Short Interest in Hawkins, Inc. (NASDAQ:HWKN) Declines By 18.6%

Key Points

• Short interest fell 18.6% in February to 1,296,296 shares (about 6.5% of shares sold short), yielding a short‑interest ratio of 14.4 days based on average daily volume.
• Analyst consensus is a "Hold" with a $162.50 average target; two analysts rate Buy and three rate Hold, with recent moves including BWS reiterating a $200 Buy and Weiss downgrading to Hold.
• Insider activity: Director James A. Faulconbridge bought 1,500 shares at roughly $129.29 on Feb. 4, raising his stake to 50,907 shares; insiders now own about 4.10% of the company.

Hawkins, Inc. (NASDAQ:HWKN - Get Free Report) was the target of a significant drop in short interest during the month of February. As of February 27th, there was short interest totaling 1,296,296 shares, a drop of 18.6% from the February 12th total of 1,593,423 shares. Currently, 6.5% of the shares of the company are sold short. Based on an average daily trading volume, of 89,845 shares, the short-interest ratio is currently 14.4 days. Based on an average daily trading volume, of 89,845 shares, the short-interest ratio is currently 14.4 days. Currently, 6.5% of the shares of the company are sold short.

Wall Street Analyst Weigh In

HWKN has been the subject of a number of research analyst reports. BWS Financial restated a "buy" rating and issued a $200.00 target price on shares of Hawkins in a research note on Thursday, January 29th. Zacks Research raised Hawkins from a "strong sell" rating to a "hold" rating in a report on Friday, January 2nd. Finally, Weiss Ratings cut Hawkins from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, January 12th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $162.50.

Hawkins Trading Up 0.1%

Shares of Hawkins stock opened at $139.88 on Friday. The stock has a market cap of $2.92 billion, a PE ratio of 35.41, a price-to-earnings-growth ratio of 2.96 and a beta of 0.82. The firm has a fifty day moving average price of $146.77 and a 200 day moving average price of $151.31. Hawkins has a 1 year low of $101.72 and a 1 year high of $186.15. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.35 and a quick ratio of 1.46.

Hawkins (NASDAQ:HWKN - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The specialty chemicals company reported $0.72 EPS for the quarter, missing the consensus estimate of $0.75 by ($0.03). The business had revenue of $244.08 million during the quarter, compared to analysts' expectations of $252.51 million. Hawkins had a net margin of 7.75% and a return on equity of 16.85%. Equities research analysts predict that Hawkins will post 4 earnings per share for the current year.

Hawkins Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Friday, February 13th were paid a $0.19 dividend. The ex-dividend date was Friday, February 13th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.5%. Hawkins's dividend payout ratio is presently 19.24%.

Insider Activity at Hawkins

In related news, Director James A. Faulconbridge acquired 1,500 shares of the stock in a transaction dated Wednesday, February 4th. The stock was acquired at an average cost of $129.29 per share, for a total transaction of $193,935.00. Following the completion of the purchase, the director owned 50,907 shares of the company's stock, valued at approximately $6,581,766.03. This represents a 3.04% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 4.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Salomon & Ludwin LLC purchased a new stake in Hawkins in the 3rd quarter worth approximately $27,000. Kestra Advisory Services LLC purchased a new stake in Hawkins during the fourth quarter worth $29,000. First Horizon Corp purchased a new stake in Hawkins during the third quarter worth $34,000. Sound Income Strategies LLC acquired a new stake in Hawkins during the fourth quarter valued at $34,000. Finally, Simplex Trading LLC grew its position in Hawkins by 246.0% during the fourth quarter. Simplex Trading LLC now owns 346 shares of the specialty chemicals company's stock valued at $49,000 after buying an additional 246 shares during the period. 69.71% of the stock is currently owned by hedge funds and other institutional investors.

About Hawkins

Hawkins, Inc NASDAQ: HWKN is a specialty chemical company that produces and distributes water-treatment and industrial chemicals across North America. Founded in 1938 and headquartered in Roseville, Minnesota, the company has built a network of manufacturing facilities and distribution centers that serve municipal, industrial and commercial customers. As a publicly traded entity, Hawkins leverages its long-standing presence in the chemical distribution industry to provide tailored solutions for complex water-treatment challenges and specialty chemical needs.

Hawkins' product portfolio encompasses a wide range of chemicals, including sodium hypochlorite, sodium hydroxide, hydrogen peroxide, chlorine, acids and specialty blends.

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