Griffon Corporation (NYSE:) President and Chief Operating Officer Robert F. Mehmel has sold a significant portion of his holdings in the company, according to recently filed documents. The transactions, which took place on Sept. 17 and 18, involved the sale of more than $1.7 million worth of company stock.
The selling spree began on September 17, when Mehmel sold 9,148 shares at an average price of $67.74 and another 2,909 shares at an average price of $68.29. The next day, he continued to reduce his position by selling 7,892 shares at an average price of $67.77, 2,897 shares at an average price of $68.54, and 2,154 shares at an average price of $69.27. The prices of these transactions ranged from a low of $67.74 to a high of $69.27 per share.
Following these transactions, Mehmel's direct stake in Griffon Corp has diminished, although he still holds a considerable amount of shares. The sales were executed at different prices, indicating a series of transactions that probably took place during the trading day.
Griffon Corp, which trades on the New York Stock Exchange under the symbol GFF, is known for its manufacturing of doors, frames, moldings and metal accessories. The company has not made any official statement on the transactions made by Mehmel.
Investors often monitor insider trading activity, such as executive purchases and sales of company stock, as an indicator of the company's management's confidence in the company's future prospects. The recent sales by Griffon Corp's president and COO represent a notable change in his investment position and may be of interest to current and potential shareholders.
In other recent news, The Toro Company (NYSE:) has sold its Pope Products business to The AMES Company, a subsidiary of Griffon Corporation. The divestiture aligns with Toro’s strategic efforts to optimize its portfolio and focus on its core markets. The transaction is not anticipated to materially impact Toro’s fiscal 2024 results. At the same time, Griffon Corporation has seen an expansion in its presence in the Australian market through this acquisition, which is expected to generate an additional $25 million in annualized revenue and positively impact earnings in the first year.
In other developments, Griffon Corporation successfully repriced its mortgage-backed credit facility B, which will save it approximately $1.8 million in annual cash interest expense. The company also raised its full-year revenue guidance to $2.65 billion, with segment adjusted EBITDA expected to increase by $555 million.
These recent developments reflect the strategic focus of both companies on growth and shareholder value. While Toro is refining its business approach, Griffon Corporation is expanding its global presence and improving its financial position.
InvestingPro Insights
Amid news of Griffon Corp (NYSE:GFF) President and COO Robert F. Mehmel selling shares, a closer look at the company via InvestingPro provides some broader financial context. With a market capitalization of $3.34 billion and a price-to-earnings (P/E) ratio of 17.91, Griffon Corp appears to be trading at a valuation that reflects its earnings. Notably, the trailing twelve-month adjusted P/E ratio to Q3 2024 stands at a slightly lower 15.6, suggesting a favorable earnings outlook relative to the stock price.
InvestingPro's advice indicates that the company has a very shareholder-friendly approach, with management aggressively buying back shares and a history of increasing dividends for four consecutive years. This is further underlined by the fact that the company has maintained dividend payments for 14 consecutive years. Furthermore, analysts are forecasting net income growth this year for Griffon Corp, which could be a sign of strong financial health and future prospects.
From a performance perspective, Griffon Corp has delivered a high return over the past year, with an annual total return of 75.6%. This performance is significant considering the investment decisions of insiders like Mehmel. While the dividend yield is modest (0.88%), the company's commitment to shareholder returns is evident.
For investors looking for more detailed analysis and additional insights, there are 13 more InvestingPro tips available at https://www.investing.com/pro/GFF. These tips could provide further clarity on the financial health and investment potential of Griffon Corp, especially in light of recent insider trading activity.
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