Hawkins (NASDAQ:HWKN) Issues Quarterly Earnings Results

Key Points

• Hawkins beat quarterly expectations: The specialty chemicals company reported EPS of $1.34, exceeding the $1.19 consensus, while revenue of $313.82 million surpassed estimates of $302.70 million.
• Shares rose 2.4% to $135.44 following the results. Hawkins maintains solid liquidity, with a 1.54 quick ratio and 2.27 current ratio, and has a market capitalization of approximately $2.83 billion.
• Analyst sentiment remains mixed: The stock carries a consensus “Hold” rating and a $170.50 target price. The company also declared a quarterly dividend of $0.19 per share, equal to a 0.6% yield.

Hawkins (NASDAQ:HWKN - Get Free Report) posted its quarterly earnings results on Monday. The specialty chemicals company reported $1.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.15, FiscalAI reports. The business had revenue of $313.82 million during the quarter, compared to analyst estimates of $302.70 million. Hawkins had a net margin of 7.29% and a return on equity of 15.42%.

Hawkins Trading Up 2.4%

Shares of NASDAQ:HWKN traded up $3.12 during midday trading on Monday, hitting $135.44. 133,830 shares of the stock traded hands, compared to its average volume of 162,803. The company has a quick ratio of 1.54, a current ratio of 2.27 and a debt-to-equity ratio of 0.45. The business's 50 day moving average is $126.32 and its two-hundred day moving average is $141.80. The stock has a market capitalization of $2.83 billion, a PE ratio of 35.09, a P/E/G ratio of 2.71 and a beta of 0.74. Hawkins has a one year low of $116.04 and a one year high of $174.12.

Hawkins Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were paid a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, August 14th. Hawkins's dividend payout ratio is 20.73%.

Insider Activity

In other Hawkins news, VP Douglas Lange bought 910 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were bought 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 directly owned 28,169 shares of the company's stock, valued at $3,345,068.75. This trade represents a 3.34% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Jeffrey Oldenkamp purchased 1,290 shares of Hawkins stock in a transaction that occurred 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 acquisition, the chief financial officer owned 104,223 shares in the company, valued at $12,402,537. This trade represents a 1.25% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 3.70% of the stock is owned by company insiders.

Analyst Ratings Changes

Several equities research analysts recently weighed in on HWKN shares. Barclays set a $141.00 target price on Hawkins and gave the company an "equal weight" rating in a report on Tuesday, October 13th. Weiss Ratings raised Hawkins from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, September 21st. Zacks Research downgraded Hawkins from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 4th. Finally, BWS Financial reiterated a "buy" rating and issued a $200.00 price objective on shares of Hawkins in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $170.50.

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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