Stock Price & Analysis

Based on the analysis of HWKN's current price trends, technical indicators, and market sentiment, it is currently in a neutral to slightly bearish position. The stock is trading near its Fibonacci pivot level of 105, with resistance at 108.60 and support at 101.40. While the bearish thesis suggests a potential 25-30% downside due to high valuation, the insider buying activity and strong water treatment segment growth provide some stability.

Considering the technical indicators and market sentiment, it may be prudent to hold or wait for a more favorable entry point rather than buying or selling at the current price.

The price prediction for HWKN stock in 2025 is around $105 to $115, driven by its strong position in the growing water treatment segment and current technical indicators showing a potential range-bound movement. The stock's high valuation and recent insider buying activity suggest cautious optimism.

The S1 support level for HWKN Stock is $102.29 ,The R1 resistant level for HWKN Stock is $108.84.

As of the end of day on 2025-03-24, the price of HWKN Stock was $108.34.

The target price for HWKN Stock according to analyst rating is 122.00, with the highest price target at 122.00 and the lowest at 122.00. Analysts have a Hold rating on HWKN Stock overall.

The market cap of HWKN is $2.3B.

Analysis and Insights

Valuation Metrics:

Hawkins Inc. (HWKN) currently exhibits elevated valuation metrics. The forward P/E ratio exceeds 30x, and the EV/EBITDA ratio is approximately 18.29, both of which are significantly higher than industry averages. The price-to-sales (P/S) ratio of 5.88 and price-to-book (P/B) ratio of 6.2 further indicate a premium valuation relative to its peers.

Financial Performance:

While Hawkins has demonstrated revenue growth, with total revenue increasing to $226.21 million in the latest quarter, net income has shown variability. The gross margin has remained stable at around 24%, reflecting consistent operational efficiency. However, the high valuation metrics raise concerns about sustainability.

Bearish Sentiment and Analyst Outlook:

A bearish analysis suggests Hawkins is overvalued, with a potential downside of 25-30%. This is supported by a discounted cash flow (DCF) analysis indicating a target price of $97, significantly below the current stock price. While insider transactions show some buying activity, the purchases were at lower prices, suggesting limited confidence at current valuation levels.

Conclusion:

Given the elevated valuation metrics, fluctuating net income, and bearish analyst sentiment, Hawkins Inc. appears overvalued. Investors should exercise caution and consider waiting for a more favorable entry point before investing.

Hawkins, Inc. is a specialty chemical and ingredients company that formulates, distributes, blends and manufactures products for its customers. The Company operates through three segments: Industrial, Water Treatment, and Health and Nutrition. Its Industrial segment specializes in providing industrial chemicals, products and services to industries such as agriculture, chemical processing, electronics, energy, food, pharmaceutical and plating. The Water Treatment segment specializes in providing chemicals, equipment and solutions for potable water, municipal and industrial wastewater, industrial process water, non-residential swimming pool water and agricultural water. The Health and Nutrition segment specializes in providing ingredient distribution, processing and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, health and wellness products.

Price Prediction for HWKN Stock by 2030

Based on current trends and analysis, HWKN stock is projected to reach $150 by 2030, driven by strong growth in its water treatment segment and strategic acquisitions. However, if market conditions deteriorate, the stock could drop to $97, reflecting a 25-30% downside due to stretched valuations.

HWKN has a total of 846 employees.