Griffon Corp (NYSE:GFF) has reported a significant stock sale by Chairman of the Board and CEO Ronald J. Kramer, according to the latest SEC filings. Kramer sold a total of 18,632 shares of the company's common stock across three separate transactions, with the combined sales amounting to over $1.3 million.
The transactions took place over a span of several days, starting on September 27, 2024, when Kramer sold 13,690 shares at a weighted average price of $70.03, with individual prices ranging from $70.00 to $70.25. On September 30, an additional 3,121 shares were sold at an average price of $70.00, with sales prices varying from $70.00 to $70.01. The final sale occurred on October 1, where Kramer disposed of 1,821 shares at a weighted average price of $70.02, with the prices of the individual transactions ranging from $70.00 to $70.10.
Following these transactions, Kramer's direct ownership in Griffon Corp stands at 2,176,499 shares. Additionally, the SEC filing indicated indirect ownership of 5,018 shares through an ESOP and 40,298 shares by Kramer's spouse and children.
Investors often monitor insider transactions like these for insights into the company's performance and the confidence level of its executives. The sale of over $1.3 million in stock by Griffon Corp's CEO may be of particular interest to current and potential shareholders.
In other recent news, The Toro Company (NYSE:TTC) has sold its Pope Products business to The AMES Company, a subsidiary of Griffon Corporation. This move aligns with Toro's strategy to focus on its core markets including golf, sports fields and grounds, professional contractor, rental, and residential sectors. The sale is not projected to significantly impact Toro's fiscal 2024 results. The company, which operates in over 125 countries, reported net sales of $4.55 billion in fiscal 2023.
Meanwhile, Griffon Corporation, through its subsidiary, AMES, has expanded its Australian market presence by acquiring Pope. This acquisition, which is AMES's seventh in Australia since 2013, is expected to add $25 million in annualized revenue and boost Griffon's earnings within the first year of ownership. This strategic move is seen as a reinforcement of Griffon's global position, particularly in Australia.
Griffon has also reported a strong start to fiscal year 2024, raising its full-year revenue guidance to $2.65 billion, with a $30 million increase in segment adjusted EBITDA forecasted at $555 million. These recent developments highlight the company's commitment to enhancing shareholder value and its strategic growth plan.
InvestingPro Insights
To provide additional context to the recent insider sale by Griffon Corp's CEO Ronald J. Kramer, let's examine some key financial metrics and insights from InvestingPro.
Despite the significant stock sale by the CEO, Griffon Corp (NYSE:GFF) appears to be in a strong financial position. According to InvestingPro data, the company's market capitalization stands at $3.41 billion, with a price-to-earnings (P/E) ratio of 17.76. This P/E ratio suggests that the stock may be reasonably valued relative to its earnings.
An InvestingPro Tip highlights that Griffon has maintained dividend payments for 14 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent dividend history could be reassuring for investors concerned about the insider sale.
Another relevant InvestingPro Tip indicates that Griffon's management has been aggressively buying back shares. This share repurchase program, coupled with the CEO's substantial remaining stake of over 2 million shares, may signal confidence in the company's long-term prospects despite the recent sale.
It's worth noting that Griffon's stock has shown impressive performance, with a one-year price total return of 78.21% as of the latest data. This strong return aligns with another InvestingPro Tip highlighting the company's high return over the last year.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Griffon Corp, providing a deeper understanding of the company's financial health and market position.
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