Patrick Industries (NASDAQ:PATK) Shares Gap Down - What's Next?

Key Points

• Patrick Industries shares gapped down at Tuesday’s open, falling from a prior close of $93.18 to an opening price of $84.63 before trading around $84.06.
• Analysts remain mixed but generally constructive: the stock carries a Moderate Buy consensus with a $122.62 average target, though some firms recently trimmed targets and one downgraded the stock to strong sell.
• The company’s latest quarter topped expectations, with EPS of $1.10 and revenue of $997.17 million, while insiders have also been buying shares and the stock pays a quarterly dividend yielding about 2.2%.

Patrick Industries, Inc. (NASDAQ:PATK - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $93.18, but opened at $84.63. Patrick Industries shares last traded at $84.0550, with a volume of 195,658 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on PATK. BMO Capital Markets reaffirmed an "outperform" rating and set a $150.00 target price (down from $155.00) on shares of Patrick Industries in a research report on Monday, April 20th. Zacks Research cut Patrick Industries from a "hold" rating to a "strong sell" rating in a research note on Tuesday, May 5th. Roth Mkm set a $128.00 price target on shares of Patrick Industries in a report on Tuesday, May 5th. Benchmark lowered their price objective on Patrick Industries from $150.00 to $135.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Finally, Wall Street Zen lowered shares of Patrick Industries from a "buy" rating to a "hold" rating in a research note on Sunday, April 12th. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Patrick Industries presently has a consensus rating of "Moderate Buy" and a consensus price target of $122.62.

Patrick Industries Stock Performance

The company has a current ratio of 2.71, a quick ratio of 1.04 and a debt-to-equity ratio of 1.16. The company has a market cap of $2.81 billion, a P/E ratio of 21.89 and a beta of 1.09. The company's 50-day moving average price is $91.97 and its two-hundred day moving average price is $110.32.

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

Patrick Industries Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 26th were given a $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Tuesday, May 26th. Patrick Industries's dividend payout ratio is 48.21%.

Insiders Place Their Bets

In other news, insider Charles R. Roeder purchased 5,750 shares of Patrick Industries stock in a transaction dated Tuesday, May 5th. The stock was acquired at an average cost of $87.83 per share, for a total transaction of $505,022.50. Following the acquisition, the insider directly owned 42,147 shares in the company, valued at $3,701,771.01. This represents a 15.80% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Matthew S. Filer bought 1,000 shares of the firm's stock in a transaction on Tuesday, May 5th. The stock was acquired at an average cost of $85.50 per share, with a total value of $85,500.00. Following the completion of the transaction, the chief financial officer directly owned 21,614 shares of the company's stock, valued at approximately $1,847,997. This represents a 4.85% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 28,700 shares of company stock valued at $2,532,880 over the last quarter. 3.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Patrick Industries

Institutional investors have recently bought and sold shares of the stock. Mackenzie Financial Corp increased its position in shares of Patrick Industries by 4.0% during the 4th quarter. Mackenzie Financial Corp now owns 2,078 shares of the construction company's stock worth $231,000 after purchasing an additional 80 shares in the last quarter. CIBC Asset Management Inc lifted its holdings in Patrick Industries by 4.1% during the 4th quarter. CIBC Asset Management Inc now owns 2,256 shares of the construction company's stock worth $245,000 after buying an additional 88 shares in the last quarter. Hennion & Walsh Asset Management Inc. boosted its holdings in Patrick Industries by 4.1% in the fourth quarter. Hennion & Walsh Asset Management Inc. now owns 2,479 shares of the construction company's stock valued at $269,000 after acquiring an additional 98 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its stake in shares of Patrick Industries by 1.3% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 7,576 shares of the construction company's stock valued at $821,000 after purchasing an additional 100 shares during the last quarter. Finally, California State Teachers Retirement System boosted its stake in Patrick Industries by 0.5% in the second quarter. California State Teachers Retirement System now owns 29,535 shares of the construction company's stock valued at $2,725,000 after acquiring an additional 154 shares during the last quarter. 93.29% of the stock is currently owned by institutional investors.

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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