Zacks Investment Research downgraded shares of Mohawk Industries (NYSE:MHK) from a hold rating to a sell rating in a research note published on Tuesday morning.
According to Zacks, “Shares of Mohawk have declined 55.5% in a year's time and are unlikely to recover soon, post the company’s lower-than-expected third-quarter earnings. Earnings estimates for 2019 have also remained unchanged over the past 60 days, limiting upside potential for the stock. Input cost inflation, higher transportation costs, a stronger dollar and stringent labor market have been hurting the company’s performance. Additionally, changing product mix, timing of price increases, lower production units, start-up of new projects and the delayed Godfrey Hirst closing also added to the woes. Although Mohawk has plans to boost prices, expand in growing channels, introduce new products as well as foray into geographies to offset these ongoing headwinds, we wait for better visibility.”
MHK has been the topic of several other research reports. Jefferies Financial Group lowered shares of Mohawk Industries from a buy rating to a hold rating in a report on Friday, October 26th. Loop Capital set a $122.00 target price on shares of Mohawk Industries and gave the stock a hold rating in a report on Friday, October 26th. Nomura lowered their target price on shares of Mohawk Industries from $260.00 to $185.00 and set a buy rating on the stock in a report on Friday, October 26th. Raymond James lowered their target price on shares of Mohawk Industries from $215.00 to $195.00 and set a buy rating on the stock in a report on Wednesday, October 10th. Finally, Bank of America lowered shares of Mohawk Industries from a buy rating to an underperform rating and set a $137.00 target price on the stock. in a report on Monday, October 29th. Five equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $170.75.
MHK opened at $125.67 on Tuesday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.79 and a current ratio of 1.54. Mohawk Industries has a twelve month low of $109.35 and a twelve month high of $281.48. The stock has a market capitalization of $9.45 billion, a PE ratio of 9.23, a PEG ratio of 1.63 and a beta of 1.48.
Mohawk Industries (NYSE:MHK) last posted its earnings results on Thursday, October 25th. The company reported $3.29 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $3.58 by ($0.29). Mohawk Industries had a return on equity of 13.49% and a net margin of 8.81%. The firm had revenue of $2.55 billion during the quarter, compared to the consensus estimate of $2.61 billion. Analysts expect that Mohawk Industries will post 12.31 earnings per share for the current year.
Mohawk Industries announced that its Board of Directors has approved a share repurchase program on Thursday, October 25th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 4.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.
In other Mohawk Industries news, insider Suzanne L. Helen sold 10,642 shares of the stock in a transaction dated Monday, November 26th. The shares were sold at an average price of $128.83, for a total transaction of $1,371,008.86. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Rodney David Patton sold 763 shares of the stock in a transaction dated Tuesday, December 4th. The stock was sold at an average price of $125.27, for a total transaction of $95,581.01. The disclosure for this sale can be found here. In the last three months, insiders have acquired 468,744 shares of company stock worth $56,068,149. Insiders own 16.80% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc boosted its stake in shares of Mohawk Industries by 0.5% in the 3rd quarter. Vanguard Group Inc now owns 6,421,024 shares of the company’s stock valued at $1,125,927,000 after purchasing an additional 29,538 shares during the last quarter. Select Equity Group L.P. boosted its stake in shares of Mohawk Industries by 20.6% in the 2nd quarter. Select Equity Group L.P. now owns 1,959,024 shares of the company’s stock valued at $419,760,000 after purchasing an additional 334,869 shares during the last quarter. First Pacific Advisors LP bought a new position in shares of Mohawk Industries in the 3rd quarter valued at about $277,086,000. Wells Fargo & Company MN boosted its stake in shares of Mohawk Industries by 16.2% in the 3rd quarter. Wells Fargo & Company MN now owns 1,273,539 shares of the company’s stock valued at $223,315,000 after purchasing an additional 177,109 shares during the last quarter. Finally, Northern Trust Corp boosted its stake in shares of Mohawk Industries by 1.0% in the 2nd quarter. Northern Trust Corp now owns 701,234 shares of the company’s stock valued at $150,253,000 after purchasing an additional 6,836 shares during the last quarter. 78.25% of the stock is currently owned by institutional investors.
Mohawk Industries Company Profile
Mohawk Industries, Inc designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces worldwide. It operates through three segments: Global Ceramic, Flooring North America (Flooring NA), and Flooring Rest of the World (Flooring ROW).
Further Reading: How to interpret a stock’s beta number
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Mohawk Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mohawk Industries and related companies with MarketBeat.com's FREE daily email newsletter.