Options Exercise Activity Initiated By David Thompson At Graco

On February 20, it was revealed in an SEC filing that David Thompson, President at Graco GGG executed a significant exercise of company stock options.

What Happened: Thompson, President at Graco, exercised stock options for 0 shares of GGG stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The exercise price of the options was $0.0 per share.

The latest update on Tuesday morning shows Graco shares down by 0.0%, trading at $88.15. At this price, Thompson's 0 shares are worth $0.

All You Need to Know About Graco

Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2.2 billion in sales in 2023.

Graco: A Financial Overview

Revenue Growth: Graco's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 5.0%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 52.93%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Graco's EPS reflects a decline, falling below the industry average with a current EPS of 0.65.

Debt Management: Graco's debt-to-equity ratio is below the industry average at 0.02, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 29.98, Graco's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.91 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 20.9 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

The Insider's Guide to Important Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Graco's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.