Mohawk Industries, Inc. (MHK) Downgraded by Zacks Investment Research to “Sell”
Mohawk Industries, Inc. (NYSE:MHK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Mohawk’s shares have underperformed its industry in the last six months. Earnings estimate for the current quarter and year have also declined by 0.5% and 0.1% respectively, over the last 30 days. Currency translation is a major concern as Mohawk generates almost one-third of its revenues from customers outside the United States. Currency headwinds hurt sales in 2016 by $69 million and in 2015 by $490 million. Despite the fact that the unfavorable currency impact has lessened, and is expected to improve through the rest of 2017, the net impact of currency headwinds still remains significant. Though, the company is currently exploring numerous investment options for expansion, including Greenfield opportunities and acquisitions to broaden its geographic presence and product portfolio, we await better visibility.”
A number of other research firms have also recently weighed in on MHK. ValuEngine raised Mohawk Industries from a “hold” rating to a “buy” rating in a report on Friday, September 8th. Northcoast Research began coverage on Mohawk Industries in a report on Thursday, October 5th. They set a “buy” rating and a $295.00 price target on the stock. Cleveland Research cut Mohawk Industries from a “buy” rating to a “neutral” rating in a report on Friday, September 22nd. MKM Partners reaffirmed a “buy” rating and set a $286.00 price target (up previously from $255.00) on shares of Mohawk Industries in a report on Wednesday, August 2nd. Finally, Royal Bank Of Canada reaffirmed a “buy” rating and set a $291.00 price target on shares of Mohawk Industries in a report on Monday, July 31st. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and twelve have given a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $270.33.
Mohawk Industries (NYSE MHK) traded down 0.74% during trading on Tuesday, reaching $254.83. The company’s stock had a trading volume of 443,667 shares. The stock’s market capitalization is $18.94 billion. The firm has a 50 day moving average of $251.97 and a 200 day moving average of $242.39. Mohawk Industries has a 52 week low of $175.52 and a 52 week high of $259.91.
Mohawk Industries (NYSE:MHK) last released its quarterly earnings results on Thursday, July 27th. The company reported $3.72 earnings per share for the quarter, beating the Zacks’ consensus estimate of $3.60 by $0.12. The company had revenue of $2.45 billion for the quarter, compared to analysts’ expectations of $2.45 billion. Mohawk Industries had a return on equity of 16.45% and a net margin of 10.54%. The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.47 earnings per share. Analysts expect that Mohawk Industries will post $13.50 EPS for the current year.
In other Mohawk Industries news, Chairman Jeffrey S. Lorberbaum sold 19,700 shares of Mohawk Industries stock in a transaction that occurred on Tuesday, September 5th. The shares were sold at an average price of $254.95, for a total value of $5,022,515.00. Following the transaction, the chairman now owns 21,396 shares in the company, valued at $5,454,910.20. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, VP Rodney David Patton sold 137 shares of Mohawk Industries stock in a transaction that occurred on Friday, August 11th. The stock was sold at an average price of $246.78, for a total transaction of $33,808.86. Following the completion of the transaction, the vice president now owns 6,924 shares in the company, valued at approximately $1,708,704.72. The disclosure for this sale can be found here. 17.00% of the stock is owned by insiders.
A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its position in Mohawk Industries by 3.3% in the second quarter. Vanguard Group Inc. now owns 6,184,173 shares of the company’s stock worth $1,494,654,000 after buying an additional 196,996 shares during the last quarter. JPMorgan Chase & Co. grew its position in Mohawk Industries by 8.9% in the second quarter. JPMorgan Chase & Co. now owns 5,029,444 shares of the company’s stock worth $1,215,567,000 after buying an additional 412,942 shares during the last quarter. BlackRock Inc. grew its position in Mohawk Industries by 5.8% in the second quarter. BlackRock Inc. now owns 4,575,453 shares of the company’s stock worth $1,105,842,000 after buying an additional 250,944 shares during the last quarter. FMR LLC grew its position in Mohawk Industries by 3.9% in the second quarter. FMR LLC now owns 2,796,757 shares of the company’s stock worth $675,948,000 after buying an additional 105,920 shares during the last quarter. Finally, Principal Financial Group Inc. grew its position in Mohawk Industries by 0.3% in the second quarter. Principal Financial Group Inc. now owns 1,211,095 shares of the company’s stock worth $292,710,000 after buying an additional 4,001 shares during the last quarter. Hedge funds and other institutional investors own 76.93% of the company’s stock.
Mohawk Industries Company Profile
Mohawk Industries, Inc is a flooring manufacturer that creates products for residential and commercial spaces around the world. The Company’ segments include Global Ceramic, Flooring North America (Flooring NA) and Flooring Rest of the World (Flooring ROW). Its manufacturing and distribution processes provide carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile and vinyl flooring.
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