NEW YORK—Samanta Hegedus, a director at Griffon Corp (NYSE:GFF), has sold a portion of her holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transaction, dated November 14, 2024, involved the sale of 3,095 shares of Griffon Corp's common stock at a price of $80.49 per share, totaling approximately $249,116.
Following this sale, Hegedus retains ownership of 24,357 shares in the company. The transaction was executed as a direct ownership sale, as indicated in the filing.
In other recent news, Griffon Corporation posted robust fourth-quarter results, outperforming expectations. The financial services firm, Stephens, subsequently raised its price target for Griffon to $100, while maintaining an Overweight rating. Griffon reported significant expansion in its adjusted EBITDA margin, largely due to lower material costs and successful global sourcing strategies. Despite challenging macroeconomic conditions, the company provided sales and adjusted EBITDA guidance for fiscal year 2025, slightly below analyst estimates, yet the margin guidance exceeded expectations.
Griffon's management projects about $1 billion in free cash flow over the next three years, signaling a considerable increase in net income. The company's Home & Building Products (HBP) segment demonstrated a steady revenue stream, contributing to the projected free cash flow, which is slated for share repurchases, debt reduction, and strategic investments. However, the Consumer and Professional Products (CPP) segment saw a 6% decline in revenue, despite a 44% increase in EBITDA to $73 million.
The company also repurchased 4.8 million shares and increased its quarterly dividend by 20% to $0.18 per share. For fiscal 2025, Griffon anticipates a consistent revenue of $2.6 billion, with adjusted EBITDA expected to range between $575 million and $600 million. These recent developments underscore Griffon's strategic financial planning and commitment to improving profitability and shareholder value.
InvestingPro Insights
While Samanta Hegedus's recent sale of Griffon Corp (NYSE:GFF) shares might raise questions, it's important to consider the broader financial context of the company. According to InvestingPro data, Griffon Corp has a market capitalization of $3.55 billion and a P/E ratio of 16.97, suggesting a reasonable valuation relative to earnings.
Notably, Griffon Corp has demonstrated strong performance in the market, with InvestingPro Tips highlighting significant returns over various timeframes. The company has achieved a remarkable 76.27% total return over the past year, and an impressive 21.43% return in the last three months alone. This positive momentum could indicate investor confidence in the company's prospects despite the insider sale.
Furthermore, Griffon Corp has maintained a consistent dividend policy, with InvestingPro Tips noting that the company has raised its dividend for 4 consecutive years and maintained payments for 14 consecutive years. This commitment to shareholder returns, coupled with a current dividend yield of 0.93%, may provide some reassurance to investors.
It's worth noting that InvestingPro offers 13 additional tips for Griffon Corp, providing a more comprehensive analysis for investors seeking deeper insights into the company's financial health and market position.
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