilities, and forecasted an increase in segment adjusted EBITDA to $555 million, up by $30 million. Griffon Corporation also executed share repurchases and authorized a quarterly dividend, as part of its commitment to returning value to shareholders.
In terms of future expectations, Griffon anticipates inventory levels to normalize by the end of the fiscal year and projects gross margins to expand further into 2025. The company also has a robust pipeline of potential acquisitions and is actively considering M&A opportunities. These are among the recent developments at Griffon Corporation.
InvestingPro Insights
As investors digest the news of Griffon Corp's CEO Ronald J. Kramer selling a notable portion of his shares, it's crucial to consider the company's financial health and market performance for a broader context. Here are some key metrics and insights from InvestingPro that could shed light on the situation:
InvestingPro Data indicates that Griffon Corp has a Market Cap of approximately $3.31 billion USD and is trading at a P/E Ratio of 16.78. The company's revenue for the last twelve months as of Q2 2024 stands at $2.64 billion USD, with a Gross Profit Margin of 39.69%. These figures suggest a solid financial foundation, which might provide some reassurance to investors following the insider selling activity.
An InvestingPro Tip to consider is that Griffon Corp has been aggressively buying back shares, which could indicate management's confidence in the company's value. Additionally, Griffon has maintained dividend payments for 14 consecutive years and has raised its dividend for 4 consecutive years, reflecting a commitment to returning value to shareholders.
Investors interested in a deeper analysis of Griffon Corp, including more InvestingPro Tips, can find additional insights at https://www.investing.com/pro/GFF. There are currently 13 additional tips listed on InvestingPro that could be valuable for evaluating the company's prospects. To access these tips and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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