Mohawk Industries (MHK) Shares Up 6.6% After Insider Buying Activity

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Mohawk Industries, Inc. (NYSE:MHK) shot up 6.6% during trading on Tuesday after an insider bought additional shares in the company. The stock traded as high as $124.14 and last traded at $123.94. 3,092,854 shares changed hands during trading, an increase of 210% from the average session volume of 998,574 shares. The stock had previously closed at $116.28.

Specifically, insider Bernard Thiers sold 5,000 shares of Mohawk Industries stock in a transaction that occurred on Tuesday, September 11th. The stock was sold at an average price of $190.00, for a total transaction of $950,000.00. Following the sale, the insider now owns 40,156 shares of the company’s stock, valued at approximately $7,629,640. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Filip Balcaen bought 25,000 shares of the firm’s stock in a transaction that occurred on Friday, August 3rd. The shares were acquired at an average cost of $183.45 per share, for a total transaction of $4,586,250.00. Following the purchase, the director now directly owns 776 shares in the company, valued at approximately $142,357.20. The disclosure for this purchase can be found here. Insiders have purchased a total of 62,698 shares of company stock worth $11,330,135 in the last three months. 16.80% of the stock is owned by corporate insiders.

Several equities analysts have weighed in on MHK shares. Raymond James cut Mohawk Industries from a “strong-buy” rating to an “outperform” rating in a report on Friday, July 27th. Zacks Investment Research cut Mohawk Industries from a “hold” rating to a “sell” rating in a report on Tuesday, July 24th. Robert W. Baird restated a “buy” rating and set a $212.00 price target on shares of Mohawk Industries in a report on Friday, July 27th. Stifel Nicolaus cut their price target on Mohawk Industries from $290.00 to $235.00 and set a “buy” rating for the company in a report on Friday, July 27th. Finally, JPMorgan Chase & Co. cut their price target on Mohawk Industries from $160.00 to $105.00 and set an “underweight” rating for the company in a report on Monday. Four investment analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $175.06.

The firm has a market cap of $8.58 billion, a price-to-earnings ratio of 9.16, a P/E/G ratio of 1.23 and a beta of 1.29. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.54 and a quick ratio of 0.79.

Mohawk Industries (NYSE:MHK) last announced its earnings results on Thursday, October 25th. The company reported $3.29 EPS for the quarter, missing the Zacks’ consensus estimate of $3.58 by ($0.29). The company had revenue of $2.55 billion during the quarter, compared to analysts’ expectations of $2.61 billion. Mohawk Industries had a return on equity of 13.49% and a net margin of 8.81%. Analysts forecast that Mohawk Industries, Inc. will post 13.62 earnings per share for the current year.

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

Institutional investors have recently made changes to their positions in the company. WESPAC Advisors SoCal LLC purchased a new position in shares of Mohawk Industries in the 3rd quarter worth approximately $105,000. Qube Research & Technologies Ltd purchased a new position in shares of Mohawk Industries in the 2nd quarter worth approximately $110,000. Captrust Financial Advisors boosted its holdings in shares of Mohawk Industries by 2,250.0% in the 2nd quarter. Captrust Financial Advisors now owns 705 shares of the company’s stock worth $151,000 after purchasing an additional 675 shares during the period. Piedmont Investment Advisors LLC purchased a new position in shares of Mohawk Industries in the 2nd quarter worth approximately $159,000. Finally, NuWave Investment Management LLC boosted its holdings in shares of Mohawk Industries by 686.4% in the 2nd quarter. NuWave Investment Management LLC now owns 810 shares of the company’s stock worth $173,000 after purchasing an additional 707 shares during the period. Hedge funds and other institutional investors own 81.71% of the company’s stock.

Mohawk Industries Company Profile (NYSE:MHK)

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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