It took it little longer than we anticipated, but Patrick Industries Inc. (NMS:PATK) finally made a nice move to the upside on Tuesday, soaring on an acquisition and upgrade.  In our May 20, 2015 email when the stock was trading at $39.71 and via premium tweet on June 9, 2015 when the stock was trading at $37.25 we stated we had nibbled at shares as the stock pulled back off highs despite reporting very strong Q1 2015 results.

Patrick Industries New 52-Week High

Tuesday, shares of PATK  closed up 12% after hitting a new 52 week high of $44.95* on the heels of completing the acquisition of North American Forest Products and an upgrade to “strong buy” by CL King with a price target of $51.00.  The acquisition of North American Forest Products will add roughly $165 million in revenue and be immediately accretive to earnings.  Current estimates have PATK earnings at $2.49 EPS in 2015 and $3.18 EPS in 2016.  We are currently reviewing analyst estimates to see if they fully reflect the recent acquisition.  We are still long PATK and plan to provide our updates to our premium members regarding our investment as we garner more color on the company’s current story.

At its peak, PATK has so far yielded a 13% return.

*Some sites list $64.88 as the 52-week high for PATK, but this seems to have been a bad print.