SunTrust Banks Lowers Mohawk Industries (MHK) Price Target to $135.00

Mohawk Industries (NYSE:MHK) had its price target reduced by SunTrust Banks from $270.00 to $135.00 in a research note issued to investors on Monday, The Fly reports. They currently have a buy rating on the stock.

A number of other brokerages also recently commented on MHK. Zacks Investment Research downgraded Mohawk Industries from a hold rating to a sell rating in a research note on Tuesday, July 24th. Jefferies Financial Group decreased their target price on Mohawk Industries from $294.00 to $268.00 and set a buy rating for the company in a research note on Tuesday, July 31st. Cleveland Research restated a hold rating on shares of Mohawk Industries in a research note on Wednesday, September 12th. Credit Suisse Group decreased their target price on Mohawk Industries from $275.00 to $220.00 and set an outperform rating for the company in a research note on Friday, July 27th. Finally, Gabelli restated a buy rating on shares of Mohawk Industries in a research note on Friday, July 27th. Four analysts have rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating to the company’s stock. Mohawk Industries presently has an average rating of Hold and an average target price of $175.06.

MHK stock traded down $1.59 during midday trading on Monday, reaching $130.12. The company had a trading volume of 49,344 shares, compared to its average volume of 1,956,555. The company has a quick ratio of 0.79, a current ratio of 1.54 and a debt-to-equity ratio of 0.20. Mohawk Industries has a fifty-two week low of $113.45 and a fifty-two week high of $286.85. The company has a market cap of $9.25 billion, a P/E ratio of 9.54, a PEG ratio of 1.46 and a beta of 1.29.

Mohawk Industries (NYSE:MHK) last issued 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). Mohawk Industries had a net margin of 8.81% and a return on equity of 13.49%. The company had revenue of $2.55 billion during the quarter, compared to analyst estimates of $2.61 billion. Analysts expect that Mohawk Industries will post 12.46 EPS for the current fiscal year.

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

In related news, Chairman Jeffrey S. Lorberbaum sold 13,400 shares of the business’s stock in a transaction that occurred on Friday, September 14th. The stock was sold at an average price of $186.74, for a total transaction of $2,502,316.00. Following the sale, the chairman now owns 45,187 shares of the company’s stock, valued at $8,438,220.38. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Bernard Thiers sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 11th. The stock was sold at an average price of $190.00, for a total value of $950,000.00. Following the sale, the insider now directly owns 40,156 shares in the company, valued at approximately $7,629,640. The disclosure for this sale can be found here. Over the last quarter, insiders have bought 287,698 shares of company stock valued at $36,348,885. Insiders own 16.80% of the company’s stock.

Large investors have recently made changes to their positions in the stock. Principal Financial Group Inc. increased its holdings in shares of Mohawk Industries by 0.3% in the first quarter. Principal Financial Group Inc. now owns 1,199,943 shares of the company’s stock valued at $278,651,000 after buying an additional 3,493 shares in the last quarter. Suntrust Banks Inc. increased its holdings in shares of Mohawk Industries by 101.2% in the first quarter. Suntrust Banks Inc. now owns 4,816 shares of the company’s stock valued at $1,117,000 after buying an additional 2,422 shares in the last quarter. Cerebellum GP LLC increased its holdings in shares of Mohawk Industries by 292.6% in the second quarter. Cerebellum GP LLC now owns 844 shares of the company’s stock valued at $181,000 after buying an additional 629 shares in the last quarter. New England Research & Management Inc. increased its holdings in shares of Mohawk Industries by 20.2% in the second quarter. New England Research & Management Inc. now owns 3,125 shares of the company’s stock valued at $670,000 after buying an additional 525 shares in the last quarter. Finally, DnB Asset Management AS bought a new position in shares of Mohawk Industries in the second quarter valued at $4,008,000. 81.71% of the stock is currently owned by hedge funds and other institutional investors.

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).

Further Reading: Cash Flow

The Fly

Analyst Recommendations for Mohawk Industries (NYSE:MHK)

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