Capital Research Global Investors Raises Holdings in Patrick Industries, Inc. $PATK

Key Points

• Capital Research Global Investors increased its stake in Patrick Industries by 24.4% in the fourth quarter, ending with 1,137,530 shares worth about $123.3 million. The firm now owns roughly 3.42% of the company.
• Patrick Industries reported better-than-expected quarterly earnings, posting $1.10 EPS versus the $1.08 consensus and revenue of $997.17 million, slightly above estimates. Revenue was still down 0.6% year over year.
• The company also paid a quarterly dividend of $0.47 per share, equal to an annualized yield of 2.2%. In addition, both the CEO and another insider bought shares recently, signaling insider confidence.

Capital Research Global Investors boosted its holdings in shares of Patrick Industries, Inc. (NASDAQ:PATK - Free Report) by 24.4% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,137,530 shares of the construction company's stock after buying an additional 223,014 shares during the quarter. Capital Research Global Investors owned approximately 3.42% of Patrick Industries worth $123,342,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in Patrick Industries by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 2,470,559 shares of the construction company's stock valued at $267,883,000 after buying an additional 16,959 shares during the period. Geode Capital Management LLC increased its holdings in Patrick Industries by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 819,488 shares of the construction company's stock valued at $88,870,000 after buying an additional 4,816 shares during the period. Copeland Capital Management LLC increased its holdings in Patrick Industries by 23.4% during the fourth quarter. Copeland Capital Management LLC now owns 478,999 shares of the construction company's stock valued at $51,938,000 after buying an additional 90,691 shares during the period. Schroder Investment Management Group increased its holdings in Patrick Industries by 7.2% during the third quarter. Schroder Investment Management Group now owns 413,789 shares of the construction company's stock valued at $42,798,000 after buying an additional 27,954 shares during the period. Finally, Goldman Sachs Group Inc. increased its holdings in Patrick Industries by 19.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 392,150 shares of the construction company's stock valued at $42,521,000 after buying an additional 64,081 shares during the period. 93.29% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the stock. Robert W. Baird set a $110.00 price objective on shares of Patrick Industries in a report on Friday, May 1st. BMO Capital Markets reissued an "outperform" rating and set a $150.00 price objective (down from $155.00) on shares of Patrick Industries in a report on Monday, April 20th. Raymond James Financial set a $108.00 price target on shares of Patrick Industries in a report on Friday, May 1st. Weiss Ratings lowered shares of Patrick Industries from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday. Finally, Benchmark cut their price target on shares of Patrick Industries from $150.00 to $135.00 and set a "buy" rating on the stock in a report on Friday, May 1st. Six analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $122.63.

Patrick Industries Price Performance

NASDAQ PATK opened at $85.07 on Tuesday. The firm's fifty day simple moving average is $99.00 and its two-hundred day simple moving average is $112.22. The company has a current ratio of 2.71, a quick ratio of 1.04 and a debt-to-equity ratio of 1.16. Patrick Industries, Inc. has a 12-month low of $83.96 and a 12-month high of $148.50. The firm has a market capitalization of $2.80 billion, a P/E ratio of 21.81 and a beta of 1.09.

Patrick Industries (NASDAQ:PATK - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The construction company reported $1.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.02. Patrick Industries had a net margin of 3.46% and a return on equity of 13.24%. The business had revenue of $997.17 million for the quarter, compared to analyst estimates of $989.06 million. During the same period in the previous year, the company earned $1.11 earnings per share. The business's revenue for the quarter was down .6% on a year-over-year basis. Analysts forecast that Patrick Industries, Inc. will post 4.94 EPS for the current fiscal year.

Patrick Industries Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Tuesday, May 26th were issued a dividend of $0.47 per share. The ex-dividend date of this dividend was Tuesday, May 26th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 2.2%. Patrick Industries's payout ratio is 48.21%.

Insider Activity

In related news, insider Charles R. Roeder acquired 5,750 shares of the company's stock in a transaction dated Tuesday, May 5th. The shares were purchased at an average cost of $87.83 per share, with a total value of $505,022.50. Following the completion of the acquisition, the insider directly owned 42,147 shares of the company's stock, valued at $3,701,771.01. This represents a 15.80% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Andy L. Nemeth acquired 10,000 shares of the company's stock in a transaction dated Tuesday, May 5th. The shares were bought at an average cost of $88.00 per share, for a total transaction of $880,000.00. Following the completion of the acquisition, the chief executive officer directly owned 287,745 shares of the company's stock, valued at approximately $25,321,560. The trade was a 3.60% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders bought 37,300 shares of company stock valued at $3,537,054. 3.80% of the stock is owned by corporate insiders.

About Patrick Industries

Patrick Industries, Inc is a leading manufacturer and distributor of component products and building materials for the recreational vehicle (RV), manufactured housing, marine and industrial markets. The company supplies a broad array of interior and exterior products, including cabinetry, countertops, flooring, wall panels and decorative trim. Patrick Industries also offers engineered composites, adhesives, sealants and insulation solutions that cater to both original equipment manufacturers (OEMs) and aftermarket customers across North America.

Founded in 1959 and headquartered in Elkhart, Indiana, Patrick Industries began as a small distributor of hardwood and millwork products.

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