Notable Insider Move: Kathryn Schoenrock Takes Part In Options Exercise At Graco

A substantial insider activity was disclosed on February 20, as Schoenrock, EVP at Graco GGG, reported the exercise of a large sell of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Schoenrock, EVP at Graco, a company in the Industrials sector, just exercised stock options worth 0 shares of GGG stock with an exercise price of $0.0.

The Tuesday morning update indicates Graco shares down by 0.0%, currently priced at $88.15. At this value, Schoenrock's 0 shares are worth $0.

Unveiling the Story Behind 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.

Financial Insights: Graco

Revenue Growth: Graco displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 5.0%. This indicates a notable 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.

Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 52.93%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Graco's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.65.

Debt Management: With a below-average debt-to-equity ratio of 0.02, Graco adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 29.98 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 6.91 is above industry norms, reflecting an elevated valuation for Graco's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 20.9, Graco demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Exploring the Significance of Insider Trading

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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.