Patrick Industries (NASDAQ:PATK) Stock Price Down 6.2% Following Analyst Downgrade

Key Points

• Stock down 6.2% — Patrick Industries fell about 6.2% to roughly $87 mid-day after KeyCorp cut its price target from $140 to $125 while retaining an overweight rating; volume was ~230,548 shares, down ~44% from average.
• Q1 beat and analyst sentiment remains constructive — Q1 EPS was $1.10 vs. $1.08 expected and revenue was $997.2M vs. $989.1M, and analysts maintain a consensus "Moderate Buy" with an average target near $124.13, implying notable upside from current levels.
• Insider buys and heavy institutional ownership — A director bought 10,000 shares at ~$113.68 (CAO also bought 1,000 shares), and institutions/hedge funds own about 93.3% of the company, indicating strong institutional interest.

Patrick Industries, Inc. (NASDAQ:PATK - Get Free Report) shares were down 6.2% during mid-day trading on Friday after KeyCorp lowered their price target on the stock from $140.00 to $125.00. KeyCorp currently has an overweight rating on the stock. Patrick Industries traded as low as $86.86 and last traded at $87.2590. Approximately 230,548 shares changed hands during trading, a decline of 44% from the average daily volume of 412,045 shares. The stock had previously closed at $93.00.

Other equities research analysts have also issued reports about the stock. Weiss Ratings raised shares of Patrick Industries from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, February 23rd. Roth Mkm restated a "buy" rating and set a $140.00 target price (down from $157.00) on shares of Patrick Industries in a research report on Thursday, April 16th. Benchmark cut their target price on shares of Patrick Industries from $150.00 to $135.00 and set a "buy" rating for the company in a research note on Friday. Wall Street Zen cut shares of Patrick Industries from a "buy" rating to a "hold" rating in a research note on Sunday, April 12th. Finally, Robert W. Baird set a $140.00 price objective on shares of Patrick Industries in a report on Friday, February 6th. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $124.13.

Insider Activity

In other Patrick Industries news, Director M Scott Welch acquired 10,000 shares of the company's stock in a transaction on Thursday, March 12th. The stock was acquired at an average cost of $113.68 per share, with a total value of $1,136,800.00. Following the purchase, the director directly owned 146,000 shares of the company's stock, valued at approximately $16,597,280. This represents a 7.35% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Matthew S. Filer bought 1,000 shares of Patrick Industries stock in a transaction dated Friday, February 6th. The stock was acquired at an average price of $139.91 per share, for a total transaction of $139,910.00. Following the completion of the acquisition, the chief accounting officer owned 20,614 shares in the company, valued at approximately $2,884,104.74. The trade was a 5.10% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders purchased 11,110 shares of company stock worth $1,289,895 and sold 20,121 shares worth $2,477,337. 3.80% of the stock is owned by insiders.

Key Patrick Industries News

Here are the key news stories impacting Patrick Industries this week:

• Positive Sentiment: Q1 results slightly beat consensus — EPS $1.10 vs. $1.08 estimate and revenue $997.2M vs. $989.1M estimate; the beat shows near-term operating resilience despite revenue being roughly flat year-over-year. PR Newswire: Q1 Financial Results
• Positive Sentiment: Analysts kept constructive ratings — Benchmark and KeyCorp left “buy/overweight” stances even after lowering targets, and the revised targets still imply substantial upside (KeyCorp $125 ≈ 40.5% upside; Benchmark $135 ≈ 51.7% upside vs. current price). Benzinga: Analyst Notes
• Neutral Sentiment: Earnings materials and call details are available for due diligence — slide deck and full transcript provide management commentary on margins, liquidity and potential M&A/merger talks that investors are watching. Earnings Call Transcript
• Neutral Sentiment: Analyst write-ups (Zacks, MarketBeat, Stamford Advocate) highlight key metrics — ROE (~13.3%), net margin (~3.4%), and slight revenue decline; these contextual pieces help assess whether the beat is durable. Zacks: Q1 Coverage
• Negative Sentiment: KeyCorp lowered its price target from $140 to $125 — the cut signals tempered near-term expectations and likely pressured the share price despite the retained overweight rating. The Fly / Benzinga: KeyCorp PT Cut
• Negative Sentiment: Benchmark lowered its price target from $150 to $135 — another analyst-led reduction adding selling pressure even though the firm kept a buy rating. Benzinga: Benchmark PT Cut

Hedge Funds Weigh In On Patrick Industries

Institutional investors and hedge funds have recently modified their holdings of the stock. Wellington Management Group LLP grew its holdings in Patrick Industries by 19.9% during the 4th quarter. Wellington Management Group LLP now owns 2,217,107 shares of the construction company's stock valued at $240,401,000 after purchasing an additional 367,802 shares during the last quarter. SG Americas Securities LLC boosted its stake in shares of 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 valued at $28,123,000 after purchasing an additional 257,245 shares during the period. Capital Research Global Investors grew its holdings in shares of Patrick Industries by 24.4% in 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. grew its holdings in shares of Patrick Industries by 3,602.4% in 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 increased its stake in Patrick Industries by 52.0% in the 3rd quarter. Tributary Capital Management LLC now owns 371,608 shares of the construction company's stock worth $38,435,000 after buying an additional 127,099 shares during the period. Hedge funds and other institutional investors own 93.29% of the company's stock.

Patrick Industries Stock Down 6.6%

The company has a market cap of $2.87 billion, a P/E ratio of 22.30 and a beta of 1.35. 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 business's fifty day moving average is $112.42 and its two-hundred day moving average is $113.82.

Patrick Industries (NASDAQ:PATK - Get Free Report) last issued its earnings results on Thursday, April 30th. The construction company reported $1.10 EPS for the quarter, topping analysts' consensus estimates of $1.08 by $0.02. The business had revenue of $997.17 million for the quarter, compared to the consensus estimate of $989.06 million. Patrick Industries had a net margin of 3.42% and a return on equity of 13.28%. The company's revenue for the quarter was down .6% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.11 EPS. Equities analysts predict that Patrick Industries, Inc. will post 5.37 EPS for the current year.

Patrick Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 9th. Investors of record on Monday, February 23rd were issued a $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Monday, February 23rd. Patrick Industries's payout ratio is presently 48.08%.

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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