Hillman Solutions: Strategic Positioning and Pricing Adjustments Mitigate Tariff Concerns

Canaccord Genuity analyst Brian McNamara has maintained their bullish stance on HLMN stock, giving a Buy rating on March 31.

Brian McNamara has given his Buy rating due to a combination of factors that suggest Hillman Solutions is well-positioned to handle current market challenges. Despite concerns about tariffs, McNamara believes these are exaggerated for Hillman Solutions, as the company has strategically reduced its reliance on Chinese production from 50% to 33% since 2017-2018. This shift reduces their exposure to the newly implemented tariffs on Chinese imports.
Furthermore, Hillman Solutions has a plan to manage the impact of tariffs by potentially adjusting pricing, similar to their successful strategy in 2018. The company’s guidance indicates a neutral pricing strategy for the year, with a slight decrease in the first half and a potential increase in the second half. McNamara is confident that the demand for Hillman’s products will remain stable due to their low price elasticity, and he believes the company’s proactive measures will mitigate any significant impact from tariffs.

In another report released on March 31, Jefferies also maintained a Buy rating on the stock with a $11.00 price target.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HLMN in relation to earlier this year.