Griffon Corp President and COO Sells Over $621K in Company Stock

Griffon Corporation’s President and COO, Robert F. Mehmel, has sold shares worth $621,045 in the company, as disclosed in a recent SEC filing. These transactions occurred on September 19 and 20, with share prices fluctuating between $70.00 and $70.385.

On September 19, Mehmel sold 7,663 shares at a weighted average price of $70.02, while on September 20, he sold 1,205 shares for an average price of $70.11. The trades were conducted in multiple transactions, and the SEC filing noted that the reported prices represent weighted averages; detailed pricing was available upon request.

Despite these sales, Mehmel retains a significant stake in Griffon Corporation, owning 754,046 shares directly, along with an additional 3,991 shares held indirectly through an Employee Stock Ownership Plan.

Investor interest is often piqued by insider transactions, as they can be indicative of executives’ confidence in the company’s outlook. Mehmel’s large sale is likely to attract attention from the market.

Griffon Corporation, based in New York, is a manufacturer specializing in products such as metal doors, sashes, frames, molding, and trim. The company’s stock is publicly traded under the ticker symbol GFF.

In other news, The Toro Company has sold its Pope Products division to The AMES Company, a subsidiary of Griffon Corporation. This divestiture aligns with Toro’s strategic focus on areas with potential for profitable growth and is not anticipated to significantly affect its fiscal 2024 results, as the transaction has already been factored into the company’s forecasts.

Conversely, Griffon Corporation has been advancing its business efforts, recently acquiring Pope, a company specializing in residential watering products. This acquisition is projected to contribute an additional $25 million in annual revenue and enhance Griffon’s earnings in its first full year of ownership.

Moreover, Griffon Corporation has successfully repriced its Secured Term Loan B facility, expected to yield approximately $1.8 million in annual savings on cash interest expenses. The company has reported a strong start to fiscal year 2024, exceeding market expectations with impressive revenue and EBITDA figures. Griffon has increased its full-year revenue guidance to $2.65 billion, forecasting a $30 million rise in segment-adjusted EBITDA to $555 million. These developments signal the company’s commitment to increasing shareholder value and pursuing strategic growth.

With regard to financial health, Griffon Corporation has a market capitalization of $3.43 billion and a Price/Earnings (P/E) ratio of 17.95, which improves to 15.59 when considering anticipated earnings growth. The company’s Gross Profit Margin is 39.79%, reflecting efficient operations, while its Operating Income Margin is a robust 15.97%, indicating strong profitability relative to revenue.

Management’s confidence is emphasized by aggressive share buybacks, often a sign of belief in the company’s valuation, and Griffon has consistently raised its dividend for the past 14 years, reaffirming its commitment to providing shareholder returns. With four consecutive years of dividend increases and a solid shareholder yield, these elements are particularly attractive to income-oriented investors.

Overall, these insights collectively illustrate Griffon Corporation’s potential as a compelling investment option.