Mohawk Industries (NYSE:MHK) Lowered to Sell at Zacks Investment Research

Mohawk Industries (NYSE:MHK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday, Zacks.com reports. They presently have a $136.00 price target on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 2.63% from the company’s current price.

According to Zacks, “Mohawk’s shares have outperformed its industry in the past year. The company’s dominant market share in the highly fragmented and competitive industry, acquisition strategy, and strong international presence are expected to drive growth. The firm is streamlining operations, merging facilities and removing higher-cost assets to combat cost woes. It has been maintaining production rates, introducing new products and increasing promotions to address the ever-changing market needs. However, softness across the markets served (mainly U.S. businesses), and pressure on volumes and pricing are major headwinds. Also, input cost inflation, higher transportation expenses and a stronger dollar are pressing concerns for Mohawk. Estimates for 2020 moved south over the past 60 days, depicting analysts' concern over the stock.”

Several other research firms have also recently weighed in on MHK. ValuEngine upgraded shares of Mohawk Industries from a “sell” rating to a “hold” rating in a research report on Friday. Cfra upgraded shares of Mohawk Industries from a “sell” rating to a “hold” rating in a research report on Tuesday, December 17th. Robert W. Baird upped their price objective on shares of Mohawk Industries from $150.00 to $168.00 and gave the stock an “outperform” rating in a research report on Monday, October 28th. Raymond James decreased their price objective on shares of Mohawk Industries from $145.00 to $140.00 and set an “outperform” rating on the stock in a research report on Tuesday, October 22nd. Finally, Wells Fargo & Co lowered Mohawk Industries from a “market perform” rating to an “underperform” rating and set a $110.00 target price for the company. in a research note on Monday, October 14th. Three analysts have rated the stock with a sell rating, six have issued a hold rating and eight have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $145.14.

Shares of MHK stock traded up $2.60 during trading on Tuesday, hitting $132.52. The company had a trading volume of 42,166 shares, compared to its average volume of 458,400. The company has a quick ratio of 0.77, a current ratio of 1.52 and a debt-to-equity ratio of 0.22. The stock’s 50-day moving average is $135.29 and its two-hundred day moving average is $132.46. The stock has a market capitalization of $9.10 billion, a price-to-earnings ratio of 10.75, a price-to-earnings-growth ratio of 1.60 and a beta of 1.29. Mohawk Industries has a 52 week low of $108.93 and a 52 week high of $156.60.

Mohawk Industries (NYSE:MHK) last posted its quarterly earnings data on Thursday, October 24th. The company reported $2.75 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $2.64 by $0.11. The company had revenue of $2.50 billion for the quarter, compared to analysts’ expectations of $2.51 billion. Mohawk Industries had a net margin of 7.09% and a return on equity of 9.82%. Mohawk Industries’s revenue for the quarter was down 1.8% compared to the same quarter last year. During the same period in the prior year, the business earned $3.29 earnings per share. On average, research analysts predict that Mohawk Industries will post 9.97 EPS for the current fiscal year.

In other news, insider Cock Paul F. De sold 1,489 shares of the stock in a transaction that occurred on Monday, October 28th. The stock was sold at an average price of $145.14, for a total transaction of $216,113.46. Following the completion of the sale, the insider now owns 24,260 shares of the company’s stock, valued at $3,521,096.40. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Jeffrey S. Lorberbaum sold 10,600 shares of the stock in a transaction that occurred on Friday, November 1st. The shares were sold at an average price of $142.64, for a total value of $1,511,984.00. Following the sale, the chief executive officer now directly owns 47,603 shares of the company’s stock, valued at approximately $6,790,091.92. The disclosure for this sale can be found here. In the last ninety days, insiders sold 45,405 shares of company stock valued at $6,703,341. 18.00% of the stock is owned by insiders.

Several large investors have recently added to or reduced their stakes in the company. First Hawaiian Bank boosted its stake in shares of Mohawk Industries by 29.0% during the fourth quarter. First Hawaiian Bank now owns 2,251 shares of the company’s stock valued at $307,000 after purchasing an additional 506 shares during the period. Triad Investment Management boosted its stake in shares of Mohawk Industries by 3.4% during the fourth quarter. Triad Investment Management now owns 25,735 shares of the company’s stock valued at $3,510,000 after purchasing an additional 838 shares during the period. Douglass Winthrop Advisors LLC boosted its stake in shares of Mohawk Industries by 1.1% during the fourth quarter. Douglass Winthrop Advisors LLC now owns 489,028 shares of the company’s stock valued at $66,694,000 after purchasing an additional 5,328 shares during the period. Contravisory Investment Management Inc. purchased a new stake in shares of Mohawk Industries during the fourth quarter valued at approximately $371,000. Finally, Accurate Investment Solutions Inc. purchased a new stake in shares of Mohawk Industries during the fourth quarter valued at approximately $125,000. 79.56% of the stock is owned by hedge funds and other institutional investors.

About Mohawk Industries

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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