Griffon Corp 's (NYSE:GFF) Vice President and Chief Administrative Officer, W. Christopher Durborow, has sold a total of 13,000 shares of the company’s common stock, according to a recent SEC filing. The transaction, which took place on June 12, 2024, fetched a weighted average price of $66.88 per share, with individual sales ranging from $66.50 to $67.51.
The sale resulted in a total transaction value of approximately $869,439. Following the sale, Durborow's direct holdings in Griffon Corp common stock have decreased to 48,368 shares. Additionally, the filing noted an indirect ownership of 3,029 shares by the Executive Savings Plan (ESOP), reflecting allocations since the reporting person's last ownership report.
Investors often monitor insider transactions as they provide insights into executives' confidence in their company's prospects. The details of the transactions, including the range of prices at which the stock was sold, are available upon request from Griffon Corporation or the SEC.
Griffon Corp, listed on the New York Stock Exchange under the ticker GFF, is a diversified management and holding company conducting business through wholly-owned subsidiaries. The company is involved in the manufacturing of metal doors, sash, frames, molding, and trim, among other products.
In other recent news, Griffon Corporation has reported a strong start to the fiscal year 2024, exceeding Q2 expectations and raising its full-year revenue guidance to $2.65 billion. The Home and Building Products (HBP) segment performed particularly well, with robust revenue and EBITDA figures. Despite a decline in the Consumer and Professional Products (CPP) segment's revenue due to decreased demand in North America and the UK, EBITDA showed improvement.
Griffon has also advanced its Global Sourcing strategy, ceased operations at specific US facilities, and increased its segment adjusted EBITDA forecast by $30 million to $555 million. The company continues to provide value to shareholders through share repurchases and quarterly dividends.
Recent developments include a strong residential demand driving volumes, with Griffon anticipating inventory levels to normalize by the end of the fiscal year. The company's gross margins remain strong and are projected to expand further into 2025. Additionally, Griffon is actively considering M&A opportunities and has a robust pipeline of potential acquisitions.
InvestingPro Insights
As Griffon Corp (NYSE:GFF) navigates the market, recent insider transactions have caught the attention of investors. While insider sales can sometimes raise concerns about a company's outlook, it's important to consider them in the context of broader financial metrics and market performance. Here are some key insights from InvestingPro that may help investors gain a clearer picture of Griffon Corp's financial health and future prospects:
Griffon Corp's market capitalization stands at $3.31 billion, reflecting the company's substantial size within its industry. Despite recent revenue declines, with a -6.93% change over the last twelve months as of Q2 2024, the company's strong gross profit margin of 39.69% suggests it has been able to maintain profitability in its operations. Additionally, the P/E ratio, a measure of a company's current share price relative to its per-share earnings, is currently at 16.78, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at a slightly lower 15.17. This could indicate that the company is reasonably valued in terms of earnings.
InvestingPro Tips highlight several positive aspects of Griffon Corp's performance and management strategy. Notably, management has been actively buying back shares and maintaining dividend payments for 14 consecutive years, which speaks to a commitment to shareholder value. Moreover, the company has a track record of raising its dividend for 4 consecutive years, with a significant dividend growth of 50.0% over the last twelve months as of Q2 2024. These factors, combined with a dividend yield of 0.9%, could be attractive to income-focused investors.
For potential investors considering a deeper dive into Griffon Corp, there are additional InvestingPro Tips available, which provide further analysis on the company's financials and market performance. For example, the company is trading at a low P/E ratio relative to near-term earnings growth, and analysts have revised their earnings upwards for the upcoming period. These tips and more can be accessed at https://www.investing.com/pro/GFF, and with the use of coupon code PRONEWS24, new subscribers can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
To summarize, while insider sales can be a critical factor to consider, the broader financial context provided by InvestingPro suggests that Griffon Corp may still present a promising investment opportunity, particularly for those focused on shareholder yield and earnings growth. With 14 additional tips available on InvestingPro, investors have a wealth of information at their fingertips to make informed decisions.
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