Zacks Investment Research Upgrades Mohawk Industries (MHK) to Hold
Mohawk Industries (NYSE:MHK) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Input cost inflation, higher transportation expenses and increased start-up costs have been a cause of concern for Mohawk. Again, slowing macro outlook in North America, uncertainties around U.S. housing, coupled with macro trends in Europe and Australia added to the woes. The company has a cautious stance for 2019, given slowing market conditions and oil volatility that is making its expenses unpredictable. Estimates for 2019 have displayed a downward trend. Meanwhile, shares of Mohawk have outperformed its industry over the past three months, given its leadership position in flooring, continued modest growth and accretive buyouts. Mohawk is trying hard to offset the negatives by increasing prices, expanding in growing channels, introducing new products and foraying into geographies.”
Other equities research analysts have also recently issued reports about the stock. Loop Capital raised their target price on shares of Mohawk Industries to $126.00 and gave the stock an “underperform” rating in a research report on Friday, February 8th. Royal Bank of Canada cut shares of Mohawk Industries from a “sector perform” rating to an “underperform” rating and dropped their target price for the stock from $129.00 to $115.00 in a research report on Friday, January 11th. Zelman & Associates cut shares of Mohawk Industries from a “buy” rating to a “hold” rating in a research report on Wednesday, December 19th. Wells Fargo & Co raised their target price on shares of Mohawk Industries from $130.00 to $135.00 and gave the stock a “market perform” rating in a research report on Monday, February 11th. Finally, Credit Suisse Group set a $125.00 target price on shares of Mohawk Industries and gave the stock a “hold” rating in a research report on Friday, January 11th. Six analysts have rated the stock with a sell rating, nine have given a hold rating and six have given a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $168.94.
Mohawk Industries (NYSE:MHK) last posted its earnings results on Thursday, February 7th. The company reported $2.53 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.49 by $0.04. Mohawk Industries had a net margin of 8.63% and a return on equity of 12.40%. The firm had revenue of $2.45 billion during the quarter, compared to analysts’ expectations of $2.43 billion. During the same period last year, the company posted $3.42 EPS. The company’s quarterly revenue was up 3.4% compared to the same quarter last year. As a group, research analysts forecast that Mohawk Industries will post 11.24 earnings per share for the current year.
In related news, VP Rodney David Patton sold 2,260 shares of Mohawk Industries stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $133.50, for a total transaction of $301,710.00. Following the completion of the transaction, the vice president now directly owns 9,134 shares of the company’s stock, valued at approximately $1,219,389. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Filip Balcaen purchased 9,000 shares of the stock in a transaction that occurred on Wednesday, December 26th. The shares were acquired at an average cost of $109.76 per share, with a total value of $987,840.00. Following the completion of the transaction, the director now owns 776 shares in the company, valued at $85,173.76. The disclosure for this purchase can be found here. Company insiders own 16.80% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Lindbrook Capital LLC bought a new stake in Mohawk Industries during the 4th quarter valued at about $34,000. CSat Investment Advisory L.P. increased its stake in Mohawk Industries by 222.0% during the 4th quarter. CSat Investment Advisory L.P. now owns 293 shares of the company’s stock valued at $34,000 after purchasing an additional 202 shares in the last quarter. Parallel Advisors LLC increased its stake in Mohawk Industries by 123.4% during the 4th quarter. Parallel Advisors LLC now owns 353 shares of the company’s stock valued at $41,000 after purchasing an additional 195 shares in the last quarter. CENTRAL TRUST Co increased its stake in Mohawk Industries by 66.1% during the 4th quarter. CENTRAL TRUST Co now owns 407 shares of the company’s stock valued at $48,000 after purchasing an additional 162 shares in the last quarter. Finally, Patten Group Inc. increased its stake in Mohawk Industries by 350.9% during the 4th quarter. Patten Group Inc. now owns 514 shares of the company’s stock valued at $60,000 after purchasing an additional 400 shares in the last quarter. 77.80% of the stock is owned by 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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