Gorman-Rupp $GRC Upgraded to Buy at Sidoti

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GRC stock was upgraded to a Buy rating on February 7, 2022, at Sidoti after the company reported its growing backlog.

Gorman-Rupp upgraded to Buy from Neutral at Sidoti

On February 7, 2022, Sidoti analyst John Franzreb upgraded Gorman-Rupp to Buy from Neutral with a $46 price target. Gorman-Rupp shares are down 18% year to date compared to a 11% drop in the Russell 2000, reflecting a recent earnings disappointment and possibly tempered expectations surrounding infrastructure spending, Franzreb tells investors in a research note. The analyst, who says underlying fundamentals are underappreciated, highlights that the backlog at the close of Q4 was $186M, up 19% sequentially and 65% year over year, the highest in nine years.

Gorman-Rupp Reports Fourth Quarter and Full-Year 2021 Financial Results

On February 4, 2022, the Gorman-Rupp Company (NYSE: GRC) reported financial results for the fourth quarter and year ended December 31, 2021. The company reported Q4 revenue of $94.2M, with Q4 EPS including an unfavorable LIFO impact of 8c per share. The company reported backlog of orders was $186M as of December 31, 2021 compared to $113.1M on December 31, 2020, an increase of 64.4%.

Scott King, President and CEO commented, “Our incoming order trend continues to be very strong while sales during the fourth quarter were somewhat impacted by customer-initiated shipment delays. Our team has continued to do a good job of managing the ongoing global supply chain challenges that the COVID-19 pandemic has caused and, as a result, we have seen minimal disruption. We have passed on price increases to offset inflationary pressures on material costs and wages and have leveraged our SG&A expenses as sales volumes have increased. We enter 2022 with a very healthy backlog and are well positioned to continue to deliver top-line growth. We remain optimistic about the long-term outlook and believe our diverse markets, strong balance sheet, and highly-skilled workforce position us well to continue to deliver shareholder value.”

Fourth Quarter 2021 Highlights

  1. Fourth quarter earnings per share were $0.25 compared to $0.26 per share for the fourth quarter of 2020
  2. 2021 results included an unfavorable LIFO impact of $0.08 per share
  3. Results included non-cash pension settlement charges of $0.01 per share in both 2021 and 2020
  4. Net sales of $94.2 million increased 14.1% compared to the fourth quarter of 2020
  5. Incoming orders of $124.1 million increased 33.0% compared to the fourth quarter of 2020
  6. Backlog of $186.0 million increased 64.4% compared to the same period in 2020

Gorman-Rupp Company Declares Cash Dividend and Announces Date of the Annual Meeting of Shareholders

On January 28, 2022, the Board of Directors of The Gorman-Rupp Company (NYSE: GRC) has declared a quarterly cash dividend of $0.17 per share on the common stock of the Company, payable March 10, 2022, to shareholders of record as of February 15, 2022. This will mark the 288th consecutive quarterly dividend paid by The Gorman-Rupp Company.

📺 US lawmakers approve $1tn in infrastructure spending – BBC News

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📉 GRC Stock Technical Analysis

Grc Stock

The long term trend is neutral, but the short term trend is negative. GRC is an average performer in the Machinery industry, it outperforms 64% of 150 stocks in the same industry. Prices have been falling strongly lately, it is better to avoid new long positions here. Volume is considerably higher in the last couple of days. In combination with the strong move down this is a bad signal. GRC is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so GRC is lagging the market slightly.

There is a support zone ranging from 35.64 to 36.36. This zone is formed by a combination of multiple trend lines in multiple time frames. There is strong support at 34.17 from a horizontal line in the daily time frame.

There is a resistance zone ranging from 39.57 to 40.53. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is also a resistance zone ranging from 42.74 to 42.82. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame.

The technical rating of GRC is bad and it also does not present a quality setup at the moment. GRC stock has a Setup Rating of 2 out of 10. Prices have been extended to the downside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when GRC stock consolidates and has a Setup Rating of 8 or higher.

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