Graco (NYSE:GGG) Hits New 1-Year Low – Should You Sell?

Graco Inc. (NYSE:GGG) hit a new 52-week low during trading on Friday. The stock traded as low as $67.74 and last traded at $69.2290, with a volume of 5,675,859 shares trading hands. The stock had previously closed at $81.81.

Graco News Summary

Here are the key news stories impacting Graco this week:

• Positive Sentiment: Graco reported record third-quarter sales of approximately $586.4 million, an 8% year-over-year increase. Organic incoming orders also rose 7%, suggesting healthy underlying demand. Graco Reports Record Third Quarter Sales
• Positive Sentiment: Graco’s technology partnership with ABB will license its high-torque Electric Torque Machines technology for data-center cooling towers and heat-rejection systems. The agreement provides exposure to the growing data-center infrastructure market, although its financial contribution is likely longer term. Graco Announces Technology Partnership with ABB
• Neutral Sentiment: Management’s earnings call emphasized continued order growth and the company’s longer-term opportunities, but investors will likely want evidence that higher sales can translate into improved earnings and margins. Graco Q3 2026 Earnings Call Transcript
• Negative Sentiment: Quarterly EPS was $0.81, below the $0.83 consensus estimate, while revenue of $586.4 million also missed analyst expectations of roughly $590 million. Graco Quarterly Earnings Report
• Negative Sentiment: Margin compression was the primary concern: operating earnings declined 10% year over year to $148.1 million, while reported results showed lower net income and diluted EPS compared with the prior-year quarter. Positive revenue growth therefore did not produce comparable profit growth. Graco Stock Drops as Q3 Results Spotlight Margin Compression
• Negative Sentiment: The earnings and revenue misses, combined with softer operating profitability, prompted a sharp decline in the stock as investors reassessed near-term earnings momentum. Operating cash flow also decreased year over year, adding to concerns about the quality of the quarter. Graco Shares Plunge as Earnings and Revenue Miss Estimates

Analyst Ratings Changes

Several brokerages have weighed in on GGG. Weiss Ratings upgraded shares of Graco from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 4th. DA Davidson reiterated a “neutral” rating and set a $85.00 price target on shares of Graco in a research report on Monday, July 27th. Wolfe Research lowered Graco from an “outperform” rating to a “peer perform” rating in a research note on Thursday, July 9th. Robert W. Baird set a $94.00 price target on Graco in a report on Friday, July 24th. Finally, Royal Bank Of Canada dropped their price objective on Graco from $96.00 to $95.00 and set an “outperform” rating for the company in a research note on Wednesday, October 14th. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $94.75.

Graco Trading Down 15.4%

The firm has a 50 day moving average price of $78.52 and a 200-day moving average price of $78.41. The firm has a market cap of $11.21 billion, a price-to-earnings ratio of 21.77, a P/E/G ratio of 2.54 and a beta of 0.89.

Graco (NYSE:GGG) last issued its quarterly earnings data on Wednesday, October 21st. The industrial products company reported $0.81 EPS for the quarter, missing analysts’ consensus estimates of $0.83 by ($0.02). The business had revenue of $586.39 million during the quarter, compared to analyst estimates of $590.17 million. Graco had a net margin of 22.40% and a return on equity of 19.81%. Graco’s revenue was up 7.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.73 earnings per share. As a group, equities analysts expect that Graco Inc. will post 3.22 earnings per share for the current fiscal year.

Graco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 4th. Shareholders of record on Monday, October 19th will be given a dividend of $0.2950 per share. The ex-dividend date is Monday, October 19th. This represents a $1.18 dividend on an annualized basis and a yield of 1.7%. Graco’s payout ratio is presently 37.11%.

Institutional Trading of Graco

Several institutional investors and hedge funds have recently modified their holdings of the business. Root Financial Partners LLC grew its position in shares of Graco by 43.2% in the first quarter. Root Financial Partners LLC now owns 504 shares of the industrial products company’s stock valued at $43,000 after purchasing an additional 152 shares during the last quarter. Essential Partners LLC raised its holdings in Graco by 78.6% in the 1st quarter. Essential Partners LLC now owns 359 shares of the industrial products company’s stock valued at $30,000 after acquiring an additional 158 shares during the last quarter. CWS Financial Advisors LLC lifted its position in Graco by 2.8% during the first quarter. CWS Financial Advisors LLC now owns 7,022 shares of the industrial products company’s stock worth $594,000 after buying an additional 193 shares during the period. Fulton Bank N.A. boosted its holdings in shares of Graco by 5.0% in the 2nd quarter. Fulton Bank N.A. now owns 5,270 shares of the industrial products company’s stock valued at $398,000 after purchasing an additional 249 shares during the last quarter. Finally, IFP Advisors Inc raised its stake in shares of Graco by 30.9% in the 3rd quarter. IFP Advisors Inc now owns 1,056 shares of the industrial products company’s stock valued at $81,000 after acquiring an additional 249 shares during the period. Hedge funds and other institutional investors own 93.88% of the company’s stock.

Graco Company Profile

Graco Inc is a global manufacturer of equipment used to move, measure, control, dispense and apply fluids and other materials. Its products are used in industrial, commercial and residential applications involving paints, coatings, sealants, adhesives, lubricants, chemicals and other fluids.

The company’s product portfolio includes pumps, valves, meters, regulators, fluid-management systems, lubrication equipment, spray-applied coating and finishing systems, sealant and adhesive equipment, and contractor-oriented painting and texture application tools.