Griffon Co. (NYSE:GFF) Receives Average Rating of “Buy” from Brokerages

Griffon Co. (NYSE:GFF) has been given an average rating of “Buy” by the four ratings firms that are currently covering the stock, MarketBeat Ratings reports. Three research analysts have rated the stock with a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $89.25.

Several equities research analysts have recently commented on GFF shares. StockNews.com raised Griffon from a “buy” rating to a “strong-buy” rating in a report on Saturday, November 23rd. Robert W. Baird raised their target price on shares of Griffon from $92.00 to $100.00 and gave the stock an “outperform” rating in a report on Wednesday, November 20th. Finally, Stephens boosted their price target on shares of Griffon from $85.00 to $100.00 and gave the company an “overweight” rating in a report on Thursday, November 14th.

Griffon Stock Performance

NYSE:GFF opened at $83.51 on Friday. Griffon has a twelve month low of $45.70 and a twelve month high of $86.73. The company has a current ratio of 2.66, a quick ratio of 1.44 and a debt-to-equity ratio of 6.74. The company has a 50-day moving average of $70.03 and a 200-day moving average of $67.43. The firm has a market cap of $3.99 billion, a price-to-earnings ratio of 19.76 and a beta of 1.31.

Griffon (NYSE:GFF) last issued its earnings results on Wednesday, November 13th. The conglomerate reported $1.47 earnings per share for the quarter, topping analysts’ consensus estimates of $1.18 by $0.29. Griffon had a net margin of 8.00% and a return on equity of 108.70%. The firm had revenue of $659.70 million during the quarter, compared to analysts’ expectations of $641.24 million. During the same period last year, the firm posted $1.19 earnings per share. The firm’s revenue for the quarter was up 2.9% compared to the same quarter last year. Analysts forecast that Griffon will post 5.57 earnings per share for the current fiscal year.

Griffon Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Monday, November 25th will be issued a $0.18 dividend. This is an increase from Griffon’s previous quarterly dividend of $0.15. The ex-dividend date is Monday, November 25th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.86%. Griffon’s dividend payout ratio is currently 17.02%.

Griffon declared that its board has approved a stock repurchase plan on Wednesday, November 13th that authorizes the company to buyback $400.00 million in outstanding shares. This buyback authorization authorizes the conglomerate to purchase up to 10.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at Griffon

In related news, Director Kevin F. Sullivan sold 9,222 shares of the company’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $75.50, for a total transaction of $696,261.00. Following the completion of the sale, the director now directly owns 41,168 shares of the company’s stock, valued at approximately $3,108,184. This represents a 18.30 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Ronald J. Kramer sold 241,757 shares of Griffon stock in a transaction on Wednesday, November 13th. The stock was sold at an average price of $75.35, for a total transaction of $18,216,389.95. Following the completion of the transaction, the chief executive officer now owns 1,860,746 shares in the company, valued at $140,207,211.10. This trade represents a 11.50 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 603,517 shares of company stock valued at $42,818,506. Insiders own 16.10% of the company’s stock.

Institutional Investors Weigh In On Griffon

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Raymond James Trust N.A. grew its holdings in Griffon by 5.1% in the 3rd quarter. Raymond James Trust N.A. now owns 3,487 shares of the conglomerate’s stock valued at $244,000 after buying an additional 168 shares during the last quarter. Ritholtz Wealth Management grew its stake in shares of Griffon by 5.0% in the third quarter. Ritholtz Wealth Management now owns 3,913 shares of the conglomerate’s stock worth $274,000 after acquiring an additional 187 shares during the last quarter. Evergreen Capital Management LLC increased its position in Griffon by 5.3% during the second quarter. Evergreen Capital Management LLC now owns 4,011 shares of the conglomerate’s stock worth $256,000 after acquiring an additional 201 shares during the period. SummerHaven Investment Management LLC raised its stake in Griffon by 1.3% during the 2nd quarter. SummerHaven Investment Management LLC now owns 17,753 shares of the conglomerate’s stock valued at $1,134,000 after purchasing an additional 231 shares during the last quarter. Finally, National Bank of Canada FI boosted its holdings in Griffon by 2.2% in the 2nd quarter. National Bank of Canada FI now owns 14,562 shares of the conglomerate’s stock valued at $930,000 after purchasing an additional 311 shares during the period. 73.22% of the stock is owned by institutional investors and hedge funds.

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications.