Mohawk Industries, Inc. (MHK) Lowered to Sell at Zacks Investment Research
Mohawk Industries, Inc. (NYSE:MHK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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 0.8% and 0.3% respectively, over the last 60 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.”
MHK has been the topic of a number of other reports. MKM Partners restated a “buy” rating and set a $286.00 price objective (up from $255.00) on shares of Mohawk Industries in a research note on Wednesday, August 2nd. BidaskClub cut shares of Mohawk Industries from a “buy” rating to a “hold” rating in a research note on Sunday, July 30th. Northcoast Research assumed coverage on shares of Mohawk Industries in a research note on Thursday, October 5th. They set a “buy” rating and a $295.00 price objective on the stock. Instinet restated a “buy” rating and set a $288.00 price objective (up from $280.00) on shares of Mohawk Industries in a research note on Saturday, September 30th. Finally, Nomura restated a “buy” rating and set a $288.00 price objective (up from $280.00) on shares of Mohawk Industries in a research note on Thursday, September 28th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and eleven have given a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus target price of $273.55.
Mohawk Industries (NYSE:MHK) traded up 0.698% during trading on Tuesday, hitting $265.985. 331,990 shares of the stock were exchanged. The company’s market cap is $19.77 billion. The stock’s 50 day moving average is $254.79 and its 200-day moving average is $244.62. Mohawk Industries has a one year low of $175.52 and a one year high of $266.28.
Mohawk Industries (NYSE:MHK) last issued its quarterly earnings data on Thursday, July 27th. The company reported $3.72 earnings per share for the quarter, beating analysts’ consensus estimates of $3.60 by $0.12. Mohawk Industries had a net margin of 10.54% and a return on equity of 16.45%. The business had revenue of $2.45 billion for the quarter, compared to analysts’ expectations of $2.45 billion. During the same period in the previous year, the business earned $3.47 earnings per share. The company’s revenue was up 6.2% on a year-over-year basis. On average, equities research analysts expect that Mohawk Industries will post $13.49 earnings per share for the current fiscal year.
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In related news, Chairman Jeffrey S. Lorberbaum sold 19,700 shares of Mohawk Industries stock in a transaction dated Tuesday, September 5th. The stock was 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 of the company’s stock, valued at approximately $5,454,910.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Rodney David Patton sold 137 shares of Mohawk Industries stock in a transaction dated Friday, August 11th. The stock was sold at an average price of $246.78, for a total value of $33,808.86. Following the completion of the transaction, the vice president now directly 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 currently owned by insiders.
Institutional investors and hedge funds have recently modified their holdings of the stock. Sun Life Financial INC increased its stake in Mohawk Industries by 5,675.0% in the 2nd quarter. Sun Life Financial INC now owns 462 shares of the company’s stock worth $112,000 after purchasing an additional 454 shares in the last quarter. First Personal Financial Services increased its stake in Mohawk Industries by 6.6% in the 2nd quarter. First Personal Financial Services now owns 568 shares of the company’s stock worth $137,000 after purchasing an additional 35 shares in the last quarter. IFP Advisors Inc increased its stake in Mohawk Industries by 18.6% in the 2nd quarter. IFP Advisors Inc now owns 625 shares of the company’s stock worth $151,000 after purchasing an additional 98 shares in the last quarter. First Manhattan Co. purchased a new position in Mohawk Industries in the 2nd quarter worth about $160,000. Finally, Bridgewater Wealth & Financial Management LLC purchased a new position in Mohawk Industries in the 2nd quarter worth about $203,000. 76.80% of the stock is currently owned by hedge funds and other institutional investors.
About Mohawk Industries
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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