Shares of Gorman-Rupp (NYSE: GRC) faced a downgrade from Wall Street Zen, shifting from a buy rating to a hold rating, as announced in a report released on Sunday morning. This decision comes amidst mixed evaluations from market experts regarding the company’s stock performance. In contrast, Weiss Ratings reaffirmed a “buy (b)” rating on October 8, indicating that not all analysts share the same outlook on the industrial products company.
Analysts’ opinions on Gorman-Rupp’s stock remain varied. Currently, one analyst maintains a buy rating, contributing to an average rating of “Buy,” according to data from MarketBeat.com.
Recent Earnings Report and Dividend Announcement
Gorman-Rupp disclosed its latest earnings results on October 24, revealing earnings per share of $0.52 for the quarter. This figure fell short of the consensus estimate of $0.55 by $0.03. The company reported revenue of $172.83 million, which also did not meet analysts’ expectations of $174.61 million. Despite these results, Gorman-Rupp achieved a return on equity of 13.49% and a net margin of 7.41%. Analysts anticipate that Gorman-Rupp will post an EPS of $1.98 for the current fiscal year.
In a positive development, Gorman-Rupp announced a quarterly dividend of $0.19 per share, set to be paid on December 10. Shareholders of record as of November 14 will receive this dividend, which results in an annualized dividend of $0.76 and a yield of 1.7%. This marks an increase from the previous quarterly dividend of the same amount. The ex-dividend date is also November 14, and the company’s dividend payout ratio stands at 39.79%.
Institutional Trading Activity
Several large institutional investors have recently adjusted their stakes in Gorman-Rupp. Gabelli Funds LLC increased its holdings by 0.9% during the second quarter. They now own 773,664 shares valued at approximately $28.41 million, after acquiring an additional 7,264 shares.
Additionally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake by 7.5% in the first quarter, now holding 756,083 shares worth around $26.54 million after purchasing an extra 53,006 shares. Gamco Investors INC. ET AL also increased its stake by 6.9% in the second quarter, bringing their total to 592,988 shares valued at approximately $21.78 million.
Other notable investors include Geode Capital Management LLC, which raised its stake by 3.0% during the same quarter, and Cooke & Bieler LP, which increased its stake by 8.5% in the first quarter. Institutional investors currently own 59.26% of Gorman-Rupp’s stock.
Gorman-Rupp is a prominent player in the design, manufacture, and sale of pumps and pump systems, operating both in the United States and internationally. The company’s diverse product range includes self-priming centrifugal pumps, rotary gear pumps, and more, catering to various industrial needs. As Gorman-Rupp navigates through these recent developments, its performance will be closely monitored by investors and analysts alike.
