Zacks Investment Research Downgrades Mohawk Industries (MHK) to Hold

Mohawk Industries (NYSE:MHK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.

According to Zacks, “Mohawk 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 on track to explore numerous investment options for expansion and buyouts to broaden its footprint and product portfolio. Overall, 2018 will be a transition year for Mohawk as the company poised to benefit from the large amounts of capacity brought in 2017. However, rising commodity prices continue to be a cause of concern. Though Mohawk’s shares have underperformed the industry in the past year, earnings estimates have increased over the last 60 days, reflecting analysts’ optimism in the stock.”

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MHK has been the topic of a number of other research reports. Credit Suisse Group reaffirmed an “outperform” rating and issued a $310.00 price target (up previously from $303.00) on shares of Mohawk Industries in a research report on Monday, January 22nd. They noted that the move was a valuation call. ValuEngine lowered Mohawk Industries from a “buy” rating to a “hold” rating in a research report on Thursday, February 15th. Loop Capital started coverage on Mohawk Industries in a research report on Thursday, March 1st. They set a “hold” rating and a $261.00 target price on the stock. Robert W. Baird cut their target price on Mohawk Industries from $312.00 to $300.00 and set an “outperform” rating on the stock in a research report on Monday, February 12th. Finally, Longbow Research raised Mohawk Industries from a “neutral” rating to a “buy” rating in a research report on Monday, February 12th. Six research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average target price of $290.73.



MHK opened at $235.57 on Friday. Mohawk Industries has a 12-month low of $223.99 and a 12-month high of $286.85. The company has a current ratio of 1.53, a quick ratio of 0.80 and a debt-to-equity ratio of 0.22. The stock has a market cap of $17,935.04, a P/E ratio of 17.31, a PEG ratio of 1.69 and a beta of 1.36.

Mohawk Industries (NYSE:MHK) last posted its earnings results on Thursday, February 8th. The company reported $3.42 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $3.32 by $0.10. Mohawk Industries had a return on equity of 15.44% and a net margin of 10.24%. The firm had revenue of $2.37 billion for the quarter, compared to analyst estimates of $2.36 billion. During the same quarter in the prior year, the company earned $3.26 EPS. Mohawk Industries’s revenue was up 8.5% on a year-over-year basis. equities analysts forecast that Mohawk Industries will post 15.65 earnings per share for the current year.

In other Mohawk Industries news, CFO Frank H. Boykin sold 1,032 shares of Mohawk Industries stock in a transaction that occurred on Monday, March 12th. The stock was sold at an average price of $247.58, for a total value of $255,502.56. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Frank H. Boykin sold 1,388 shares of Mohawk Industries stock in a transaction that occurred on Wednesday, March 14th. The shares were sold at an average price of $248.26, for a total value of $344,584.88. Following the completion of the transaction, the chief financial officer now owns 17,505 shares in the company, valued at $4,345,791.30. The disclosure for this sale can be found here. Insiders have sold a total of 34,595 shares of company stock worth $8,603,365 in the last 90 days. 16.80% of the stock is currently owned by company insiders.

Several hedge funds have recently made changes to their positions in MHK. Standard Life Aberdeen plc grew its stake in shares of Mohawk Industries by 5,674.0% in the 4th quarter. Standard Life Aberdeen plc now owns 895,139 shares of the company’s stock valued at $246,982,000 after purchasing an additional 879,636 shares during the last quarter. BlackRock Inc. grew its stake in shares of Mohawk Industries by 10.4% in the 4th quarter. BlackRock Inc. now owns 5,046,157 shares of the company’s stock valued at $1,392,234,000 after purchasing an additional 477,056 shares during the last quarter. KAMES CAPITAL plc grew its stake in shares of Mohawk Industries by 1,816.2% in the 4th quarter. KAMES CAPITAL plc now owns 215,529 shares of the company’s stock valued at $59,467,000 after purchasing an additional 204,281 shares during the last quarter. Wells Fargo & Company MN grew its stake in shares of Mohawk Industries by 16.2% in the 4th quarter. Wells Fargo & Company MN now owns 1,013,789 shares of the company’s stock valued at $279,705,000 after purchasing an additional 141,022 shares during the last quarter. Finally, Tide Point Capital Management LP purchased a new position in shares of Mohawk Industries in the 4th quarter valued at approximately $38,055,000. Institutional investors own 78.52% of the company’s stock.

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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).

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