Zacks Investment Research Upgrades Mohawk Industries (MHK) to Buy

Mohawk Industries (NYSE:MHK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Monday. The brokerage currently has a $268.00 target price on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 10.07% from the company’s current price.

According to Zacks, “Mohawk enjoys a leading position in the home furnishings industry and has completed four strategic acquisitions this year that broadened its product portfolio. The company is on track to explore numerous investment options for expansion and buyouts to broaden its footprint and product portfolio. Overall, 2018 will be a transition year for Mohawk as the company poised to benefit from the large amounts of capacity brought in 2017. However, rising commodity prices continue to be a cause of concern. Though Mohawk’s shares have underperformed the industry in the past year, earnings estimates have increased over the last 60 days, reflecting analysts’ optimism in the stock.”

A number of other research analysts also recently issued reports on MHK. ValuEngine upgraded shares of Mohawk Industries from a “hold” rating to a “buy” rating in a research report on Wednesday, February 7th. Loop Capital assumed coverage on shares of Mohawk Industries in a research report on Thursday, March 1st. They issued a “hold” rating and a $261.00 price target on the stock. Robert W. Baird reduced their price target on shares of Mohawk Industries from $312.00 to $300.00 and set an “outperform” rating on the stock in a research report on Monday, February 12th. Longbow Research upgraded shares of Mohawk Industries from a “neutral” rating to a “buy” rating in a research report on Monday, February 12th. Finally, Goldman Sachs downgraded shares of Mohawk Industries from a “conviction-buy” rating to a “buy” rating and reduced their price target for the stock from $306.00 to $292.00 in a research report on Thursday, March 1st. Five equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. Mohawk Industries currently has an average rating of “Buy” and an average price target of $290.73.

Shares of MHK stock opened at $243.48 on Monday. The company has a quick ratio of 0.80, a current ratio of 1.53 and a debt-to-equity ratio of 0.22. Mohawk Industries has a 1-year low of $223.99 and a 1-year high of $286.85. The firm has a market cap of $17,802.57, a price-to-earnings ratio of 17.89, a P/E/G ratio of 1.68 and a beta of 1.36.

Mohawk Industries (NYSE:MHK) last posted its quarterly earnings results on Thursday, February 8th. The company reported $3.42 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $3.32 by $0.10. Mohawk Industries had a net margin of 10.24% and a return on equity of 15.44%. The company had revenue of $2.37 billion for the quarter, compared to the consensus estimate of $2.36 billion. During the same period last year, the firm posted $3.26 EPS. The company’s revenue for the quarter was up 8.5% on a year-over-year basis. equities analysts forecast that Mohawk Industries will post 15.65 earnings per share for the current fiscal year.

In related news, CFO Frank H. Boykin sold 1,495 shares of Mohawk Industries stock in a transaction dated Tuesday, March 6th. The shares were sold at an average price of $238.29, for a total value of $356,243.55. Following the sale, the chief financial officer now directly owns 23,430 shares in the company, valued at approximately $5,583,134.70. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director William Henry Runge III acquired 500 shares of the business’s stock in a transaction that occurred on Wednesday, February 14th. The stock was purchased at an average price of $250.87 per share, for a total transaction of $125,435.00. Following the completion of the transaction, the director now owns 2,335 shares in the company, valued at $585,781.45. The disclosure for this purchase can be found here. Over the last quarter, insiders sold 34,595 shares of company stock worth $8,603,365. 16.80% of the stock is currently owned by insiders.

Large investors have recently modified their holdings of the stock. Cubist Systematic Strategies LLC raised its position in shares of Mohawk Industries by 126.8% during the 3rd quarter. Cubist Systematic Strategies LLC now owns 5,295 shares of the company’s stock worth $1,311,000 after buying an additional 2,960 shares in the last quarter. Janney Montgomery Scott LLC raised its position in shares of Mohawk Industries by 21.7% during the 3rd quarter. Janney Montgomery Scott LLC now owns 3,986 shares of the company’s stock worth $987,000 after buying an additional 711 shares in the last quarter. California Public Employees Retirement System raised its position in shares of Mohawk Industries by 4.2% during the 3rd quarter. California Public Employees Retirement System now owns 130,303 shares of the company’s stock worth $32,251,000 after buying an additional 5,303 shares in the last quarter. IFM Investors Pty Ltd bought a new stake in shares of Mohawk Industries during the 3rd quarter worth about $267,000. Finally, GSA Capital Partners LLP bought a new stake in shares of Mohawk Industries during the 3rd quarter worth about $1,245,000. Hedge funds and other institutional investors own 78.52% of the company’s stock.

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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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