Mohawk Industries, Inc. (MHK) Downgraded to “Sell” at Zacks Investment Research

Mohawk Industries, Inc. (NYSE:MHK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday, October 24th.

According to Zacks, “Mohawk’s shares have underperformed its industry in the last six months. Earnings estimate for the current quarter and year have also declined by 0.8% and 0.3% respectively, over the last 60 days. Currency translation is a major concern as Mohawk generates almost one-third of its revenues from customers outside the United States. Currency headwinds hurt sales in 2016 by $69 million and in 2015 by $490 million. Despite the fact that the unfavorable currency impact has lessened, and is expected to improve through the rest of 2017, the net impact of currency headwinds still remains significant. Though, the company is currently exploring numerous investment options for expansion, including Greenfield opportunities and acquisitions to broaden its geographic presence and product portfolio, we await better visibility.”

A number of other analysts also recently issued reports on the company. Northcoast Research started coverage on Mohawk Industries in a report on Thursday, October 5th. They set a “buy” rating and a $295.00 price target for the company. Instinet reiterated a “buy” rating and set a $288.00 target price (up previously from $280.00) on shares of Mohawk Industries in a research report on Saturday, September 30th. Nomura reiterated a “buy” rating and set a $288.00 target price (up previously from $280.00) on shares of Mohawk Industries in a research report on Thursday, September 28th. Cleveland Research cut Mohawk Industries from a “buy” rating to a “neutral” rating in a research report on Friday, September 22nd. Finally, ValuEngine upgraded Mohawk Industries from a “hold” rating to a “buy” rating in a research report on Friday, September 8th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $279.15.

Shares of Mohawk Industries (NYSE MHK) opened at $263.85 on Tuesday. The stock has a market capitalization of $19,609.33, a P/E ratio of 19.62, a price-to-earnings-growth ratio of 2.39 and a beta of 1.35. The company has a quick ratio of 0.77, a current ratio of 1.48 and a debt-to-equity ratio of 0.23. Mohawk Industries has a 12 month low of $189.44 and a 12 month high of $268.46.

Mohawk Industries (NYSE:MHK) last posted its quarterly earnings data on Thursday, October 26th. The company reported $3.75 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $3.74 by $0.01. The company had revenue of $2.45 billion during the quarter, compared to analysts’ expectations of $2.46 billion. Mohawk Industries had a return on equity of 16.03% and a net margin of 10.37%. Mohawk Industries’s revenue was up 6.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.50 EPS. sell-side analysts expect that Mohawk Industries will post 13.52 earnings per share for the current year.

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In other news, Chairman Jeffrey S. Lorberbaum sold 19,700 shares of the stock in a transaction dated Tuesday, September 5th. The shares were sold at an average price of $254.95, for a total value of $5,022,515.00. Following the transaction, the chairman now directly owns 21,396 shares of the company’s stock, valued at $5,454,910.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 17.00% of the company’s stock.

Several large investors have recently added to or reduced their stakes in the company. Wells Fargo & Company MN increased its stake in Mohawk Industries by 46.3% during the 3rd quarter. Wells Fargo & Company MN now owns 872,767 shares of the company’s stock valued at $216,018,000 after purchasing an additional 276,409 shares in the last quarter. Third Point LLC raised its stake in Mohawk Industries by 2.9% in the 3rd quarter. Third Point LLC now owns 900,000 shares of the company’s stock valued at $222,759,000 after acquiring an additional 25,000 shares during the period. Schroder Investment Management Group raised its stake in Mohawk Industries by 6.0% in the 3rd quarter. Schroder Investment Management Group now owns 68,632 shares of the company’s stock valued at $17,026,000 after acquiring an additional 3,895 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in Mohawk Industries by 9.5% in the 3rd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 5,139 shares of the company’s stock valued at $1,272,000 after acquiring an additional 446 shares during the period. Finally, Trexquant Investment LP increased its position in shares of Mohawk Industries by 59.5% during the third quarter. Trexquant Investment LP now owns 1,755 shares of the company’s stock valued at $434,000 after buying an additional 655 shares during the period. Institutional investors own 76.85% of the company’s stock.

Mohawk Industries Company Profile

Mohawk Industries, Inc is a flooring manufacturer that creates products for residential and commercial spaces around the world. The Company’ segments include Global Ceramic, Flooring North America (Flooring NA) and Flooring Rest of the World (Flooring ROW). Its manufacturing and distribution processes provide carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile and vinyl flooring.

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