Robert F. Mehmel, President and Chief Operating Officer of Griffon Corp (NYSE:GFF), has sold a significant portion of his common stock holdings in the company. According to a recent regulatory filing, Mehmel disposed of shares totaling approximately $1.87 million. The transactions, which took place on November 13, 2024, involved selling shares at prices ranging from $73.13 to $76.20 per share.
Following these transactions, Mehmel's direct ownership of Griffon Corp shares stands at 712,914. Additionally, he holds 3,999 shares indirectly through an Employee Stock Ownership Plan (ESOP). The sales were executed as part of a pre-arranged trading plan, allowing executives to sell a predetermined number of shares at specific times.
In other recent news, Griffon Corp has been the subject of analyst attention, with Stephens maintaining an Overweight rating on the stock and raising its price target to $100.00. This follows Griffon's Q4 results, which surpassed expectations, especially in terms of adjusted EBITDA margin expansion. The margin growth was attributed to the Home & Building Products (HBP) and Consumer and Professional Products (CPP) divisions' performance and a successful global sourcing strategy.
Recent developments also include Griffon's management providing sales and adjusted EBITDA guidance for fiscal year 2025, which was slightly below analyst estimates, but with implied margin guidance exceeding expectations. The company projects approximately $1 billion in free cash flow over the next three years.
Griffon's recent earnings call highlighted a consistent revenue stream from its HBP segment and improved profitability in its CPP segment. The company repurchased 4.8 million shares and raised 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.
InvestingPro Insights
While Robert F. Mehmel's recent stock sale might raise eyebrows, it's crucial to consider Griffon Corp's overall financial health and market performance. According to InvestingPro data, Griffon Corp (NYSE:GFF) boasts a market capitalization of $3.55 billion and has demonstrated impressive stock performance. The company's shares have shown a robust 76.27% total return over the past year, with a 21.43% gain in the last three months alone.
Griffon's financial metrics paint a picture of a company with solid fundamentals. The company's P/E ratio stands at 16.97, suggesting a reasonable valuation compared to earnings. Moreover, Griffon has maintained a healthy gross profit margin of 40.26% over the last twelve months, indicating strong pricing power and cost management.
InvestingPro Tips highlight additional positive aspects of Griffon's financial strategy. The company has been aggressively buying back shares, which often signals management's confidence in the company's future prospects. Furthermore, Griffon has raised its dividend for 4 consecutive years, demonstrating a commitment to returning value to shareholders.
It's worth noting that InvestingPro offers 13 additional tips for Griffon Corp, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable when interpreting executive stock transactions in the broader context of company performance.
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