Insider Selling: Mohawk Industries (NYSE:MHK) Director Sells 10,000 Shares of Stock

Key Points

• Director Jeffrey Lorberbaum sold 10,000 Mohawk Industries shares at an average price of $148.34, for about $1.48 million. He retained 69,625 shares, and the sale reduced his stake by 12.56%.
• Mohawk shares rose 5.5% to $153.38 in Wednesday midday trading. The company’s latest quarterly EPS of $2.72 beat estimates of $2.58, while revenue of $2.79 billion fell short of expectations.
• Analyst sentiment is mixed: the consensus rating is Hold, with an average price target of $138.92. Evercore ISI upgraded the stock to Outperform, citing the prospect of a roughly $1.1 billion share buyback.

Mohawk Industries, Inc. (NYSE:MHK - Get Free Report) Director Jeffrey Lorberbaum sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $148.34, for a total transaction of $1,483,400.00. Following the completion of the transaction, the director owned 69,625 shares in the company, valued at $10,328,172.50. This represents a 12.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Mohawk Industries Trading Up 5.5%

NYSE:MHK traded up $8.02 during midday trading on Wednesday, reaching $153.38. 1,826,393 shares of the stock traded hands, compared to its average volume of 980,892. The company has a fifty day moving average of $126.18 and a 200 day moving average of $116.84. Mohawk Industries, Inc. has a 12 month low of $92.99 and a 12 month high of $154.46. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.09 and a current ratio of 1.91. The stock has a market capitalization of $8.92 billion, a P/E ratio of 18.00, a PEG ratio of 2.13 and a beta of 1.18.

Mohawk Industries (NYSE:MHK - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $2.72 earnings per share for the quarter, beating the consensus estimate of $2.58 by $0.14. The business had revenue of $2.79 billion during the quarter, compared to analysts' expectations of $2.82 billion. Mohawk Industries had a net margin of 4.63% and a return on equity of 7.47%. The firm's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.67 EPS. On average, research analysts predict that Mohawk Industries, Inc. will post 9.78 EPS for the current year.

Analyst Upgrades and Downgrades

MHK has been the subject of a number of research analyst reports. Barclays raised their price target on Mohawk Industries from $115.00 to $125.00 and gave the stock an "equal weight" rating in a research note on Monday. Royal Bank Of Canada lowered shares of Mohawk Industries from a "sector perform" rating to an "underperform" rating and decreased their price objective for the stock from $130.00 to $112.00 in a report on Wednesday, October 7th. Robert W. Baird raised their target price on shares of Mohawk Industries from $132.00 to $142.00 and gave the stock a "neutral" rating in a research report on Monday. Weiss Ratings raised shares of Mohawk Industries from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday. Finally, Wall Street Zen cut shares of Mohawk Industries from a "buy" rating to a "hold" rating in a research report on Saturday. Four research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $138.92.

Institutional Investors Weigh In On Mohawk Industries

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in Mohawk Industries in the 2nd quarter worth about $777,293,000. Pzena Investment Management LLC bought a new stake in shares of Mohawk Industries in the second quarter worth approximately $138,661,000. Canada Pension Plan Investment Board bought a new stake in shares of Mohawk Industries in the second quarter worth approximately $80,880,000. Donald Smith & CO. Inc. purchased a new position in shares of Mohawk Industries during the second quarter valued at approximately $42,157,000. Finally, Bank of America Corp DE purchased a new position in shares of Mohawk Industries during the second quarter valued at approximately $36,666,000. 78.98% of the stock is owned by hedge funds and other institutional investors.

Mohawk Industries News Roundup

Here are the key news stories impacting Mohawk Industries this week:

• Positive Sentiment: Evercore ISI upgraded MHK to Outperform from In Line, citing the prospect of a roughly $1.1 billion share buyback. Repurchases could support demand for shares and return capital to investors. Evercore upgrade and buyback outlook
• Neutral Sentiment: Barclays raised its price target to $125 from $115 while maintaining Equal Weight. Baird lifted its target to $142 from $132 but kept a Neutral rating. The higher targets are modestly favorable, though both sit below the share price reported in the supplied market data. Barclays price-target update Baird outlook
• Negative Sentiment: Two directors sold shares on November 2. Bernard Thiers sold 15,000 shares for about $2.16 million, reducing his stake by roughly 16%; Jeffrey Lorberbaum sold 10,000 shares for about $1.48 million, cutting his ownership by about 13%. Insider sales may weigh on sentiment, although the filings do not state the reasons for the transactions. Thiers share sale Lorberbaum SEC filing

About Mohawk Industries

Mohawk Industries, Inc is a global manufacturer and distributor of flooring products. The company serves residential and commercial customers through products sold to retailers, distributors, builders, contractors and other industry professionals.

Its product portfolio includes carpet, rugs, ceramic and porcelain tile, hardwood flooring, laminate, luxury vinyl tile and other resilient flooring products. Mohawk markets products under a range of well-known brands, including Mohawk, Karastan, Pergo, Quick-Step, Marazzi, Daltile, American Olean and Durkan.

The company traces its origins to a carpet mill established in 1878 and is headquartered in Calhoun, Georgia.

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