Hawkins (NASDAQ:HWKN) Shares Gap Up Following Strong Earnings

Hawkins, Inc. (NASDAQ:HWKN)’s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $135.44, but opened at $156.24. Hawkins shares last traded at $151.6660, with a volume of 53,712 shares traded.

The specialty chemicals company reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.19 by $0.15. Hawkins had a net margin of 7.29% and a return on equity of 15.42%. The firm had revenue of $313.82 million for the quarter, compared to the consensus estimate of $302.70 million.

Hawkins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Wednesday, November 11th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Wednesday, November 11th. This is a positive change from Hawkins’s previous quarterly dividend of $0.19. This represents a $0.80 annualized dividend and a yield of 0.5%. Hawkins’s payout ratio is presently 20.73%.

Key Headlines Impacting Hawkins

Here are the key news stories impacting Hawkins this week:

• Positive Sentiment: Quarterly earnings beat estimates. Fiscal Q2 2027 earnings were $1.34 per share, up from $1.08 a year earlier and ahead of the $1.19–$1.22 analyst consensus. Revenue reached approximately $313.8 million, rising 11.9% year over year and exceeding estimates near $302.7 million. Hawkins Fiscal 2027 Second-Quarter Results
• Positive Sentiment: Profitability and cash generation improved. Gross profit increased to $76.6 million, operating profit reached $41.9 million, and net income attributable to common shareholders rose to $27.8 million. Operating cash flow was $40.3 million, while total liabilities declined, reinforcing the quality of the earnings growth. Hawkins Stock Rises on Q2 Earnings
• Positive Sentiment: Dividend increased. Hawkins declared a quarterly dividend of $0.20 per share, up 5.3% from $0.19, payable November 25 to shareholders of record on November 11. The annualized payout is $0.80 per share, although the yield remains modest at approximately 0.6%. Hawkins Dividend Announcement
• Neutral Sentiment: Valuation remains elevated. At roughly 35 times earnings and with the stock below its 200-day moving average, investors may expect continued execution and earnings growth. The company’s solid liquidity and moderate debt-to-equity ratio provide some financial support, but valuation could limit further upside if growth slows.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on HWKN. Barclays set a $141.00 target price on Hawkins and gave the stock an “equal weight” rating in a report on Tuesday, October 13th. BWS Financial reiterated a “buy” rating and set a $200.00 target price on shares of Hawkins in a research note on Monday, August 3rd. Zacks Research cut shares of Hawkins from a “hold” rating to a “strong sell” rating in a research note on Tuesday, August 4th. Finally, Weiss Ratings raised shares of Hawkins from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, September 21st. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $170.50.

Insider Activity

In other news, VP Douglas A. Lange acquired 910 shares of Hawkins stock in a transaction on Tuesday, August 25th. The stock was bought at an average price of $118.75 per share, for a total transaction of $108,062.50. Following the transaction, the vice president owned 28,169 shares of the company’s stock, valued at $3,345,068.75. The trade was a 3.34% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Jeffrey P. Oldenkamp acquired 1,290 shares of the firm’s stock in a transaction dated Thursday, August 27th. The shares were purchased at an average cost of $119.00 per share, for a total transaction of $153,510.00. Following the acquisition, the chief financial officer directly owned 104,223 shares in the company, valued at $12,402,537. This represents a 1.25% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 3.70% of the company’s stock.

Institutional Trading of Hawkins

A number of institutional investors and hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. bought a new position in Hawkins in the second quarter worth $37,000. USA Financial Formulas acquired a new position in shares of Hawkins in the 3rd quarter valued at $37,000. GK Wealth Management LLC acquired a new position in shares of Hawkins in the 3rd quarter valued at $63,000. Curry Webb Wealth Management LLC bought a new position in shares of Hawkins during the 3rd quarter worth about $77,000. Finally, Sterling Capital Management LLC lifted its holdings in shares of Hawkins by 842.0% during the 3rd quarter. Sterling Capital Management LLC now owns 650 shares of the specialty chemicals company’s stock worth $82,000 after acquiring an additional 581 shares during the period. 69.71% of the stock is currently owned by institutional investors.

Hawkins Stock Up 11.5%

The company has a current ratio of 2.27, a quick ratio of 1.54 and a debt-to-equity ratio of 0.45. The business’s fifty day moving average price is $126.44 and its 200 day moving average price is $143.14. The company has a market capitalization of $3.15 billion, a P/E ratio of 39.17, a P/E/G ratio of 2.71 and a beta of 0.74.

Hawkins Company Profile

Hawkins, Inc (NASDAQ:HWKN) is a chemical manufacturer, blender and distributor serving customers across the United States. The company supplies a range of water treatment chemicals, industrial chemicals and specialty products to municipal, commercial and industrial users.

Its water treatment business provides chemicals and related solutions used in drinking water, wastewater and industrial water treatment applications. Hawkins also serves the industrial, health and nutrition, and specialty chemical markets, offering products such as chemical blends, custom formulations and other materials used in manufacturing, agriculture, food processing and pharmaceutical applications.

Founded in 1938, Hawkins is headquartered in Roseville, Minnesota, and operates through a network of manufacturing, blending, distribution and sales locations in the United States.