Form 4: Graco Inc. Director J Kevin Gilligan Reports Acquisition of Deferred Stock

Director J Kevin Gilligan reported the acquisition of deferred stock shares in Graco Inc. on October 1, 2024.

Summary

• On October 1, 2024, J Kevin Gilligan, a director of Graco Inc., acquired 381.38 shares of deferred stock.
• These shares were accrued under the Graco Inc. Amended and Restated 2019 Stock Incentive Plan.
• The deferred stock will be settled 100% in Graco common stock upon termination of service on the Board, either in a lump sum or installments.
• The acquisition was in lieu of quarterly retainer fees.
• Following the transaction, Gilligan beneficially owns 94,155.4274 shares of Graco Inc. deferred stock.
• This number includes shares acquired under the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP).

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine insider transaction, indicating the director's continued investment in the company. There are no explicitly negative aspects.

Positives

• The acquisition of deferred stock demonstrates the director's continued investment in the company.
• The deferred stock plan aligns the director's interests with those of the shareholders, as the shares are settled in common stock upon termination of service.

Future Outlook

The deferred stock shares will be settled 100% in Graco common stock in a lump sum or installments upon reporting person's termination of service on the Board.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. It provides transparency into the actions of company directors and their holdings in the company's stock.

Comparison to Industry Standards

• Insider transactions are a common occurrence in publicly traded companies and are regulated by the SEC.
• Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders.
• The Graco Inc. Amended and Restated 2019 Stock Incentive Plan is a typical compensation mechanism used by companies to align the interests of directors and executives with those of shareholders.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it demonstrates the director's continued investment in the company.

Key Dates