Mohawk Industries (MHK) Lowered to Underperform at Royal Bank of Canada

Royal Bank of Canada lowered shares of Mohawk Industries (NYSE:MHK) from a sector perform rating to an underperform rating in a research report report published on Friday, Marketbeat Ratings reports. They currently have $115.00 price objective on the stock, down from their previous price objective of $129.00.

Other analysts have also recently issued reports about the stock. JPMorgan Chase & Co. decreased their price objective on shares of Mohawk Industries from $160.00 to $105.00 and set an underweight rating on the stock in a research note on Monday, October 29th. Loop Capital decreased their price objective on shares of Mohawk Industries to $165.00 and set a hold rating on the stock in a research note on Tuesday, October 16th. They noted that the move was a valuation call. Robert W. Baird set a $192.00 price objective on shares of Mohawk Industries and gave the stock a buy rating in a research note on Tuesday, October 16th. Stifel Nicolaus cut shares of Mohawk Industries from a buy rating to a hold rating in a research note on Monday, October 29th. Finally, Barclays decreased their price objective on shares of Mohawk Industries from $215.00 to $140.00 and set a buy rating on the stock in a research note on Monday, October 29th. Five research analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have assigned a buy rating to the company’s stock. Mohawk Industries has an average rating of Hold and a consensus price target of $170.75.

NYSE MHK opened at $125.67 on Friday. The stock has a market capitalization of $9.45 billion, a P/E ratio of 9.23, a price-to-earnings-growth ratio of 1.63 and a beta of 1.48. Mohawk Industries has a twelve month low of $109.35 and a twelve month high of $281.48. The company has a current ratio of 1.54, a quick ratio of 0.79 and a debt-to-equity ratio of 0.20.

Mohawk Industries (NYSE:MHK) last posted its earnings results on Thursday, October 25th. The company reported $3.29 earnings per share for the quarter, missing the Zacks’ consensus estimate of $3.58 by ($0.29). The business had revenue of $2.55 billion during the quarter, compared to the consensus estimate of $2.61 billion. Mohawk Industries had a net margin of 8.81% and a return on equity of 13.49%. As a group, research analysts anticipate that Mohawk Industries will post 12.31 earnings per share for the current fiscal year.

Mohawk Industries declared that its Board of Directors has initiated a share buyback program on Thursday, October 25th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 4.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its shares are undervalued.

In related news, insider Suzanne L. Helen sold 10,642 shares of the stock in a transaction that occurred on Monday, November 26th. The shares were sold at an average price of $128.83, for a total value of $1,371,008.86. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Filip Balcaen acquired 9,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 26th. The stock was acquired at an average price of $109.76 per share, for a total transaction of $987,840.00. Following the completion of the acquisition, the director now directly owns 776 shares of the company’s stock, valued at $85,173.76. The disclosure for this purchase can be found here. Insiders have bought 468,744 shares of company stock worth $56,068,149 over the last quarter. 16.80% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. Tributary Capital Management LLC raised its holdings in Mohawk Industries by 35.3% in the third quarter. Tributary Capital Management LLC now owns 4,600 shares of the company’s stock worth $807,000 after purchasing an additional 1,200 shares during the period. CHICAGO TRUST Co NA raised its holdings in Mohawk Industries by 19.7% in the third quarter. CHICAGO TRUST Co NA now owns 5,101 shares of the company’s stock worth $895,000 after purchasing an additional 839 shares during the period. USS Investment Management Ltd raised its holdings in Mohawk Industries by 51.7% in the third quarter. USS Investment Management Ltd now owns 27,077 shares of the company’s stock worth $4,748,000 after purchasing an additional 9,225 shares during the period. Sterling Capital Management LLC raised its holdings in Mohawk Industries by 5.4% in the second quarter. Sterling Capital Management LLC now owns 7,591 shares of the company’s stock worth $1,627,000 after purchasing an additional 391 shares during the period. Finally, Renaissance Technologies LLC acquired a new stake in Mohawk Industries in the second quarter worth $8,742,000. Institutional investors own 78.25% of the company’s stock.

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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Analyst Recommendations for Mohawk Industries (NYSE:MHK)

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