Exploring Graham Corporation (GHM) Investor Profile: Who’s Buying and Why?

You've watched Graham Corporation (GHM) post some defintely compelling numbers, but who is actually buying in, and what does the investor base tell you about the stock's future trajectory? We're not talking about a speculative play here; the company closed out fiscal year 2025 with strong fundamentals, reporting full-year revenue of nearly $210 million and a net income of $12.2 million, a significant jump from the prior year. Plus, the record backlog of $412.3 million provides clear revenue visibility for the next few years. But here's the critical factor: institutional investors control over 80% of the stock, with giants like BlackRock, Inc. and The Vanguard Group, Inc. holding major positions. Does that level of institutional conviction, particularly from firms holding hundreds of thousands of shares, signal a stable long-term defense and energy play, or is it a crowded trade waiting for a defense budget shift? Let's break down the investor profile-the 'who' and the 'why'-so you can decide if your portfolio should follow the smart money or look for a less-owned opportunity.

Who Invests in Graham Corporation (GHM) and Why?

If you're looking at Graham Corporation (GHM), you're seeing a stock primarily held by institutional players who are betting on the company's defense and space growth story, not its dividend. The investment thesis is simple: this is a mission-critical industrial company with a massive backlog and improving profitability.

The ownership structure is heavily skewed toward professional money managers, which tells you this isn't a retail-driven meme stock. Institutional investors-think mutual funds, pension funds, and asset managers like BlackRock, Inc. and The Vanguard Group, Inc.-hold approximately 77% of the shares outstanding. The general public, or retail investors, hold about a 17% stake. This means you're playing alongside some very large, sophisticated players who have done their homework.

Here's the quick breakdown of who holds the most sway:

• Institutional Owners: Approx. 77%
• Retail Investors: Approx. 17%
• Top 12 Shareholders: Hold 50% of the business

Investment Motivations: Betting on Defense and Space Growth

The core motivation for holding Graham Corporation (GHM) is a clear-cut growth and fundamental value proposition, not income. The company has a 0% dividend yield as of November 2025, having suspended its payments to reinvest in the business. That's a huge signal: management is prioritizing capacity and future growth over shareholder payouts right now.

The real draw is the company's strategic pivot into high-margin, mission-critical sectors. Fiscal Year 2025 (FY2025) results show why the big funds are buying in:

• Defense Dominance: The defense market now accounts for roughly 60% of the company's revenue mix. This is a stable, long-term revenue source tied to programs like the Mark 48 torpedo and Columbia-class submarine.
• Record Backlog: The total backlog hit a record $412.3 million as of March 31, 2025. That's a massive revenue cushion, especially when you consider FY2025 net sales were $209.9 million.
• Financial Strength: Graham is essentially debt-free and reported $12.2 million in Net Income for FY2025, a significant jump from the prior year. They had $30.0 million in cash as of December 31, 2024 (Q3 FY2025). You defintely like a clean balance sheet.
• Margin Expansion: Gross Margin expanded by 330 basis points to 25.2% in FY2025, showing improved operational efficiency and pricing power.

Investors are looking at the near-term catalyst of the Batavia, NY facility expansion, which is designed to boost defense production capacity and is expected to be fully operational by mid-2025. This capital expenditure is a clear sign of anticipated future revenue conversion from that huge backlog.

Investment Strategies: Long-Term Growth with a Value Anchor

Given the company's profile, the typical investment strategies fall into a few clear buckets. This isn't a short-term trading vehicle, though it has seen volatility.

The dominant strategy is Long-Term Growth. The institutional holders are buying into a multi-year growth runway, evidenced by the fact that 35% to 40% of the current backlog is expected to convert to sales between one and two years out. They are willing to overlook the lack of a dividend for capital appreciation, which has been substantial, delivering a 57% return over the past year as of August 2025.

Another key strategy is Fundamental/Value Investing. While the stock trades at a higher multiple (around 36.9x forward P/E), the value investors are drawn to the rock-solid balance sheet-zero debt and strong cash position. They see the value in the proprietary, mission-critical technology and the recurring aftermarket sales, which increased 8% in FY2025 to $46.6 million. This business is sticky, and that's a key value metric.

You can see the full story of the company's foundation and structure here: Graham Corporation (GHM): History, Ownership, Mission, How It Works & Makes Money

Here's a snapshot of the top institutional interest, based on recent filings:

The action item for you is to align your own horizon with these institutional strategies. If you're a long-term investor, the focus should be on the company's ability to execute on that $412.3 million backlog and maintain its margin expansion. If you're looking for income, you need to look elsewhere.

Institutional Ownership and Major Shareholders of Graham Corporation (GHM)

If you are looking at Graham Corporation (GHM), the first thing you need to understand is that institutional investors-the big money managers, mutual funds, and pension funds-are the primary owners. They control the vast majority of the company, which means their collective decisions drive the stock's action, plain and simple.

As of late 2025, institutional investors own approximately 69.46% of Graham Corporation's outstanding stock, though some data points to ownership closer to 80%. This concentrated ownership structure is a double-edged sword: it offers a degree of stability, but it also makes the stock price highly sensitive to any major selling by a few key players. The company's market capitalization was around $671 million in October 2025, so a few large trades can move the needle defintely.

Top Institutional Investors: Who Holds the Keys?

The investor profile for Graham Corporation is dominated by a few major players who hold significant, influential stakes. The top 12 shareholders alone control about 50% of the company, giving them a strong voice in board decisions and strategic direction. These aren't just passive index funds, either; some are active managers with a specific investment thesis for Graham's vacuum and heat transfer equipment business.

Here's a quick look at the largest institutional holders and their positions as of the most recent filings (Q3 2025):

It's important to note the presence of firms like BlackRock, Inc. and The Vanguard Group, Inc. These are index fund giants (passive investors), so their holdings are largely tied to Graham Corporation's inclusion in various market indices. Brandes Investment Partners, LP, on the other hand, is an active manager, and their larger stake suggests a more conviction-based investment. If you want to dive deeper into the company's foundation, you can check out Graham Corporation (GHM): History, Ownership, Mission, How It Works & Makes Money.

Recent Shifts: Are Institutions Buying or Selling?

The trend in 2025 has shown net institutional accumulation, meaning more institutions are buying than selling. Institutional investors increased their holdings from 74.34% to 75.96% in the first quarter of fiscal 2025 (ending March 2025), a clear signal of growing interest.

Looking at the Q3 2025 filings (ending September 30, 2025), the buying activity was notable. Institutional investors increased their total positions by 914,997 shares while decreasing positions by 804,868 shares. Here's the quick math: that's a net increase of over 110,000 shares in one quarter.

• William Blair Investment Management LLC purchased 274,015 new shares.
• Royce & Associates LP added 89,014 shares to their position.
• BlackRock, Inc. actually reduced its position by 26,605 shares.

This tells you that even among the major holders, there's a divergence of opinion. You see smaller, active managers aggressively building positions, while some of the largest, more passive funds are trimming their stakes slightly. The overall trend, still, is positive accumulation.

Impact on Stock Price and Corporate Strategy

Institutional ownership at this level-around 70% to 80%-creates a strong link between the stock price and the actions of a relatively small group of decision-makers. The stock is sensitive to their trading actions. For example, when institutional investors benefited from an 8.4% stock increase in a single week in October 2025, it showed how quickly their collective buying power can reward shareholders.

What this high concentration hides is the risk of a 'crowded trade.' If a few of the top 12 holders, who own 50% of the company, decide to sell at the same time, you could see a sharp, rapid decline in the stock price. This is a liquidity risk you must factor into your valuation model.

Strategically, this level of institutional control means the board and management must pay close attention to shareholder relations. The top holders have the power to influence corporate governance, especially through proxy votes on things like executive compensation or capital allocation. Your action item here is clear: track the 13F filings closely each quarter to see if the big money is still buying the growth story.

Key Investors and Their Impact on Graham Corporation (GHM)

You're looking at Graham Corporation (GHM) and wondering who the major players are and what they're doing with their capital. The direct takeaway is this: Graham Corporation is overwhelmingly an institutionally-owned stock, with these large holders acting as a stabilizing force, and recent moves show a clear appetite for the company's long-term growth story, especially after a strong fiscal year 2025.

Institutional investors-think mutual funds, pension funds, and asset managers-control a massive portion, around 80%, of Graham Corporation's outstanding common stock as of late 2025. This high concentration means the stock price is defintely sensitive to their collective trading decisions, but it also signals a high degree of confidence from sophisticated investors. The top 12 shareholders alone own roughly 50% of the business.

The Anchor Investors: Passive Giants and Active Managers

The investor profile for Graham Corporation is anchored by a mix of passive index funds and traditional active managers. These aren't the typical activist hedge funds looking for a quick breakup; they are long-term holders betting on the company's core businesses in Defense, Space, and Energy & Process.

Here's the quick math on who holds the most sway:

• Brandes Investment Partners, LP: The largest single shareholder, holding approximately 12% of shares outstanding. This is a significant position for an active investment manager, suggesting a deep conviction in Graham Corporation's value.
• BlackRock, Inc.: Holding about 7.3% of the common stock. As a passive powerhouse, BlackRock's stake is largely tied to Graham Corporation's inclusion in various index funds, providing a stable, foundational demand for the stock.
• The Vanguard Group, Inc.: Owning roughly 5.4% of the company. Like BlackRock, Vanguard's passive index funds provide another layer of consistent, long-term institutional support.

When you see this kind of ownership structure, the influence is often subtle but powerful. These firms don't usually demand a board seat, but their sheer size means management must maintain open communication, often participating in investor conferences like the Wells Fargo 2025 Industrials Conference, to showcase their strategic initiatives and technological advancements. You can see the foundation of this strategy in the Mission Statement, Vision, & Core Values of Graham Corporation (GHM).

Recent Capital Moves and the Growth Bet

The most telling story is the recent buying activity, which maps directly to Graham Corporation's strong fiscal year 2025 performance. The company reported Net Income of $12.2 million for FY 2025, a significant jump from the prior year. This financial strength, coupled with a record Backlog of $412.3 million, has spurred a lot of buying.

Several institutional investors materially increased their stakes in the second quarter of fiscal 2025, signaling a belief that Graham Corporation's growth trajectory is still early stage. It's a clear vote of confidence in the management team's execution and the company's focus on high-margin Defense and Space projects.

Here are some of the notable moves from Q2 2025 filings, reported in November 2025:

What this tells you is that the smart money is moving in, not out. They see the $22.4 million in Adjusted EBITDA for fiscal 2025 as a sign of operational leverage kicking in, and they are buying the stock to capture the upside from that record backlog. The institutional buying pressure helps push the stock price up, which is exactly what happened when the stock increased 8.4% in one week in October 2025.

The risk, to be fair, is that such a high institutional ownership means if a few of the top 12 shareholders decide to sell off a large chunk, the stock price could drop fast. Still, the current trend is clearly one of accumulation, driven by tangible financial results like the $66 million in revenue reported for the second quarter of fiscal 2025.

Your next step should be to monitor the next round of 13F filings to see if this trend of institutional accumulation continues into Q3 2025.

Market Impact and Investor Sentiment

You're looking for a clear read on who is driving Graham Corporation (GHM) stock and why, and the answer is institutional money with a long-term defense thesis. The current investor sentiment is generally positive, but with a significant caveat: the stock is defintely volatile, which is typical for a small-cap industrial player heavily exposed to government contract timing and broader economic shifts.

Institutional investors, the big funds like BlackRock and Vanguard, control a substantial portion of the company, owning approximately 80% of the shares outstanding as of October 2025. This high concentration means the stock price is highly sensitive to their trading actions, creating sharp price swings when they adjust their positions. The top 12 shareholders alone hold about 50% of the company, so their moves matter a lot.

Insider sentiment, which is a key indicator of management's confidence, has been positive. Over the last year, insiders bought $117.6K worth of shares in high-impact open-market transactions, while selling $0 in those same types of transactions, suggesting a clear belief in the company's near-term trajectory.

The Institutional Players: Who's Buying and Selling

The investor profile for Graham Corporation is dominated by a few major institutional holders who are either accumulating or making minor adjustments to their large positions. This isn't a stock driven by retail day traders; it's a battle of the big funds.

For example, as of the Q3 2025 filings (September 30, 2025), Brandes Investment Partners LP was the largest institutional holder with 1,372,218 shares. To be fair, not all major funds are in lockstep; while Brandes was adding shares, BlackRock, Inc. reduced its stake slightly, holding 773,339 shares after selling 26,605 shares in the quarter. Still, The Vanguard Group, Inc. increased its position by 12,974 shares to a total of 602,448 shares.

Here's a quick look at the top institutional activity from the most recent filings:

• Brandes Investment Partners LP: Increased stake by 55,683 shares.
• The Vanguard Group, Inc.: Increased stake by 12,974 shares.
• BlackRock, Inc.: Decreased stake by 26,605 shares.

The net takeaway is that the largest money managers are maintaining a significant, controlling interest, signaling a long-term conviction in the business model, which you can read more about here: Graham Corporation (GHM): History, Ownership, Mission, How It Works & Makes Money.

Recent Market Reactions and Volatility

The stock market's response to Graham Corporation's news and the broader economic climate has been characterized by sharp volatility. The stock has experienced 22 moves greater than 5% over the last year, which tells you this is not a smooth ride.

In October 2025, the stock fell 3.3% in a single afternoon, not because of company-specific news, but as part of a broader market downturn driven by profit-taking and macroeconomic uncertainty. This proves that even with strong fundamentals, the stock is subject to the whims of the overall market. Conversely, the stock rebounded 32% in the 30 days leading up to May 2025, showing how quickly capital flows back in when the outlook improves.

The company's market capitalization stood at approximately $588.474 million as of late November 2025, reflecting a company with a strong niche but still small enough to be highly reactive to large institutional block trades or macro news like Federal Reserve interest rate cuts.

Analyst Perspectives and Future Opportunities

Wall Street analysts are clearly bullish on the company's core strategy, which is heavily focused on the Defense and Space sectors. The consensus rating is a Moderate Buy from the analysts covering the stock, and they see a clear path for significant upside.

The average 12-month price target is set at $75.50, which represents a substantial 29.84% upside potential from the stock's price of $58.15 in the fall of 2025. This optimism is grounded in the company's strong fiscal year 2025 performance, where Net Income reached $12.2 million and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) hit $22.4 million.

Here's the quick math on why they are optimistic: Graham Corporation ended fiscal year 2025 with a record Backlog of $412.3 million, driven by major defense programs like the Mark 48 torpedo and Columbia-class submarine projects. This backlog provides excellent revenue visibility. Plus, analysts anticipate Earnings Per Share (EPS) to climb by 20% in the coming fiscal year (FY2026).

What this estimate hides is the execution risk on that massive backlog, but the strong balance sheet helps: the company is essentially debt-free and held $21.6 million in cash and cash equivalents at the end of FY2025.

The opportunity is clear: the market is rewarding the shift toward high-margin, mission-critical defense and space work. If management delivers on the $412.3 million backlog, the stock will likely meet or exceed the $75.50 price target.

Next step: Check the Q3 2026 earnings release for any updates on the backlog conversion rate, as that's the real driver for the next 12 months.