Mohawk Industries (NYSE:MHK) Shares Gap Down – Here’s Why

Mohawk Industries, Inc. (NYSE:MHK)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $161.25, but opened at $155.00. Mohawk Industries shares last traded at $153.65, with a volume of 130,730 shares trading hands.

Analyst Ratings Changes

MHK has been the topic of a number of research reports. Loop Capital lifted their price objective on Mohawk Industries from $145.00 to $185.00 and gave the stock a “buy” rating in a research note on Monday, July 29th. Royal Bank of Canada increased their price target on shares of Mohawk Industries from $108.00 to $140.00 and gave the company a “sector perform” rating in a report on Monday, July 29th. Wells Fargo & Company raised Mohawk Industries from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $140.00 to $160.00 in a research note on Monday, October 7th. The Goldman Sachs Group raised their price objective on Mohawk Industries from $141.00 to $185.00 and gave the company a “buy” rating in a research note on Monday, July 29th. Finally, JPMorgan Chase & Co. lifted their target price on Mohawk Industries from $124.00 to $155.00 and gave the stock a “neutral” rating in a report on Friday, August 2nd. Five analysts have rated the stock with a hold rating, seven have issued a buy rating and two have given a strong buy rating to the company. According to MarketBeat, Mohawk Industries presently has a consensus rating of “Moderate Buy” and a consensus price target of $166.25.

Mohawk Industries Stock Down 0.8 %

The company has a current ratio of 1.92, a quick ratio of 1.04 and a debt-to-equity ratio of 0.22. The business has a 50-day moving average price of $154.76 and a 200-day moving average price of $133.48. The firm has a market cap of $9.69 billion, a P/E ratio of -23.20, a P/E/G ratio of 1.23 and a beta of 1.37.

Mohawk Industries (NYSE:MHK) last issued its earnings results on Thursday, July 25th. The company reported $3.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.75 by $0.25. Mohawk Industries had a negative net margin of 3.30% and a positive return on equity of 8.07%. The company had revenue of $2.80 billion for the quarter, compared to analysts’ expectations of $2.84 billion. During the same period in the prior year, the business earned $2.76 EPS. The firm’s quarterly revenue was down 5.1% on a year-over-year basis. On average, equities analysts forecast that Mohawk Industries, Inc. will post 10 EPS for the current fiscal year.

Insider Activity

In related news, VP Rodney David Patton sold 755 shares of the business’s stock in a transaction that occurred on Monday, July 29th. The shares were sold at an average price of $162.78, for a total value of $122,898.90. Following the completion of the transaction, the vice president now owns 12,299 shares of the company’s stock, valued at $2,002,031.22. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. In related news, insider Suzanne L. Helen sold 2,300 shares of the stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $151.15, for a total transaction of $347,645.00. Following the completion of the sale, the insider now owns 119,369 shares of the company’s stock, valued at $18,042,624.35. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Rodney David Patton sold 755 shares of the firm’s stock in a transaction that occurred on Monday, July 29th. The shares were sold at an average price of $162.78, for a total transaction of $122,898.90. Following the completion of the sale, the vice president now owns 12,299 shares of the company’s stock, valued at approximately $2,002,031.22. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 4,415 shares of company stock worth $673,387. Corporate insiders own 17.10% of the company’s stock.

Institutional Trading of Mohawk Industries

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its stake in Mohawk Industries by 0.3% in the first quarter. Vanguard Group Inc. now owns 6,257,677 shares of the company’s stock valued at $819,067,000 after buying an additional 17,541 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Mohawk Industries by 10.7% during the second quarter. Dimensional Fund Advisors LP now owns 3,036,545 shares of the company’s stock valued at $344,903,000 after acquiring an additional 292,661 shares in the last quarter. Select Equity Group L.P. raised its position in shares of Mohawk Industries by 8.5% in the 2nd quarter. Select Equity Group L.P. now owns 1,702,440 shares of the company’s stock valued at $193,380,000 after purchasing an additional 132,879 shares during the last quarter. Pacer Advisors Inc. boosted its stake in Mohawk Industries by 42.9% in the 2nd quarter. Pacer Advisors Inc. now owns 1,200,360 shares of the company’s stock worth $136,349,000 after purchasing an additional 360,628 shares in the last quarter. Finally, Brandes Investment Partners LP increased its stake in Mohawk Industries by 10.5% during the 2nd quarter. Brandes Investment Partners LP now owns 1,015,640 shares of the company’s stock valued at $115,057,000 after purchasing an additional 96,174 shares in the last quarter. Hedge funds and other institutional investors own 78.98% of the company’s stock.

About Mohawk Industries

Mohawk Industries, Inc designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World.