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

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Mohawk Industries (NYSE:MHK) was downgraded by equities researchers at Royal Bank of Canada from a “sector perform” rating to an “underperform” rating in a report issued on Friday, The Fly reports.

MHK has been the topic of several other research reports. Credit Suisse Group reaffirmed a “neutral” rating on shares of Mohawk Industries in a research note on Monday, October 29th. Jefferies Financial Group downgraded shares of Mohawk Industries from a “buy” rating to a “hold” rating in a research note on Friday, October 26th. Bank of America set a $210.00 price target on shares of Mohawk Industries and gave the stock a “buy” rating in a research note on Thursday, October 11th. Barclays dropped their price target 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. Finally, Goldman Sachs Group initiated coverage on shares of Mohawk Industries in a research note on Tuesday, October 2nd. They set a “neutral” rating and a $210.00 price target on the stock. Five investment analysts have rated the stock with a sell rating, nine have given a hold rating and seven have assigned a buy rating to the company’s stock. Mohawk Industries currently has an average rating of “Hold” and a consensus target price of $171.63.

Shares of MHK stock opened at $126.59 on Friday. Mohawk Industries has a 52 week low of $109.35 and a 52 week 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. The firm has a market capitalization of $9.45 billion, a PE ratio of 9.30, a price-to-earnings-growth ratio of 1.63 and a beta of 1.48.

Mohawk Industries (NYSE:MHK) last released its quarterly earnings results on Thursday, October 25th. The company reported $3.29 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $3.58 by ($0.29). Mohawk Industries had a return on equity of 13.49% and a net margin of 8.81%. The firm had revenue of $2.55 billion for the quarter, compared to analysts’ expectations of $2.61 billion. On average, equities analysts expect that Mohawk Industries will post 12.31 earnings per share for the current year.

Mohawk Industries declared that its board has approved a stock buyback plan on Thursday, October 25th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to repurchase up to 4.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

In other Mohawk Industries news, Director Filip Balcaen purchased 9,000 shares of the firm’s stock in a transaction dated Wednesday, December 26th. The stock was acquired at an average cost of $109.76 per share, with a total value of $987,840.00. Following the acquisition, the director now owns 776 shares of the company’s stock, valued at approximately $85,173.76. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Brian Carson purchased 2,698 shares of the firm’s stock in a transaction dated Monday, October 29th. The stock was acquired at an average cost of $116.34 per share, with a total value of $313,885.32. Following the completion of the acquisition, the insider now directly owns 21,135 shares in the company, valued at approximately $2,458,845.90. The disclosure for this purchase can be found here. Insiders bought a total of 468,744 shares of company stock valued at $56,068,149 over the last ninety days. Company insiders own 16.80% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the company. CENTRAL TRUST Co raised its position in shares of Mohawk Industries by 66.1% during the 4th quarter. CENTRAL TRUST Co now owns 407 shares of the company’s stock worth $48,000 after buying an additional 162 shares in the last quarter. WESPAC Advisors SoCal LLC bought a new stake in shares of Mohawk Industries during the 3rd quarter worth about $105,000. Qube Research & Technologies Ltd bought a new stake in shares of Mohawk Industries during the 2nd quarter worth about $110,000. SRS Capital Advisors Inc. bought a new stake in shares of Mohawk Industries during the 3rd quarter worth about $118,000. Finally, Amica Retiree Medical Trust raised its position in shares of Mohawk Industries by 134.3% during the 3rd quarter. Amica Retiree Medical Trust now owns 848 shares of the company’s stock worth $149,000 after buying an additional 486 shares in the last quarter. 78.25% of the stock is owned by institutional investors and hedge funds.

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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