Griffon (NYSE:GFF) Shares Gap Up After Strong Earnings

Griffon Co. (NYSE:GFF)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $44.34, but opened at $45.47. Griffon shares last traded at $45.63, with a volume of 42,162 shares.

The conglomerate reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.24. Griffon had a negative net margin of 13.85% and a positive return on equity of 54.04%. The business had revenue of $641.40 million during the quarter, compared to analysts’ expectations of $653.83 million. During the same quarter in the prior year, the company earned $1.09 EPS. The firm’s quarterly revenue was down 9.5% on a year-over-year basis.

Griffon Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 14th. Investors of record on Tuesday, November 28th will be given a $0.15 dividend. This is a boost from Griffon’s previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a yield of 1.33%. The ex-dividend date of this dividend is Monday, November 27th. Griffon’s payout ratio is currently -6.77%.

Griffon declared that its board has authorized a share repurchase program on Wednesday, November 15th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the conglomerate to buy up to 8.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research analysts recently commented on GFF shares. Raymond James increased their price target on Griffon from $55.00 to $60.00 and gave the company a “strong-buy” rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Griffon in a research report on Friday, October 27th. They issued a “buy” rating and a $65.00 price objective for the company. Finally, StockNews.com cut shares of Griffon from a “strong-buy” rating to a “buy” rating in a report on Friday, October 27th.

Institutional Trading of Griffon

Hedge funds have recently added to or reduced their stakes in the company. Cerity Partners LLC bought a new position in shares of Griffon in the 1st quarter valued at $478,000. Voss Capital LLC lifted its holdings in shares of Griffon by 11.7% in the first quarter. Voss Capital LLC now owns 3,233,852 shares of the conglomerate’s stock worth $103,516,000 after acquiring an additional 338,726 shares during the last quarter. AdvisorShares Investments LLC acquired a new stake in shares of Griffon in the 1st quarter valued at approximately $408,000. Los Angeles Capital Management LLC bought a new stake in shares of Griffon during the 2nd quarter valued at approximately $485,000. Finally, Truist Financial Corp bought a new stake in shares of Griffon during the 2nd quarter valued at approximately $227,000. 73.88% of the stock is owned by institutional investors and hedge funds.

Griffon Stock Performance

The firm has a market capitalization of $2.46 billion, a price-to-earnings ratio of -6.09, a PEG ratio of 1.34 and a beta of 1.51. The company has a current ratio of 2.96, a quick ratio of 1.51 and a debt-to-equity ratio of 4.58. The stock’s 50-day moving average is $40.53 and its 200-day moving average is $38.83.

Griffon Company Profile

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. Its Consumer and Professional Products segment manufactures and markets long-handled tools and landscaping products for homeowners and professionals; wood and wire closet organization, general living storage, and wire garage storage products to home center retail chains, mass merchandisers, and direct-to builder professional installers; wheelbarrows and lawn carts; snow, striking, and hand tools; planters and lawn accessories; garden hoses; and pruners, loppers, shears, and other tools, as well as cleaning products for professional, home, and industrial use.