Royal Bank of Canada Lowers Mohawk Industries (MHK) to Underperform

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Royal Bank of Canada downgraded shares of Mohawk Industries (NYSE:MHK) from a sector perform rating to an underperform rating in a research report report published on Friday morning, MarketBeat reports. Royal Bank of Canada currently has $115.00 price target on the stock, down from their prior price target of $129.00.

MHK has been the subject of a number of other reports. Credit Suisse Group reiterated a neutral rating on shares of Mohawk Industries in a research note on Monday, October 29th. Jefferies Financial Group cut Mohawk Industries from a buy rating to a hold rating in a report on Friday, October 26th. Bank of America set a $210.00 price target on Mohawk Industries and gave the company a buy rating in a report on Thursday, October 11th. Barclays cut their price target on Mohawk Industries from $215.00 to $140.00 and set a buy rating on the stock in a report on Monday, October 29th. Finally, Goldman Sachs Group began coverage on Mohawk Industries in a report 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 issued a hold rating and seven have given a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $170.75.

Shares of Mohawk Industries stock opened at $125.67 on Friday. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.54 and a quick ratio of 0.79. The stock has a market cap of $9.45 billion, a PE ratio of 9.23, a price-to-earnings-growth ratio of 1.63 and a beta of 1.48. Mohawk Industries has a 1-year low of $109.35 and a 1-year high of $281.48.

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

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

In other news, Director Filip Balcaen acquired 9,000 shares of the stock in a transaction on Wednesday, December 26th. The shares were purchased at an average cost of $109.76 per share, for a total transaction of $987,840.00. Following the transaction, the director now owns 776 shares in the company, valued at approximately $85,173.76. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Brian Carson acquired 2,698 shares of the stock in a transaction on Monday, October 29th. The shares were purchased at an average price of $116.34 per share, for a total transaction of $313,885.32. Following the completion of the transaction, the insider now owns 21,135 shares in the company, valued at approximately $2,458,845.90. The disclosure for this purchase can be found here. In the last 90 days, insiders acquired 468,744 shares of company stock worth $56,068,149. 16.80% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Federated Investors Inc. PA grew its holdings in shares of Mohawk Industries by 8.8% during the 2nd quarter. Federated Investors Inc. PA now owns 3,439 shares of the company’s stock valued at $737,000 after acquiring an additional 277 shares in the last quarter. Renaissance Technologies LLC purchased a new position in shares of Mohawk Industries during the 2nd quarter valued at $8,742,000. Glen Harbor Capital Management LLC grew its holdings in shares of Mohawk Industries by 21.4% during the 2nd quarter. Glen Harbor Capital Management LLC now owns 4,250 shares of the company’s stock valued at $911,000 after acquiring an additional 748 shares in the last quarter. BB&T Securities LLC grew its holdings in shares of Mohawk Industries by 31.0% during the 2nd quarter. BB&T Securities LLC now owns 12,456 shares of the company’s stock valued at $2,668,000 after acquiring an additional 2,950 shares in the last quarter. Finally, Raymond James & Associates grew its holdings in shares of Mohawk Industries by 14.1% during the 2nd quarter. Raymond James & Associates now owns 78,500 shares of the company’s stock valued at $16,820,000 after acquiring an additional 9,675 shares in the last quarter. Hedge funds and other institutional investors own 78.25% of the company’s stock.

About Mohawk Industries

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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Analyst Recommendations for Mohawk Industries (NYSE:MHK)

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