Hawkins (NASDAQ:HWKN) Shares Gap Up Following Better-Than-Expected Earnings

Hawkins, Inc. (NASDAQ:HWKN) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. 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.

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

Hawkins Increases Dividend

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

Hawkins News Roundup

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

Insider Transactions at Hawkins

In other news, CFO Jeffrey P. Oldenkamp bought 1,290 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was bought at an average cost of $119.00 per share, with a total value of $153,510.00. Following the transaction, the chief financial officer directly owned 104,223 shares in the company, valued at $12,402,537. The trade was a 1.25% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Douglas A. Lange acquired 910 shares of Hawkins stock in a transaction dated Tuesday, August 25th. The shares were bought at an average price of $118.75 per share, with a total value of $108,062.50. Following the transaction, the vice president directly owned 28,169 shares in the company, valued at approximately $3,345,068.75. The trade was a 3.34% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 3.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in HWKN. BlackRock Inc. acquired a new stake in Hawkins during the 2nd quarter valued at $449,055,000. Bowen Hanes & Co. Inc. raised its holdings in shares of Hawkins by 4.3% in the first quarter. Bowen Hanes & Co. Inc. now owns 380,520 shares of the specialty chemicals company’s stock worth $58,448,000 after acquiring an additional 15,550 shares during the last quarter. First Trust Advisors LP lifted its position in shares of Hawkins by 1.2% in the first quarter. First Trust Advisors LP now owns 186,761 shares of the specialty chemicals company’s stock valued at $28,686,000 after acquiring an additional 2,155 shares in the last quarter. William Blair Investment Management LLC purchased a new stake in shares of Hawkins in the second quarter valued at $27,212,000. Finally, London Co. of Virginia acquired a new stake in shares of Hawkins during the first quarter valued at $26,791,000. Institutional investors and hedge funds own 69.71% of the company’s stock.

Hawkins Trading Up 11.5%

The company has a quick ratio of 1.54, a current ratio of 2.27 and a debt-to-equity ratio of 0.45. The firm has a market cap of $3.15 billion, a price-to-earnings ratio of 39.17, a price-to-earnings-growth ratio of 2.71 and a beta of 0.74. The business has a 50 day moving average of $126.44 and a 200 day moving average of $143.14.

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.