William Blair analyst Ross Sparenblek has maintained their neutral stance on GGG stock, giving a Hold rating today.
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Ross Sparenblek has given his Hold rating due to a combination of factors impacting Graco’s performance. The company’s second-quarter results were below expectations, primarily due to challenges in the North American contractor segment, which faced difficulties from a softer construction market and reduced contractor investment. Additionally, Graco’s margins were affected by approximately $4 million in tariff costs, presenting a notable headwind to earnings per share.
Despite these challenges, Graco’s management has maintained its full-year guidance for 2025, anticipating low-single-digit organic revenue growth. While the second-quarter results were weaker, stable order rates and positive momentum in certain business segments, such as powder coating and semiconductor markets, provide some optimism. However, the uncertainties related to tariffs and residential activity continue to warrant a cautious outlook, justifying the Hold rating.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GGG in relation to earlier this year.