Mohawk Industries (MHK) Downgraded to Hold at Zacks Investment Research
Mohawk Industries (NYSE:MHK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Although Mohawk’s shares have slightly outperformed the industry so far this year, earnings estimates for the current quarter and year have increased over the last 60 days reflecting an upside potential of the stock. Further, the company’s improved pricing will continue to benefit margins. It is to be noted that, Mohawk continues to enjoys a leading position in the home furnishings industry and has completed four strategic acquisitions this year that broadened its product portfolio. The company is looking to explore investment options for expansion and acquisitions to widen its geographic presence and product offerings. However, higher costs and currency headwinds continue to impede growth.”
Several other research firms also recently issued reports on MHK. Jefferies Group began coverage on Mohawk Industries in a research note on Tuesday, December 12th. They issued a “buy” rating and a $330.00 price target on the stock. ValuEngine raised Mohawk Industries from a “hold” rating to a “buy” rating in a research note on Sunday, December 31st. Barclays lifted their price target on Mohawk Industries from $285.00 to $301.00 and gave the company an “overweight” rating in a research note on Monday, October 30th. JPMorgan Chase & Co. lifted their price target on Mohawk Industries from $250.00 to $285.00 and gave the company a “neutral” rating in a research note on Monday, October 30th. Finally, Royal Bank of Canada reissued an “outperform” rating and issued a $300.00 price target (up previously from $291.00) on shares of Mohawk Industries in a research note on Monday, October 30th. Four analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. Mohawk Industries presently has a consensus rating of “Buy” and a consensus price target of $292.83.
Mohawk Industries (NYSE:MHK) last released its quarterly earnings results on Thursday, October 26th. The company reported $3.75 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $3.74 by $0.01. Mohawk Industries had a return on equity of 16.03% and a net margin of 10.37%. The firm had revenue of $2.45 billion for the quarter, compared to the consensus estimate of $2.46 billion. During the same quarter last year, the business posted $3.50 EPS. The company’s revenue for the quarter was up 6.7% on a year-over-year basis. research analysts expect that Mohawk Industries will post 13.52 EPS for the current year.
Several large investors have recently added to or reduced their stakes in MHK. Pacer Advisors Inc. increased its position in shares of Mohawk Industries by 9.2% in the second quarter. Pacer Advisors Inc. now owns 1,382 shares of the company’s stock valued at $334,000 after acquiring an additional 116 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. bought a new position in Mohawk Industries during the second quarter worth about $1,115,000. Commonwealth Bank of Australia grew its holdings in Mohawk Industries by 21.2% during the second quarter. Commonwealth Bank of Australia now owns 5,122 shares of the company’s stock worth $1,237,000 after purchasing an additional 897 shares during the period. CIBC World Markets Inc. grew its holdings in Mohawk Industries by 2.2% during the second quarter. CIBC World Markets Inc. now owns 5,396 shares of the company’s stock worth $1,304,000 after purchasing an additional 114 shares during the period. Finally, Eaton Vance Management bought a new position in Mohawk Industries during the second quarter worth about $682,000. 76.52% of the stock is currently owned by institutional investors and hedge funds.
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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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