Graco (NYSE:GGG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Over the past year, Graco’s shares have outperformed the industry. Increasing manufacturing activity in the United States is expected to spur demand for Graco’s products. The company also expects that the previously made acquisitions, favorable foreign currency translation impact and sturdier demand for all major product lines will continue to drive its top- and bottom-line growth trajectory in the quarters ahead.  However, elevated material prices will escalate Graco’s aggregate costs, going forward. Also, acquisition-integration expenses might weigh over near-term margins. The stock looks overvalued compared with the industry in the past year. Over the past 60 days, the Zacks Consensus Estimate for the stock remained unchanged for both 2018 and 2019.”

Several other equities analysts also recently weighed in on the stock. ValuEngine upgraded shares of Graco from a “sell” rating to a “hold” rating in a report on Wednesday, May 2nd. DA Davidson started coverage on shares of Graco in a report on Thursday, April 12th. They issued a “neutral” rating and a $48.00 price target on the stock. Twelve investment analysts have rated the stock with a hold rating and one has given a buy rating to the stock. Graco has an average rating of “Hold” and an average target price of $47.30.

Shares of Graco traded down $0.29, hitting $44.93, on Monday, Marketbeat reports. 19,836 shares of the company traded hands, compared to its average volume of 564,328. The stock has a market cap of $7.58 billion, a P/E ratio of 31.39, a PEG ratio of 2.32 and a beta of 1.14. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.55 and a quick ratio of 1.60. Graco has a 52 week low of $34.89 and a 52 week high of $49.69.

Graco (NYSE:GGG) last released its quarterly earnings data on Wednesday, April 25th. The industrial products company reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.07. The firm had revenue of $406.30 million for the quarter, compared to analysts’ expectations of $369.61 million. Graco had a net margin of 17.99% and a return on equity of 41.12%. The company’s revenue for the quarter was up 19.3% compared to the same quarter last year. During the same quarter last year, the business posted $1.05 earnings per share. equities analysts expect that Graco will post 1.89 EPS for the current year.

In other news, insider Patrick J. Mchale sold 221,670 shares of the stock in a transaction that occurred on Tuesday, May 8th. The stock was sold at an average price of $45.13, for a total transaction of $10,003,967.10. Following the transaction, the insider now owns 453,931 shares in the company, valued at approximately $20,485,906.03. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Eric Etchart sold 15,000 shares of the stock in a transaction that occurred on Tuesday, May 1st. The shares were sold at an average price of $43.83, for a total value of $657,450.00. The disclosure for this sale can be found here. Insiders have sold a total of 347,204 shares of company stock worth $15,838,068 in the last quarter. Insiders own 5.10% of the company’s stock.

Several large investors have recently made changes to their positions in the company. Raymond James Financial Services Advisors Inc. lifted its holdings in Graco by 227.3% in the 4th quarter. Raymond James Financial Services Advisors Inc. now owns 23,599 shares of the industrial products company’s stock valued at $1,067,000 after purchasing an additional 16,388 shares in the last quarter. UBS Asset Management Americas Inc. increased its stake in shares of Graco by 215.6% in the 4th quarter. UBS Asset Management Americas Inc. now owns 247,931 shares of the industrial products company’s stock worth $11,211,000 after acquiring an additional 169,382 shares during the last quarter. First Republic Investment Management Inc. increased its stake in shares of Graco by 188.8% in the 4th quarter. First Republic Investment Management Inc. now owns 15,451 shares of the industrial products company’s stock worth $699,000 after acquiring an additional 10,101 shares during the last quarter. OppenheimerFunds Inc. increased its stake in shares of Graco by 216.6% in the 4th quarter. OppenheimerFunds Inc. now owns 9,939 shares of the industrial products company’s stock worth $449,000 after acquiring an additional 6,800 shares during the last quarter. Finally, Eaton Vance Management increased its stake in shares of Graco by 401.4% in the 4th quarter. Eaton Vance Management now owns 30,960 shares of the industrial products company’s stock worth $1,400,000 after acquiring an additional 24,785 shares during the last quarter. Hedge funds and other institutional investors own 85.94% of the company’s stock.

Graco Company Profile

Graco Inc designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. Its Industrial segment offers proportioning systems that are used to spray polyurethane foam and polyurea coatings; vapor-abrasive blasting equipment; equipment that pumps, meters, mixes, and dispenses sealant, adhesive, and composite materials; and gel coat equipment, chop and wet-out systems, resin transfer molding systems, and applicators.

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Analyst Recommendations for Graco (NYSE:GGG)

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