Patrick Industries (PATK) Shares Up 5.6% on Better-Than-Expected Earnings

Patrick Industries, Inc. (NASDAQ:PATK)’s share price shot up 5.6% on Thursday following a better than expected earnings announcement. The company traded as high as $68.65 and last traded at $68.05. 526,731 shares traded hands during mid-day trading, an increase of 89% from the average session volume of 278,332 shares. The stock had previously closed at $64.45.

The construction company reported $0.87 earnings per share for the quarter, topping analysts’ consensus estimates of $0.73 by $0.14. The company had revenue of $475.57 million during the quarter, compared to analyst estimates of $415.87 million. Patrick Industries had a return on equity of 24.60% and a net margin of 4.73%. Patrick Industries’s revenue was up 46.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.59 earnings per share.

Patrick Industries announced that its board has authorized a share repurchase program on Tuesday, January 30th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the construction company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

A number of research firms have weighed in on PATK. BidaskClub lowered Patrick Industries from a “buy” rating to a “hold” rating in a report on Thursday, January 18th. ValuEngine upgraded Patrick Industries from a “hold” rating to a “buy” rating in a report on Monday, December 11th. Zacks Investment Research lowered Patrick Industries from a “buy” rating to a “hold” rating in a report on Wednesday. Bank of America upped their target price on Patrick Industries from $56.67 to $62.00 and gave the stock a “buy” rating in a report on Tuesday, October 24th. Finally, Wells Fargo & Co restated a “market perform” rating and set a $66.00 target price (down previously from $90.00) on shares of Patrick Industries in a report on Thursday, December 14th. One research analyst has rated the stock with a hold rating and six have given a buy rating to the stock. The company presently has a consensus rating of “Buy” and an average price target of $73.60.

In other news, Director Joseph M. Cerulli sold 3,223 shares of the company’s stock in a transaction on Wednesday, December 6th. The stock was sold at an average price of $97.64, for a total transaction of $314,693.72. Following the transaction, the director now directly owns 25,237 shares of the company’s stock, valued at $2,464,140.68. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, EVP Jeff Rodino sold 3,511 shares of the company’s stock in a transaction on Monday, December 4th. The stock was sold at an average price of $102.22, for a total value of $358,894.42. Following the transaction, the executive vice president now directly owns 75,315 shares in the company, valued at $7,698,699.30. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 25,234 shares of company stock worth $2,485,568. Insiders own 5.20% of the company’s stock.

Hedge funds have recently modified their holdings of the company. BlackRock Inc. increased its position in shares of Patrick Industries by 53.7% in the 4th quarter. BlackRock Inc. now owns 2,975,758 shares of the construction company’s stock valued at $206,667,000 after acquiring an additional 1,039,798 shares during the period. Gendell Jeffrey L increased its position in shares of Patrick Industries by 41.2% in the 4th quarter. Gendell Jeffrey L now owns 1,232,158 shares of the construction company’s stock valued at $85,573,000 after acquiring an additional 359,661 shares during the period. Vanguard Group Inc. increased its position in shares of Patrick Industries by 3.2% in the 2nd quarter. Vanguard Group Inc. now owns 812,130 shares of the construction company’s stock valued at $59,164,000 after acquiring an additional 24,830 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Patrick Industries by 0.3% in the 3rd quarter. Dimensional Fund Advisors LP now owns 675,042 shares of the construction company’s stock valued at $56,771,000 after acquiring an additional 2,083 shares during the period. Finally, Goldman Sachs Group Inc. increased its position in shares of Patrick Industries by 10.9% in the 4th quarter. Goldman Sachs Group Inc. now owns 504,262 shares of the construction company’s stock valued at $35,021,000 after acquiring an additional 49,516 shares during the period. 61.29% of the stock is currently owned by institutional investors and hedge funds.

The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.00 and a current ratio of 2.23. The company has a market cap of $1,583.36, a PE ratio of 22.12, a PEG ratio of 1.31 and a beta of 0.84.

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Patrick Industries Company Profile

Patrick Industries, Inc is a manufacturer of component products and distributor of building products and materials for the recreational vehicle (RV) and manufactured housing (MH) industrial markets for customers throughout the United States and Canada. In addition, it is a supplier to certain other industrial markets, such as kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets.

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