Griffon Corporation [NYSE: GFF] stock went on an upward path that rose over 0.96% on Friday, amounting to a one-week price decrease of less than -7.33%. The company report on August 13, 2020 that Griffon Corporation Announces Pricing of Offering of Common Stock.
Griffon Corporation (“Griffon” or the “Company”) (NYSE:GFF) announced today the pricing of an underwritten offering of 8,000,000 shares of common stock at a public offering price of $21.50 per share. In addition, Griffon and a selling stockholder of Griffon have granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of common stock.
Griffon expects to use the net proceeds received by it from this offering (i) for working capital and general corporate purposes, including to expand its current business through acquisitions of, or investments in, other businesses or products, and (ii) to temporarily repay a portion of its outstanding borrowings under its revolving credit facility (which will be subject to re-borrowing), and for the payment of related fees and expenses. Griffon will not receive any proceeds from the sale of common stock by the selling stockholder. The offering is expected to close on August 18, 2020, subject to the satisfaction of customary closing conditions.
Over the last 12 months, GFF stock rose by 24.89%. The one-year Griffon Corporation stock forecast points to a potential upside of 26.23. The average equity rating for GFF stock is currently 1.30, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $1.04 billion, with 41.71 million shares outstanding and 36.61 million shares in the current float. Compared to the average trading volume of 200.36K shares, GFF stock reached a trading volume of 3954005 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Griffon Corporation [GFF]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GFF shares is $30.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GFF stock is a recommendation set at 1.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Robert W. Baird have made an estimate for Griffon Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on January 14, 2020. While these analysts kept the previous recommendation, JP Morgan raised their target price to Underweight. The new note on the price target was released on October 30, 2018, representing the official price target for Griffon Corporation stock. Previously, the target price had yet another raise to $18, while Goldman analysts kept a Neutral rating on GFF stock.
The Average True Range (ATR) for Griffon Corporation is set at 1.18, with the Price to Sales ratio for GFF stock in the period of the last 12 months amounting to 0.45. The Price to Book ratio for the last quarter was 1.82, with the Price to Cash per share for the same quarter was set at 1.53. Price to Free Cash Flow for GFF in the course of the last twelve months was 11.90 with Quick ratio for the last quarter at 1.30.
GFF Stock Performance Analysis:
Griffon Corporation [GFF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.33. With this latest performance, GFF shares gained by 17.34% in over the last four-week period, additionally plugging by 7.69% over the last 6 months – not to mention a rise of 24.89% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GFF stock in for the last two-week period is set at 55.16, with the RSI for the last a single of trading hit 51.46, and the three-weeks RSI is set at 57.29 for Griffon Corporation [GFF]. The present Moving Average for the last 50 days of trading for this stock 19.59, while it was recorded at 22.92 for the last single week of trading, and 18.54 for the last 200 days.
Insight into Griffon Corporation Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Griffon Corporation [GFF] shares currently have an operating margin of +5.96 and a Gross Margin at +26.00. Griffon Corporation’s Net Margin is presently recorded at +2.07.
Return on Total Capital for GFF is now 8.29, given the latest momentum, and Return on Invested Capital for the company is 2.89. Return on Equity for this stock inclined to 9.58, with Return on Assets sitting at 2.19. When it comes to the capital structure of this company, Griffon Corporation [GFF] has a Total Debt to Total Equity ratio set at 231.13. Additionally, GFF Total Debt to Total Capital is recorded at 69.80, with Total Debt to Total Assets ending up at 53.22. Long-Term Debt to Equity for the company is recorded at 228.93, with the Long-Term Debt to Total Capital now at 69.14.
Reflecting on the efficiency of the workforce at the company, Griffon Corporation [GFF] managed to generate an average of $6,250 per employee. Receivables Turnover for the company is 5.72 with a Total Asset Turnover recorded at a value of 1.06.Griffon Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 2.30.
GFF Stock EPS
With the latest financial reports released by the company, Griffon Corporation posted 0.4/share EPS, while the average EPS was predicted by analysts to be reported at 0.33/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 21.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GFF. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Griffon Corporation go to 20.41%.
Griffon Corporation [GFF] Insider Position Details
There are presently around $739 million, or 71.70% of GFF stock, in the hands of institutional investors. The top three institutional holders of GFF stocks are: BLACKROCK INC. with ownership of 5,971,247, which is approximately 0.417% of the company’s market cap and around 0.20% of the total institutional ownership; GAMCO INVESTORS, INC. ET AL, holding 4,387,606 shares of the stock with an approximate value of $97.1 million in GFF stocks shares; and VANGUARD GROUP INC, currently with $92.93 million in GFF stock with ownership of nearly -1.232% of the company’s market capitalization.
Positions in Griffon Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 58 institutional holders increased their position in Griffon Corporation [NYSE:GFF] by around 1,371,226 shares. Additionally, 61 investors decreased positions by around 1,573,275 shares, while 32 investors held positions by with 30,459,770 shares. The mentioned changes placed institutional holdings at 33,404,271 shares, according to the latest SEC report filing. GFF stock had 9 new institutional investments in for a total of 461,312 shares, while 22 institutional investors sold positions of 487,888 shares during the same period.