In recent trading activity, Seth L. Kaplan, Senior Vice President, General Counsel, and Secretary of Griffon Corp (NYSE:GFF), sold a significant portion of his holdings in the company. Over the course of two days, Kaplan disposed of a total of 35,274 shares of common stock at a consistent price of $70.0 per share, resulting in a total sale value of $2,469,180.
The transactions, which took place on September 18 and September 19, were reported in a Form 4 filing with the Securities and Exchange Commission. On the first day, Kaplan sold 4,844 shares, and on the following day, he sold an additional 30,430 shares. Following these sales, Kaplan's direct ownership in Griffon Corp stands at 168,141 shares.
It is also noted that Kaplan has an indirect ownership of 4,555 shares through the Employee Stock Ownership Plan (ESOP), as indicated by a footnote in the filing. This reflects allocations that have occurred since Kaplan's last ownership report.
Investors often watch insider transactions as they provide insights into how executives perceive the value of the company stock. In the case of Griffon Corp, the recent sales by a high-ranking executive might draw attention from the market.
Griffon Corp, listed on the New York Stock Exchange, is known for its manufacturing of metal doors, sash, frames, molding, and trim. The company's stock performance and insider transactions are closely monitored by investors seeking to understand the company's financial health and future prospects.
In other recent news, The Toro Company (NYSE:TTC) has divested its Pope Products business to The AMES Company, a subsidiary of Griffon Corporation. This strategic move aims to streamline Toro's portfolio and focus on areas with potential for profitable growth. The divestiture is not expected to significantly impact Toro's fiscal 2024 results, with the company having previously accounted for this transaction in its forecast.
Simultaneously, Griffon Corporation has been making significant strides, not only through this acquisition, which is expected to bring in an additional $25 million in annualized revenue, but also in its financial performance. The company reported a strong start to fiscal 2024, surpassing market expectations with robust revenue and EBITDA figures in the Home and Building Products segment. Griffon also raised its full-year revenue guidance to $2.65 billion, with a $30 million increase in segment adjusted EBITDA forecasted at $555 million.
Furthermore, Griffon Corporation has successfully repriced its Secured Term Loan B facility, due in January 2029. The repricing, administered by Bank of America (NYSE:BAC), N.A., is expected to save Griffon approximately $1.8 million in annual cash interest expenses. This development reflects Griffon's strong financial position and operational performance. These are just a few of the recent developments for both companies.
InvestingPro Insights
Amidst the insider trading activity at Griffon Corp (NYSE:GFF), investors may be interested in the broader financial landscape of the company. With a market capitalization of approximately $3.37 billion, Griffon Corp's financial metrics provide a snapshot of its current valuation and performance.
The company's Price/Earnings (P/E) ratio stands at 17.84, which aligns with the industry's average, suggesting a fair valuation relative to its earnings. However, when considering the adjusted P/E ratio for the last twelve months as of Q3 2024, the figure is slightly lower at 15.13, indicating potential undervaluation against future earnings. This is supported by an attractive PEG ratio of 0.12 for the same period, hinting at a favorable growth trajectory relative to its earnings growth rate.
Griffon Corp's revenue for the last twelve months as of Q3 2024 was recorded at $2.605 billion, though it experienced a slight decline of 5.36% in revenue growth. Despite this, the company maintains a strong gross profit margin of 39.79%, reflecting efficient cost management and the ability to retain a significant portion of its revenue as gross profit.
Two notable InvestingPro Tips for Griffon Corp include management's aggressive share buybacks and the fact that the company has raised its dividend for four consecutive years, signaling confidence from the leadership in the company's financial stability and commitment to returning value to shareholders. Moreover, the company has maintained dividend payments for 14 consecutive years, which is a testament to its financial resilience and consistent performance. For investors looking for more insights, there are 14 additional InvestingPro Tips available at https://www.investing.com/pro/GFF.
These financial metrics and InvestingPro Tips may help investors to form a more comprehensive view of Griffon Corp's valuation and performance as they assess the implications of insider transactions and consider the company's prospects.
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