In a recent transaction, Dale D. Johnson, the Chief Commercial Development Officer of Graco Inc . (NYSE:GGG), sold 63,510 shares of the company's common stock. The transaction was executed on March 15, 2024, with the shares sold at a weighted average price of $93.6954, totaling approximately $5.95 million. This sale was part of a series of transactions that ranged in individual sale prices from $93.35 to $94.18.
On the same day, Johnson also acquired 63,510 shares through the exercise of options at a price of $23.8467 per share, adding up to a total transaction value of approximately $1.51 million. The options were part of the company's 2015 Stock Incentive Plan and were exercisable in four equal annual installments, starting one year after the date of the grant.
Following these transactions, Johnson's direct holdings in Graco Inc. have changed to 159,614.6976 shares of common stock. Additionally, it was noted that Johnson has an indirect ownership of 9,254.2099 shares by the Employee Stock Ownership Plan (ESOP), which includes dividends paid under the plan.
Investors and followers of Graco Inc. can request more detailed information about the transactions from the company, as stated in the footnotes of the filing. The executive's transactions are recorded in a Form 4 document filed with the Securities and Exchange Commission, which provides transparency into the trading activities of the company's insiders.
InvestingPro Insights
Graco Inc. (NYSE:GGG) has demonstrated a strong financial position, as evidenced by the company holding more cash than debt on its balance sheet. This could provide the company with the flexibility to navigate market fluctuations and invest in growth opportunities. Moreover, Graco's commitment to shareholder returns remains evident with the company raising its dividend for 18 consecutive years, showcasing a reliable income stream for investors. These two attributes are particularly noteworthy for investors looking for stability and long-term growth.
Assessing the company's valuation metrics, Graco Inc. is trading at an earnings multiple of 31.19, with a slightly adjusted P/E ratio for the last twelve months as of Q4 2023 standing at 31.14. While these figures suggest a high valuation, it's important to consider them in the context of the company's impressive gross profit margins, which were reported at 52.88% for the same period. Additionally, the company's stock generally trades with low price volatility, which could appeal to risk-averse investors.
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