Form 4: Graco Director Brett Carter Increases Stake Through Equity Compensation

Graco Inc. Director Brett C. Carter acquired 72 shares of common stock valued at $85.97 per share, increasing his total beneficial ownership to 3,880.111 shares.

Summary

• Graco Inc. Director Brett C. Carter acquired 72 shares of Graco common stock on July 1, 2025.
• The shares were acquired at a price of $85.97 per share.
• This acquisition was made in lieu of quarterly retainer fees, indicating equity-based compensation.
• The reported beneficial ownership of common stock by Mr. Carter following this transaction is 3,880.111 shares.
• The total shares beneficially owned also include shares acquired under the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP), which are exempt under Rule 16a-11.

Sentiment

Score: 7

Explanation: The acquisition of shares by a director, particularly as part of compensation, is a positive indicator of insider confidence and alignment with shareholder interests, contributing to a moderately positive sentiment.

Positives

• A director's acquisition of shares, especially as part of compensation, aligns management's interests with those of shareholders, signaling confidence in the company's future performance.
• The use of equity for retainer fees demonstrates a commitment to long-term value creation and prudent cash management by the company.

Future Outlook

No specific forward-looking statements or guidance are provided beyond the transaction details.

Industry Context

Insider buying, such as a director acquiring shares, is generally viewed positively by the market as it indicates confidence from those with intimate knowledge of the company's operations and prospects. This transaction reflects a common practice of compensating directors with equity to further align their interests with long-term shareholder value.

Comparison to Industry Standards

• The practice of compensating directors with company stock in lieu of cash retainer fees is a common corporate governance practice across various industries, including manufacturing and industrial sectors where Graco operates.
• This method aligns with best practices for executive and director compensation, similar to companies like Illinois Tool Works (ITW) or Dover Corporation (DOV), which also utilize equity-based compensation to foster long-term commitment and performance alignment.

Related Party Transactions

• Director Brett C. Carter, a related party, acquired 72 shares of Graco Inc. common stock as part of his quarterly retainer fees, which is a direct transaction between the company and an insider.

Stakeholder Impact

• Shareholders: The transaction may instill greater confidence among shareholders as it signals that a director is increasing their personal investment in the company, aligning their interests with long-term shareholder value.
• Management: The equity compensation structure reinforces management's commitment to the company's long-term success and performance.

Key Dates

Recommendation

Keywords

Graco Inc., GGG, SEC Form 4, Insider Trading, Director Stock Acquisition, Equity Compensation, Beneficial Ownership, Dividend Reinvestment Plan