Notable Insider Move: JODY FERAGEN Takes Part In Options Exercise At Graco

On February 20, it was revealed in an SEC filing that JODY FERAGEN, Board Member at Graco GGG executed a significant exercise of company stock options.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday revealed that FERAGEN, Board Member at Graco in the Industrials sector, exercised stock options for 0 shares of GGG stock. The exercise price of the options was $0.0 per share.

As of Tuesday morning, Graco shares are down by 0.85%, with a current price of $87.4. This implies that FERAGEN's 0 shares have a value of $0.

Get to Know Graco Better

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's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 5.0%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 52.93%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Graco exhibits below-average bottom-line performance 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.

Insights into Valuation Metrics:

• 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: With a relatively high Price to Sales ratio of 6.91 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Graco's EV/EBITDA ratio stands at 20.9, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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The Relevance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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.