Mohawk Industries (NYSE:MHK) Shares Gap Up After Earnings Beat

Mohawk Industries, Inc. (NYSE:MHK)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $134.50, but opened at $150.15. Mohawk Industries shares last traded at $157.59, with a volume of 566,934 shares changing hands.

The company reported $3.00 earnings per share for the quarter, beating analysts’ consensus estimates of $2.76 by $0.24. Mohawk Industries had a positive return on equity of 7.72% and a negative net margin of 3.77%. The company had revenue of $2.80 billion for the quarter, compared to analyst estimates of $2.84 billion. During the same quarter in the previous year, the company earned $2.76 EPS. The firm’s revenue for the quarter was down 5.1% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on MHK shares. Barclays dropped their price objective on Mohawk Industries from $120.00 to $118.00 and set an “equal weight” rating on the stock in a report on Friday, July 12th. JPMorgan Chase & Co. increased their price target on shares of Mohawk Industries from $122.00 to $124.00 and gave the company a “neutral” rating in a report on Friday, May 3rd. Truist Financial reduced their price objective on shares of Mohawk Industries from $140.00 to $135.00 and set a “buy” rating for the company in a research note on Wednesday, July 10th. Royal Bank of Canada upped their target price on shares of Mohawk Industries from $106.00 to $108.00 and gave the stock a “sector perform” rating in a research report on Monday, April 29th. Finally, Bank of America raised Mohawk Industries from an “underperform” rating to a “buy” rating and boosted their price target for the stock from $120.00 to $177.00 in a research note on Friday. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $127.45.

Insider Transactions at Mohawk Industries

In related news, insider Suzanne L. Helen sold 1,800 shares of the company’s stock in a transaction that occurred on Friday, June 14th. The stock was sold at an average price of $111.74, for a total value of $201,132.00. Following the sale, the insider now owns 122,369 shares of the company’s stock, valued at approximately $13,673,512.06. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 17.10% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in MHK. Allspring Global Investments Holdings LLC boosted its stake in shares of Mohawk Industries by 2.0% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 119,465 shares of the company’s stock worth $13,570,000 after purchasing an additional 2,322 shares during the last quarter. State of Michigan Retirement System raised its position in shares of Mohawk Industries by 0.7% in the second quarter. State of Michigan Retirement System now owns 14,545 shares of the company’s stock valued at $1,652,000 after buying an additional 100 shares during the last quarter. Bank of New York Mellon Corp lifted its stake in shares of Mohawk Industries by 2.4% during the second quarter. Bank of New York Mellon Corp now owns 311,268 shares of the company’s stock valued at $35,357,000 after buying an additional 7,194 shares during the period. Van Lanschot Kempen Investment Management N.V. boosted its position in Mohawk Industries by 11.2% during the second quarter. Van Lanschot Kempen Investment Management N.V. now owns 667,516 shares of the company’s stock worth $75,823,000 after acquiring an additional 67,452 shares during the last quarter. Finally, Fifth Third Bancorp grew its stake in Mohawk Industries by 7.0% in the 2nd quarter. Fifth Third Bancorp now owns 2,343 shares of the company’s stock worth $266,000 after acquiring an additional 154 shares during the period. Institutional investors and hedge funds own 78.98% of the company’s stock.

Mohawk Industries Price Performance

The company has a market capitalization of $10.00 billion, a price-to-earnings ratio of -24.10, a P/E/G ratio of 1.28 and a beta of 1.38. The company has a fifty day simple moving average of $116.95 and a two-hundred day simple moving average of $115.45. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.02 and a current ratio of 1.83.

About Mohawk Industries

Mohawk Industries, Inc designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World.