KEVIN GILLIGAN At Graco Executes Options Exercise, Realizing $1.05M

Disclosed in a recent SEC filing on July 31, GILLIGAN, Board Member at Graco GGG, made a noteworthy transaction involving the exercise of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that GILLIGAN, Board Member at Graco, a company in the Industrials sector, just exercised stock options worth 18,000 shares of GGG stock with an exercise price of $26.68.

As of Thursday morning, Graco shares are down by 0.0%, with a current price of $85.05. This implies that GILLIGAN's 18,000 shares have a value of $1,050,660.

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.

Graco: Delving into Financials

Negative Revenue Trend: Examining Graco's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -1.14% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 54.38%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Graco's EPS is below the industry average. The company faced challenges with a current EPS of 0.79. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.02.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Graco's P/E ratio of 29.43 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 6.81, Graco's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 20.27 reflects market recognition of Graco's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Navigating the Impact of Insider Transactions on Investments

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.