Kevin F. Sullivan, a director at Griffon Corp (NYSE:GFF), recently sold 9,222 shares of the company's common stock. The shares were sold at a price of $75.50 each, amounting to a total transaction value of $696,261. Following this sale, Sullivan holds 41,168 shares in the company. This transaction was reported in a recent SEC filing dated November 18, 2024.
In other recent news, Griffon Corporation has been making headlines with strong fiscal fourth-quarter results and strategic planning. Analysts from Baird and Stephens have both increased their stock price targets for Griffon to $100, maintaining an Outperform and Overweight rating respectively. These adjustments came following Griffon's impressive earnings and revenue performance, coupled with the company's promising fiscal 2025 guidance.
Griffon's fiscal fourth-quarter results exceeded expectations, with a significant expansion in its adjusted EBITDA margin attributed to lower material costs and the successful implementation of a global sourcing strategy. The company's Home & Building Products (HBP) segment demonstrated a steady revenue stream, contributing to a projected $1 billion in free cash flow over the next three years. However, the Consumer and Professional Products (CPP) segment saw a 6% decline in revenue, despite a 44% increase in EBITDA to $73 million.
The company has also repurchased 4.8 million shares and increased its quarterly dividend by 20% to $0.18 per share. Griffon anticipates a consistent revenue of $2.6 billion for fiscal 2025, with adjusted EBITDA expected to range between $575 million and $600 million. These recent developments highlight Griffon's strategic financial planning and its commitment to enhancing profitability and shareholder value.
InvestingPro Insights
While Director Kevin F. Sullivan's recent sale of Griffon Corp (NYSE:GFF) shares might raise eyebrows, a closer look at the company's performance and market position reveals a more nuanced picture. According to InvestingPro data, Griffon's stock has shown remarkable strength, with a 65.26% total return over the past year and a 20.4% return in the last three months. This robust performance aligns with an InvestingPro Tip indicating that GFF is trading near its 52-week high, currently at 98.17% of that peak.
The company's financial health appears solid, with a market capitalization of $3.78 billion and a P/E ratio of 15.89 (adjusted for the last twelve months as of Q4 2024). This relatively modest valuation is particularly interesting given Griffon's strong profitability, as highlighted by another InvestingPro Tip stating that the company has been profitable over the last twelve months.
Investors considering Griffon might also be encouraged by the company's dividend history. An InvestingPro Tip notes that GFF has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. While the current dividend yield stands at 0.95%, the company's consistent payout could be attractive to income-focused investors.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Griffon Corp, providing deeper insights into the company's financial position and market performance.
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