Hawkins (NASDAQ:HWKN) Trading Down 11.9% After Earnings Miss

Hawkins, Inc. (NASDAQ:HWKN) shares dropped 11.9% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $135.68 and last traded at $135.53. Approximately 134,527 shares were traded during trading, an increase of 16% from the average daily volume of 115,781 shares. The stock had previously closed at $153.75.

The specialty chemicals company reported $0.72 earnings per share for the quarter, missing the consensus estimate of $0.75 by ($0.03). Hawkins had a net margin of 7.95% and a return on equity of 17.42%. The company had revenue of $244.08 million during the quarter, compared to the consensus estimate of $252.51 million.

Hawkins Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Friday, February 13th will be paid a $0.19 dividend. The ex-dividend date is Friday, February 13th. This represents a $0.76 dividend on an annualized basis and a yield of 0.6%. Hawkins’s dividend payout ratio (DPR) is currently 19.10%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Weiss Ratings downgraded Hawkins from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, January 12th. Zacks Research upgraded shares of Hawkins from a “strong sell” rating to a “hold” rating in a report on Friday, January 2nd. Finally, BWS Financial restated a “buy” rating and set a $200.00 target price on shares of Hawkins in a research note on Monday, November 3rd. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $162.50.

Insider Activity

In related news, VP Drew M. Grahek bought 1,587 shares of the business’s stock in a transaction on Monday, November 3rd. The stock was acquired at an average price of $126.34 per share, for a total transaction of $200,501.58. Following the purchase, the vice president directly owned 39,640 shares in the company, valued at $5,008,117.60. This trade represents a 4.17% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 4.10% of the company’s stock.

Institutional Investors Weigh In On Hawkins

A number of institutional investors and hedge funds have recently made changes to their positions in HWKN. AQR Capital Management LLC grew its position in Hawkins by 9.0% during the first quarter. AQR Capital Management LLC now owns 12,331 shares of the specialty chemicals company’s stock worth $1,306,000 after buying an additional 1,017 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Hawkins by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,499 shares of the specialty chemicals company’s stock worth $1,218,000 after buying an additional 494 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Hawkins by 9.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 52,778 shares of the specialty chemicals company’s stock worth $5,590,000 after acquiring an additional 4,400 shares during the last quarter. Jane Street Group LLC raised its stake in shares of Hawkins by 83.2% during the first quarter. Jane Street Group LLC now owns 38,416 shares of the specialty chemicals company’s stock worth $4,069,000 after acquiring an additional 17,447 shares in the last quarter. Finally, GAMMA Investing LLC grew its holdings in shares of Hawkins by 24.1% during the 2nd quarter. GAMMA Investing LLC now owns 659 shares of the specialty chemicals company’s stock valued at $94,000 after purchasing an additional 128 shares during the last quarter. Hedge funds and other institutional investors own 69.71% of the company’s stock.

Hawkins Trading Down 10.8%

The company has a quick ratio of 1.49, a current ratio of 2.43 and a debt-to-equity ratio of 0.53. The firm’s 50-day simple moving average is $144.14 and its 200-day simple moving average is $156.57. The firm has a market capitalization of $2.86 billion, a PE ratio of 34.79, a price-to-earnings-growth ratio of 2.38 and a beta of 0.86.

Hawkins Company Profile

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.