Griffon Corp (NYSE:GFF) has reported that Robert F. Mehmel, the company's President and Chief Operating Officer, sold a total of 3,349 shares of the company's common stock. The transactions, which took place between September 27 and October 1, resulted in a total sale value exceeding $230,000.
According to the SEC filing, the shares were sold at weighted average prices ranging from $70.01 to $70.04. The sales occurred in multiple transactions with prices varying from $70.00 to $70.195. The exact number of shares sold at each price point within this range can be provided by the reporting person upon request.
Following these transactions, Mehmel's direct holdings in Griffon Corp common stock have decreased, yet he still owns a substantial number of shares amounting to 747,523. Additionally, it is noted that Mehmel has an indirect ownership of 3,999 shares through an Employee Stock Ownership Plan (ESOP), reflecting allocations since his last reported ownership.
Griffon Corp, headquartered in New York, operates in the manufacturing sector, specifically focusing on metal doors, sash, frames, molding, and trim. Investors typically monitor insider transactions as they can provide insights into an executive's confidence in the company's future performance.
The transactions were executed in accordance with the Securities and Exchange Commission regulations, and the details have been fully disclosed as per the requirements for corporate executives and insiders.
In other recent news, The Toro Company (NYSE:TTC) has sold its Pope Products business to The AMES Company, a subsidiary of Griffon Corporation. This strategic move aims to streamline Toro's portfolio and concentrate on areas of potential for profitable growth. Financially, the divestiture of Pope Products is not expected to significantly impact The Toro Company's fiscal 2024 results.
Griffon Corporation, through its AMES subsidiary, has expanded its presence in the Australian market with the acquisition of Pope. The acquisition is expected to bring in an additional $25 million in annualized revenue and positively impact Griffon's earnings within the first full year of ownership. This move is seen as a strategic step to strengthen Griffon's position in the global market, especially in Australia.
On the financial front, Griffon Corporation reported a strong start to fiscal year 2024, surpassing market expectations. Despite a decrease in the Consumer and Professional Products segment's revenue, EBITDA showed improvement. The company also raised its full-year revenue guidance to $2.65 billion, with a $30 million increase in segment adjusted EBITDA forecasted at $555 million.
InvestingPro Insights
Griffon Corp's recent insider selling activity by Robert F. Mehmel comes amid a period of strong performance for the company. According to InvestingPro data, Griffon has seen a remarkable 78.21% price total return over the past year, indicating significant market confidence in the company's prospects.
Despite the insider sale, several InvestingPro Tips suggest a positive outlook for Griffon. The company has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. Additionally, Griffon's management has been aggressively buying back shares, which often signals confidence in the company's value.
From a valuation perspective, Griffon is trading at a low P/E ratio of 15.48 (adjusted for the last twelve months) relative to its near-term earnings growth. This suggests that the stock may be undervalued compared to its growth prospects. The company's PEG ratio of 0.12 further supports this view, indicating that the stock could be attractively priced relative to its earnings growth potential.
It's worth noting that Griffon's revenue for the last twelve months stands at $2.61 billion, with a healthy gross profit margin of 39.79%. The company's operating income margin of 15.97% also points to efficient operations.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Griffon Corp, providing a deeper understanding of the company's financial health and market position.
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