Insider Decision Making Waves At Graco: Brett Carter Exercises Options, Realizing A Substantial Move

A large exercise of company stock options by Brett Carter, Director at Graco GGG was disclosed in a new SEC filing on February 20, as part of an insider exercise.

What Happened: Carter, Director 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.

During Tuesday's morning session, Graco shares down by 0.85%, currently priced at $87.4. Considering the current price, Carter's 0 shares have a total value of $0.

Discovering Graco: A Closer Look

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 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. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Evaluating Earnings Performance:

• Gross Margin: The company maintains a high gross margin of 52.93%, indicating strong cost management and profitability compared 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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.02.

Valuation Overview:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 29.98 suggests caution, as the stock may be overvalued in the eyes of investors.

• 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): A high EV/EBITDA ratio of 20.9 reflects market recognition of Graco's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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

Unmasking the Significance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

Transaction Codes To Focus On

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.