Form 4: Graco Director Boosts Stake with Stock Compensation

Graco Inc. Director Brett C. Carter acquired 76 shares of common stock on January 1, 2026, as part of his quarterly retainer fees, increasing his total beneficial ownership to 4,055.083 shares.

Summary

• Graco Inc. Director Brett C. Carter acquired 76 shares of common stock.
• The transaction occurred on January 1, 2026, at a price of $81.97 per share.
• These shares were received in lieu of quarterly retainer fees.
• Following this acquisition, Mr. Carter beneficially owns a total of 4,055.083 shares of Graco Inc. common stock.
• The total beneficial ownership includes shares acquired through the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP), which are exempt under Rule 16a-11.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as a director increasing their stake, even through compensation, generally aligns interests with shareholders. The transaction is routine and pre-planned, so it's not a strong signal, but it's not negative.

Positives

• Director Brett C. Carter increased his direct ownership in Graco Inc. by acquiring 76 shares.
• Receiving shares as compensation aligns the director's interests more closely with those of shareholders.
• The transaction was executed under a Rule 10b5-1(c) plan, indicating a pre-planned, non-discretionary acquisition.

Negatives

• No specific negative aspects are identified in this routine insider transaction report.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future outlook.

Industry Context

Insider transactions, such as directors receiving stock as compensation, are common across industries. While this specific transaction is small, it generally signals alignment of management interests with shareholders, a practice often viewed favorably by the market. The use of a Rule 10b5-1 plan indicates a pre-arranged transaction, reducing concerns about opportunistic timing.

Comparison to Industry Standards

• This type of transaction, where directors receive equity in lieu of cash for retainer fees, is a standard practice in corporate governance across many publicly traded companies.
• It is a common mechanism to align the interests of directors with long-term shareholder value.
• For example, many S&P 500 companies, including peers in the industrial manufacturing sector like Illinois Tool Works (ITW) or Parker-Hannifin (PH), utilize similar equity compensation structures for their non-employee directors.
• The specific amount of shares and the value are proportional to Graco Inc.'s size and compensation policies, which are generally in line with industry norms for companies of similar market capitalization and operational scope.

Related Party Transactions

• Director Brett C. Carter received 76 shares of Graco Inc. common stock as compensation for his quarterly retainer fees, which constitutes a transaction between the company and a related party (a director).

Stakeholder Impact

• Shareholders may view the director's increased equity stake as a positive signal, indicating alignment of interests between management and shareholders.
• Employees are not directly impacted by this specific insider transaction.
• Customers, suppliers, and creditors are not directly impacted by this specific insider transaction.

Next Steps

• This filing does not mention any specific future actions, events, or milestones related to the company's operations or strategy.

Key Dates

Keywords

Graco Inc., GGG, Form 4, Insider Trading, Director Stock Acquisition, Beneficial Ownership, Stock Compensation, Rule 10b5-1, Dividend Reinvestment Plan