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Patrick Industries , Inc. (NASDAQ:PATK), an Indiana-based manufacturer of motor vehicle parts and accessories with a market capitalization of $3.02 billion and current stock price of $90.06, disclosed in a recent SEC filing that it has granted stock options and Stock Appreciation Rights (SARs) to its top executives under the company’s 2009 Omnibus Incentive Plan. According to InvestingPro data, the company has demonstrated strong financial performance, maintaining a P/E ratio of 21.2 and consistently raising its dividend for six consecutive years. The announcement, filed on Monday, details the compensatory arrangements for certain officers, with the grants effective as of February 25, 2025.
The Chief Executive Officer of Patrick Industries, Andy L. Nemeth, received the largest allotment with 84,360 stock options and an equal number of SARs. Jeffrey M. Rodino, President of Recreational Vehicles, and Kip B. Ellis, President of Powersports, Technology & Housing, each were awarded 42,180 stock options and the same amount of SARs. Other executives, including the Executive Vice President — Finance, Chief Financial Officer & Treasurer Andrew C. Roeder, Senior Vice President — Finance & Chief Accounting Officer Matthew S. Filer, and Executive Vice President, Chief Legal Officer & Secretary Joel D. Duthie, also received smaller amounts of stock options and SARs.
The options granted allow the purchase of common stock at an exercise price of $92.72 per share and will vest pro-rata over the first four anniversaries of the grant date. These options have a nine-year contractual term. Similarly, the SARs are divided into four equal tranches, each vesting pro-rata on the first four anniversaries of the grant date, with strike prices ranging from $92.72 to $158.05 and also have a nine-year term.
This move is part of the company’s strategy to incentivize its executive team, aligning their interests with those of the shareholders by tying compensation to the company’s stock performance. InvestingPro analysis indicates the company maintains strong financial health with a current ratio of 2.33 and has delivered a positive return over the last decade. For detailed insights into PATK’s valuation and growth potential, investors can access comprehensive Pro Research Reports available exclusively on InvestingPro, covering this and 1,400+ other US equities. The filing, including the full details of the compensatory arrangements, was signed by Andrew C. Roeder, the company’s Executive Vice President - Finance, Chief Financial Officer, and Treasurer.
The information is based on a press release statement.
In other recent news, Patrick Industries reported a strong financial performance, with an 8% increase in fourth-quarter net sales to $846 million and a 7% rise in full-year net sales to $3.7 billion. The company also announced surpassing revenue expectations, while adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (AEBITDA) and adjusted Earnings Per Share (EPS) met consensus estimates. Patrick Industries’ strategic acquisitions, including Sportech and RecPro, have bolstered its presence in the Powersports market and contributed to its revenue growth. Benchmark analysts raised the company’s stock price target to $102, maintaining a Buy rating, citing confidence in its business outlook and strategic initiatives. Meanwhile, Truist Securities adjusted its price target to $105, also retaining a Buy rating, and highlighted potential for margin improvement as production stabilizes. BofA Securities increased its price target to $110, acknowledging the company’s robust acquisition pipeline as a key growth strategy, although it maintained an Underperform rating due to near-term challenges. KeyBanc Capital Markets reaffirmed an Overweight rating with a $150 price target, expressing confidence in Patrick Industries’ long-term growth opportunities through both organic means and mergers and acquisitions. These developments reflect a positive sentiment among analysts regarding Patrick Industries’ strategic direction and market potential.
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