Griffon Corporation (GFF) And Hyatt Hotels Corporation (H) Among Headliners

Griffon Corporation (NYSE: GFF) shares are 15.79% up in the year-to-date (YTD) period and have moved 3.56% or $0.81 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +157.27% lower. Comparatively, the stock is -14.49% down YTD and 35.68% over the trailing 3-month period. If we look at the shorter duration, its week performance is 4.16% and 16.48% over the month.

Analyst Recommendations

On October 30, 2018, JP Morgan recommended the GFF stock is a Underweight, while earlier, Robert W. Baird had Upgrade the stock as a Outperform on January 14, 2020. 3 analysts offering the recommendations for the stock have a consensus rating of 1.30 to suggest that the GFF stock is a “Strong Buy. 0 of the 3 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $23.54 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $30.00. The forecasts give the Griffon Corporation stock a price target range of $32.00 on the higher side while at least one analyst think the stock could plunge to a low of $28.00. The two limits represent an upside potential of 26.44% or 15.93%.

Earnings Forecast

Analysts estimate the earnings to increase 156.50% in the current quarter to $0.37, down from the $0.4 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $1.54, up 5.80% from $1.08 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.24 and $0.43. Wall Street estimates earnings per share to be at an average of $1.59 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 21 over the last 12 months, while SEC filings reveal that there have been 9 insider sales over the same period. Insiders have purchases 439,504 shares while those sold by company executives and officers stand at 816,394. The last 3 months have seen insiders trade a total of 4,296 and 500,000 in purchases and sales respectively.

BROSIG THOMAS, a Director at the company, bought 4,075 shares worth $48961.0 at $12.02 per share on Mar 27. The Chairman of the Board and CEO had earlier sold another 500,000 GFF shares valued at $10.75 million on Aug 21. The shares were sold at $21.50 per share. Sullivan Kevin F (Director) bought 8,500 shares at $11.60 per share on Mar 26 for a total of $98583.0 while Sullivan Kevin F, (Director) bought 5,000 shares on Feb 06 for $99100.0 with each share fetching $19.82.

Hyatt Hotels Corporation (NYSE:H), on the other hand, is trading around $54.68 with a market cap of $5.45B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $51.06 and spell out a less modest performance – a -7.09% return. Some analysts are even forecasting -$4.26 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Hyatt Hotels Corporation (H) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

H’s operating margin was negative on the trailing 12 months basis, remaining steady at -6.10%, while the operating expenses over the recent quarter were at $174.0 million. This represented a 30.4% of the company’s total revenues which amounted $250.0 million. With this in place, we can see that the company’s diluted EPS declined -$2.33 on the year-over-year period, growing to $0.80 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $8.58 billion from $8.3 billion over the previous quarter. Short term investments amounted to $65.0 million while total current assets were at $1.94 billion. The cash flow from operating activities totaled -$330.0 million, significantly lower than the $179.0 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$418.0 million.

Insider activity

Insiders have transacted a total of 100 times at Hyatt Hotels Corporation over the last 6 months, with insider purchases undertaken 54 times and accounting for 351,023 shares. Insider sales totaled 187,175 shares over the same period, with these deals completed in 46 transactions. Looking at these numbers, we realize that net purchases over that period are 8.0 shares. Insiders now hold a total of 2.81M shares after the latest sales, with 14.10% net shares purchased.

Major holders

Insiders own 1.50% of the company shares, while shares held by institutions stand at 98.70% with a share float percentage of 36.85M. Investors are also buoyed by the number of investors in a company, with Hyatt Hotels Corporation having a total of 285 institutions that hold shares in the company. The top two institutional holders are BAMCO Inc. with over 4.82 million shares worth more than $242.64 million. As of Jun 29, 2020, BAMCO Inc. held 12.55% of shares outstanding.

The other major institutional holder is Melvin Capital Management LP, with the investment firm holding over 3.52 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $177.27 million and represent 9.17% of shares outstanding.