David J. Thompson, President of Worldwide CED at Graco Inc . (NYSE:GGG), recently sold 3,216 shares of the company's common stock. The sale occurred on November 7, 2024, with shares sold at a price of $88.31 each, totaling approximately $284,004.
Earlier on the same day, Thompson exercised stock options to acquire 3,216 shares at a price of $24.7934 per share. Following these transactions, Thompson holds 27,246 shares directly. The shares involved in these transactions were part of the Graco Inc. 2010 Stock Incentive Plan and the 2006 Employee Stock Purchase Plan, both exempt under Rule 16b-3.
In other recent news, Graco Inc. has been making strategic moves amidst challenging market conditions. The company recently amended its credit agreement, extending the maturity of its $750 million credit facility from March 25, 2026, to October 25, 2029. This move, involving U.S. Bank National Association and other lenders, provides Graco with increased financial flexibility.
In terms of financial performance, Graco reported a decrease in Q3 sales and adjusted net earnings, with figures at $519 million and $122 million respectively. Despite the downturn, Graco reported a 50 basis point increase in gross margins for the quarter. Goldman Sachs maintained its Neutral stance on Graco, keeping its price target steady at $83.00.
In the midst of labor disruptions at East and Gulf Coast ports, Graco is redirecting shipments to the West Coast. The potential for a strike by 45,000 dockworkers has led to concerns about further work stoppages at critical ports. These are recent developments for Graco, a company that remains committed to disciplined capital deployment and exploring new market opportunities.
InvestingPro Insights
As David J. Thompson's recent stock transactions at Graco Inc. (NYSE:GGG) draw attention, it's worth examining some key financial metrics and insights provided by InvestingPro to gain a broader perspective on the company's performance and valuation.
Graco's stock has shown impressive resilience, with InvestingPro data indicating a significant 8.97% return over the last week and a 16.74% return over the past year. This recent performance aligns with one of the InvestingPro Tips, which highlights the stock's "Significant return over the last week."
The company's financial health appears robust, with an InvestingPro Tip noting that Graco "Holds more cash than debt on its balance sheet." This strong financial position is further supported by the fact that "Liquid assets exceed short term obligations," providing the company with financial flexibility and stability.
Graco's commitment to shareholder returns is evident in its dividend history. An InvestingPro Tip reveals that the company "Has raised its dividend for 19 consecutive years" and "Has maintained dividend payments for 54 consecutive years." This long-standing track record of dividend growth may be particularly appealing to income-focused investors.
However, investors should also consider the company's valuation metrics. With a P/E ratio of 30.49 and a Price / Book ratio of 5.92, Graco is "Trading at a high earnings multiple" according to another InvestingPro Tip. This premium valuation suggests that the market has high expectations for the company's future growth and performance.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips on Graco Inc., providing a comprehensive view of the company's financial health and market position.
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