Griffon Corporation (NYSE:GFF) President and COO Robert F. Mehmel has sold a total of $621,045 worth of the company's common stock, according to a recent SEC filing. The transactions took place on September 19 and September 20, with sales prices ranging between $70.00 and $70.385 per share.
On the first day, Mehmel sold 7,663 shares at a weighted average price of $70.02, while the following day, he disposed of 1,205 shares for an average price of $70.11. The sales were executed in multiple transactions, with share prices varying within the stated ranges. The SEC filing included footnotes indicating that the prices reported were weighted averages, and the exact number of shares sold at each price within the range would be provided upon request.
Following these transactions, Mehmel still holds a substantial number of shares in Griffon Corporation. The exact number of shares owned by Mehmel after the sales was reported as 754,046 for direct ownership. Additionally, there are 3,991 shares held indirectly by the ESOP.
Investors often keep a close eye on insider transactions as they can provide insights into the executives' confidence in the company's future performance. The sale of a significant amount of stock by a high-ranking executive like Mehmel may be of particular interest to the market.
Griffon Corporation, headquartered in New York, operates in the manufacturing sector, specializing in metal doors, sash, frames, molding, and trim. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol GFF.
In other recent news, The Toro Company (NYSE:TTC) has sold its Pope Products division to The AMES Company, a subsidiary of Griffon Corporation. The divestiture is part of Toro's strategic plan to concentrate on sectors with potential for profitable growth. The sale is not expected to significantly impact Toro's fiscal 2024 results, with the company having already accounted for this transaction in its forecast.
On the other side, Griffon Corporation has been making significant strides in its business operations. The company recently acquired Pope, a residential watering products company, which 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.
In addition, Griffon Corporation has successfully repriced its Secured Term Loan B facility, estimated to save the company approximately $1.8 million in annual cash interest expenses. The company has also reported a strong start to fiscal year 2024, surpassing market expectations with robust revenue and EBITDA figures. Griffon raised its full-year revenue guidance to $2.65 billion, with a $30 million increase in segment adjusted EBITDA forecasted at $555 million. These recent developments indicate the company's commitment to enhancing shareholder value and its strategic plan for growth.
InvestingPro Insights
Amidst the recent insider transactions at Griffon Corporation (NYSE:GFF), the InvestingPro platform offers key metrics and insights that could provide a broader context for investors. As of the last twelve months leading up to Q3 2024, Griffon Corporation boasts a market capitalization of $3.43 billion, with a Price/Earnings (P/E) ratio of 17.95, which adjusts to a more attractive 15.59 when considering near-term earnings growth.
The company's robust financial health is further underscored by a Gross Profit Margin of 39.79%, reflecting efficient operations and a solid grip on cost management. Furthermore, Griffon Corporation's Operating Income Margin stands at an impressive 15.97%, indicating strong profitability relative to its revenues.
InvestingPro Tips highlight several positive indicators for Griffon Corporation. Notably, the management's confidence is evident through aggressive share buybacks, a practice that often signals a belief in the company's undervaluation. Additionally, the company has not only maintained but also raised its dividend for the past 14 consecutive years, showcasing a commitment to returning value to shareholders. With 4 consecutive years of dividend increases and a high shareholder yield, these factors may be particularly appealing to income-focused investors.
For those seeking more comprehensive analysis and additional insights, InvestingPro offers a total of 14 tips for Griffon Corporation, available at https://www.investing.com/pro/GFF. These tips delve into aspects such as earnings revisions, trading multiples, and profitability forecasts, providing a well-rounded view of the company's investment potential.
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