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

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

The specialty chemicals company reported $0.72 EPS for the quarter, missing analysts’ consensus estimates of $0.75 by ($0.03). The company had revenue of $244.08 million for the quarter, compared to the consensus estimate of $252.51 million. Hawkins had a return on equity of 16.85% and a net margin of 7.75%.

Hawkins Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Friday, February 13th will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Friday, February 13th. Hawkins’s dividend payout ratio is currently 19.24%.

Key Hawkins News

Here are the key news stories impacting Hawkins this week:

• Positive Sentiment: BWS Financial reaffirmed a “buy” rating on HWKN and set a $200 price target (implies substantial upside vs. current levels), which supports longer‑term bullish analyst conviction. Hawkins’ (HWKN) Buy Rating Reaffirmed at BWS Financial
• Positive Sentiment: Institutional activity: Giverny Capital added HWKN to its Q4 holdings, signaling fresh institutional demand that can help stabilize the stock after a selloff. Giverny Capital Asset Management adds WSO, HWKN, exits ALGN, KMX among Q4 moves
• Positive Sentiment: Investment thesis note: A Seeking Alpha piece highlights Hawkins’ “long runway” for acquisitions that could compound growth — a strategic positive if management executes M&A accretively. Hawkins Inc.: Long Runway Of Potential Acquisitions It Could Compound Well
• Positive Sentiment: Dividend: Hawkins declared a quarterly dividend of $0.19/share (record Feb 13, pay Feb 27), offering income support (yield ≈0.5%) and a modest buyback/dividend signal from the board.
• Neutral Sentiment: Analyst views are mixed across the materials sector: a Globe and Mail roundup notes divergent opinions on Hawkins vs. peers, which can produce short‑term volatility as investors parse differing forecasts. Analysts’ Opinions Are Mixed on These Materials Stocks: Hawkins (HWKN) and PPG Industries (PPG)
• Neutral Sentiment: Unrelated names: A small-cap Australian miner, Venus Metals, granted options to a director named Peter Hawkins — likely coincidental and not material to Hawkins, Inc. investors. Venus Metals Issues 750,000 Director Options to Peter Hawkins
• Negative Sentiment: Q3 results: Hawkins’ fiscal Q3 EPS ($0.72) and revenue ($244.1M) missed consensus (EPS $0.75; revenue $252.5M). The earnings miss is the most direct near‑term negative catalyst for today’s decline as investors reprice growth and margin expectations. Hawkins: Fiscal Q3 Earnings Snapshot

Analyst Ratings Changes

A number of research firms have issued reports on HWKN. BWS Financial reissued a “buy” rating and issued a $200.00 price objective on shares of Hawkins in a report on Thursday. Weiss Ratings downgraded Hawkins from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, January 12th. Finally, Zacks Research upgraded Hawkins from a “strong sell” rating to a “hold” rating in a research note on Friday, January 2nd. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $162.50.

Insider Buying and Selling

In other news, VP Drew M. Grahek acquired 1,587 shares of the stock in a transaction dated Monday, November 3rd. The stock was bought at an average price of $126.34 per share, with a total value of $200,501.58. Following the completion of the purchase, the vice president directly owned 39,640 shares of the company’s stock, valued at $5,008,117.60. This represents a 4.17% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 4.10% of the company’s stock.

Institutional Trading of Hawkins

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Salomon & Ludwin LLC acquired a new stake in shares of Hawkins during the third quarter worth $27,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new stake in Hawkins during the second quarter valued at $31,000. First Horizon Corp bought a new stake in Hawkins during the third quarter valued at $34,000. Sound Income Strategies LLC acquired a new stake in Hawkins during the 4th quarter worth about $34,000. Finally, Aster Capital Management DIFC Ltd raised its position in shares of Hawkins by 62.2% in the 3rd quarter. Aster Capital Management DIFC Ltd now owns 300 shares of the specialty chemicals company’s stock worth $55,000 after acquiring an additional 115 shares in the last quarter. Institutional investors and hedge funds own 69.71% of the company’s stock.

Hawkins Price Performance

The company has a market capitalization of $2.72 billion, a price-to-earnings ratio of 32.97, a P/E/G ratio of 2.16 and a beta of 0.86. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.49 and a current ratio of 2.35. The business has a 50 day moving average price of $144.59 and a 200-day moving average price of $156.26.

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.