Hawkins, Inc. (NASDAQ:HWKN) Raises Dividend to $0.20 Per Share

Key Points

• Hawkins raised its quarterly dividend 5.3% to $0.20 per share, equivalent to $0.80 annually and a 0.6% yield. The company has increased its dividend for 20 consecutive years, with a 17.0% payout ratio.
• Hawkins reported quarterly earnings of $1.34 per share, beating analyst expectations of $1.19, while revenue of $313.82 million also exceeded the $302.70 million consensus estimate.
• Company insiders recently bought shares, and institutional investors own 69.71% of Hawkins stock. Shares opened at $135.44, up 2.4%.

Hawkins, Inc. (NASDAQ:HWKN - Get Free Report) announced a quarterly dividend on Monday, October 26th. Shareholders of record on Wednesday, November 11th will be paid a dividend of $0.20 per share by the specialty chemicals company on Wednesday, November 25th. This represents a $0.80 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Wednesday, November 11th. This is a 5.3% increase from Hawkins's previous quarterly dividend of $0.19.

Hawkins has raised its dividend by an average of 0.1% per year over the last three years and has increased its dividend every year for the last 20 years. Hawkins has a dividend payout ratio of 17.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Hawkins to earn $4.80 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 16.7%.

Hawkins Stock Up 2.4%

Shares of NASDAQ:HWKN opened at $135.44 on Tuesday. The company has a fifty day moving average of $126.44 and a 200-day moving average of $143.14. The company has a market capitalization of $2.83 billion, a PE ratio of 35.09, a price-to-earnings-growth ratio of 2.71 and a beta of 0.74. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.54 and a current ratio of 2.27. Hawkins has a 52-week low of $116.04 and a 52-week high of $174.12.

Hawkins (NASDAQ:HWKN - Get Free Report) last released its quarterly earnings data on Monday, October 26th. The specialty chemicals company reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.15. The company had revenue of $313.82 million for the quarter, compared to the consensus estimate of $302.70 million. Hawkins had a return on equity of 15.42% and a net margin of 7.29%. On average, equities analysts predict that Hawkins will post 4.07 EPS for the current fiscal year.

Insider Buying and Selling

In other Hawkins news, VP Douglas Lange purchased 910 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were purchased at an average cost of $118.75 per share, with a total value of $108,062.50. Following the completion of the purchase, the vice president owned 28,169 shares in the company, valued at $3,345,068.75. This represents a 3.34% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Jeffrey Oldenkamp purchased 1,290 shares of the business's stock in a transaction on Thursday, August 27th. The shares were acquired at an average price of $119.00 per share, for a total transaction of $153,510.00. Following the completion of the acquisition, the chief financial officer directly owned 104,223 shares in the company, valued at approximately $12,402,537. This represents a 1.25% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 3.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Gibbs Wealth Management raised its holdings in shares of Hawkins by 4.8% during the third quarter. Gibbs Wealth Management now owns 3,158 shares of the specialty chemicals company's stock valued at $398,000 after purchasing an additional 146 shares during the period. Sterling Capital Management LLC grew its stake in shares of Hawkins by 842.0% in the 3rd quarter. Sterling Capital Management LLC now owns 650 shares of the specialty chemicals company's stock valued at $82,000 after buying an additional 581 shares during the period. Inspire Investing LLC grew its stake in shares of Hawkins by 4.0% in the 3rd quarter. Inspire Investing LLC now owns 5,032 shares of the specialty chemicals company's stock valued at $634,000 after buying an additional 194 shares during the period. Curry Webb Wealth Management LLC bought a new stake in Hawkins in the 3rd quarter valued at about $77,000. Finally, Diversify Advisory Services LLC increased its position in Hawkins by 4.9% in the 3rd quarter. Diversify Advisory Services LLC now owns 13,549 shares of the specialty chemicals company's stock valued at $1,786,000 after buying an additional 634 shares in the last quarter. 69.71% of the stock is owned by institutional investors.

Hawkins Company Profile

Hawkins, Inc NASDAQ: HWKN is a chemical manufacturer, blender and distributor serving customers across the United States. The company supplies a range of water treatment chemicals, industrial chemicals and specialty products to municipal, commercial and industrial users.

Its water treatment business provides chemicals and related solutions used in drinking water, wastewater and industrial water treatment applications. Hawkins also serves the industrial, health and nutrition, and specialty chemical markets, offering products such as chemical blends, custom formulations and other materials used in manufacturing, agriculture, food processing and pharmaceutical applications.

Founded in 1938, Hawkins is headquartered in Roseville, Minnesota, and operates through a network of manufacturing, blending, distribution and sales locations in the United States.

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