According to a recent SEC filing, Robert F. Mehmel, President and Chief Operating Officer of Griffon Corporation (NYSE:), has sold a total of $621,045 worth of the company's common stock. The transactions took place on September 19 and 20, with sales prices ranging from $70.00 to $70.385 per share.
On the first day, Mehmel sold 7,663 shares at a weighted average price of $70.02, while on the following day he disposed of 1,205 shares for an average price of $70.11. The sales were executed in multiple transactions, with share prices varying within stated ranges. The SEC filing included footnotes indicating that the reported prices were weighted averages and that the exact number of shares sold at each price within the range would be provided upon request.
Following these transactions, Mehmel continues to hold a significant amount of Griffon Corporation stock. The exact number of shares Mehmel owned following the sales was 754,046 shares held directly. In addition, there are 3,991 shares held indirectly by the ESOP.
Insider transactions are often closely followed by investors as they can provide insight into executives' confidence in the company's future performance. The sale of a significant amount of stock by a high-ranking executive such as Mehmel can be of particular interest to the market.
Griffon Corporation, headquartered in New York, operates in the manufacturing sector and specializes in metal doors, frames, moldings and accessories. The company's stock is listed on the New York Stock Exchange under the symbol GFF.
In other recent news, The Toro Company (NYSE:) has sold its Pope Products division to The AMES Company, a subsidiary of Griffon Corporation. The divestiture is part of Toro’s strategic plan to focus on sectors with profitable growth potential. The sale is not expected to significantly impact Toro’s fiscal 2024 results, as the company has already factored this transaction into its forecasts.
Griffon Corporation has made significant progress in its business operations. The company recently acquired Pope, a residential irrigation products company, which is expected to generate an additional $25 million in annual revenue and positively impact Griffon's earnings during the first full year of ownership.
Additionally, Griffon Corporation has successfully repriced its mortgage-backed credit facility B, which is estimated to save the Company approximately $1.8 million in annual cash interest expense. The Company also reported a strong start to fiscal 2024, exceeding market expectations with strong revenue and EBITDA figures. Griffon raised its full-year revenue guidance to $2.65 billion, with a $30 million increase in segment-adjusted EBITDA expected at $555 million. These recent developments indicate the Company’s commitment to enhancing shareholder value and its strategic growth plan.
InvestingPro Insights
Amidst the recent insider transactions in Griffon Corporation (NYSE:GFF), the InvestingPro platform offers key metrics and insights that could provide broader context for investors. In the trailing twelve months leading up to the third quarter of 2024, Griffon Corporation has a market capitalization of $3.43 Billion, with a Price to Earnings (P/E) ratio of 17.95, which adjusts to a more attractive 15.59 when considering near-term earnings growth.
The company’s strong financial health is underlined by a gross profit margin of 39.79%, reflecting efficient operations and sound cost management control. Furthermore, Griffon Corporation’s operating profit margin stands at an impressive 15.97%, indicating strong profitability relative to its revenues.
InvestingPro's tips highlight several positive indicators for Griffon Corporation. In particular, management's confidence is evident in aggressive share buybacks, a practice that typically indicates that the company is believed to be undervalued. Furthermore, the company has not only maintained, but also increased, its dividend for the past 14 consecutive years, demonstrating its commitment to returning value to shareholders. With 4 consecutive years of dividend increases and a high yield for shareholders, these factors may be especially attractive to income-focused investors.
For those seeking more in-depth analysis and additional insights, InvestingPro offers a total of 14 tips on Griffon Corporation, available at https://www.investing.com/pro/GFF. These tips delve into aspects such as earnings revisions, trading multiples and profitability forecasts, providing a comprehensive view of the company's investment potential.
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