Patrick Industries (NASDAQ:PATK) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Patrick Industries (NASDAQ:PATK) from a buy to a hold, while the street consensus remains a "Moderate Buy" with seven buy ratings, two holds and an average price target of $133.25.
• Patrick beat expectations for the latest quarter with $0.84 EPS vs. $0.74 expected and revenue of $924.17M (up 9.2% year-over-year).
• COO Hugo E. Gonzalez sold 13,514 shares (about $1.53M) and insiders were net sellers over the past 90 days, even as institutional ownership is very high at 93.29% and several large funds boosted their stakes.

Patrick Industries (NASDAQ:PATK - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Sunday.

PATK has been the subject of several other research reports. KeyCorp cut their target price on Patrick Industries from $155.00 to $140.00 and set an "overweight" rating for the company in a research note on Thursday. Truist Financial set a $126.00 price target on Patrick Industries in a research report on Friday, January 9th. Robert W. Baird set a $140.00 price target on shares of Patrick Industries in a report on Friday, February 6th. Benchmark restated a "buy" rating on shares of Patrick Industries in a research report on Friday, February 6th. Finally, Weiss Ratings upgraded shares of Patrick Industries from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, February 23rd. Seven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $133.25.

Patrick Industries Price Performance

Patrick Industries stock opened at $117.60 on Friday. The company has a debt-to-equity ratio of 1.08, a quick ratio of 0.80 and a current ratio of 2.51. The stock has a fifty day moving average of $123.02 and a 200-day moving average of $113.96. Patrick Industries has a 52 week low of $75.26 and a 52 week high of $148.50. The stock has a market capitalization of $3.89 billion, a P/E ratio of 30.08 and a beta of 1.35.

Patrick Industries (NASDAQ:PATK - Get Free Report) last released its earnings results on Thursday, February 5th. The construction company reported $0.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.74 by $0.10. The business had revenue of $924.17 million during the quarter, compared to the consensus estimate of $858.62 million. Patrick Industries had a return on equity of 13.28% and a net margin of 3.42%.The business's revenue for the quarter was up 9.2% on a year-over-year basis. During the same period last year, the business posted $0.52 earnings per share. On average, sell-side analysts expect that Patrick Industries will post 5.33 earnings per share for the current fiscal year.

Insider Activity at Patrick Industries

In related news, COO Hugo E. Gonzalez sold 13,514 shares of Patrick Industries stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $113.10, for a total transaction of $1,528,433.40. Following the completion of the sale, the chief operating officer owned 33,864 shares of the company's stock, valued at approximately $3,830,018.40. This trade represents a 28.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John A. Forbes sold 2,704 shares of Patrick Industries stock in a transaction on Friday, February 6th. The shares were sold at an average price of $140.75, for a total value of $380,588.00. Following the sale, the director directly owned 49,272 shares of the company's stock, valued at $6,935,034. This represents a 5.20% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have purchased 11,110 shares of company stock valued at $1,289,895 and have sold 20,121 shares valued at $2,477,337. Corporate insiders own 4.40% of the company's stock.

Institutional Investors Weigh In On Patrick Industries

Several hedge funds have recently added to or reduced their stakes in PATK. Wellington Management Group LLP lifted its stake in Patrick Industries by 19.9% during the fourth quarter. Wellington Management Group LLP now owns 2,217,107 shares of the construction company's stock worth $240,401,000 after purchasing an additional 367,802 shares during the last quarter. SG Americas Securities LLC lifted its stake in Patrick Industries by 12,134.2% during the fourth quarter. SG Americas Securities LLC now owns 259,365 shares of the construction company's stock worth $28,123,000 after purchasing an additional 257,245 shares during the last quarter. Capital Research Global Investors lifted its stake in Patrick Industries by 24.4% during the fourth quarter. Capital Research Global Investors now owns 1,137,530 shares of the construction company's stock worth $123,342,000 after purchasing an additional 223,014 shares during the last quarter. Bessemer Group Inc. lifted its stake in Patrick Industries by 3,602.4% during the fourth quarter. Bessemer Group Inc. now owns 149,912 shares of the construction company's stock worth $16,255,000 after purchasing an additional 145,863 shares during the last quarter. Finally, Tributary Capital Management LLC lifted its stake in Patrick Industries by 52.0% during the third quarter. Tributary Capital Management LLC now owns 371,608 shares of the construction company's stock worth $38,435,000 after purchasing an additional 127,099 shares during the last quarter. Institutional investors own 93.29% of the company's stock.

Patrick Industries Company Profile

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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