Mohawk Industries (NYSE:MHK) Trading 7.7% Higher - Should You Buy?

Key Points

• Mohawk Industries shares jumped 7.7% in mid-day trading, reaching as high as $118.89 after closing at $108.66 the prior day. Trading volume was far below average, with just 64,013 shares changing hands versus a typical 897,385.
• Recent analyst sentiment has been mixed, with several firms lowering price targets and Weiss Ratings cutting the stock to sell. The consensus rating remains Hold, with a consensus target price of $123.33.
• The company beat earnings expectations in its latest quarter, reporting $1.90 EPS versus the $1.80 estimate, while revenue rose 8% year over year. However, insiders have been selling shares, and institutional investors still own nearly 79% of the stock.

Shares of Mohawk Industries, Inc. (NYSE:MHK - Get Free Report) rose 7.7% during mid-day trading on Wednesday . The stock traded as high as $118.89 and last traded at $117.0310. 64,013 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 897,385 shares. The stock had previously closed at $108.66.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Wells Fargo & Company decreased their price target on Mohawk Industries from $125.00 to $105.00 and set an "equal weight" rating for the company in a report on Wednesday, April 8th. Evercore set a $110.00 price objective on Mohawk Industries in a research note on Monday, May 4th. Truist Financial decreased their target price on Mohawk Industries from $155.00 to $135.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Deutsche Bank Aktiengesellschaft set a $109.00 target price on Mohawk Industries in a report on Tuesday, May 5th. Finally, Weiss Ratings cut Mohawk Industries from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $123.33.

Mohawk Industries Stock Up 8.4%

The company has a market cap of $7.18 billion, a P/E ratio of 17.66, a PEG ratio of 2.73 and a beta of 1.20. The stock's 50-day moving average price is $104.86 and its 200-day moving average price is $110.61. The company has a current ratio of 2.16, a quick ratio of 1.23 and a debt-to-equity ratio of 0.21.

Mohawk Industries (NYSE:MHK - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.90 earnings per share for the quarter, topping analysts' consensus estimates of $1.80 by $0.10. The business had revenue of $2.73 billion for the quarter, compared to the consensus estimate of $2.74 billion. Mohawk Industries had a return on equity of 6.96% and a net margin of 3.77%.The firm's revenue for the quarter was up 8.0% on a year-over-year basis. During the same period in the prior year, the business earned $1.52 EPS. Mohawk Industries has set its Q2 2026 guidance at 2.500-2.600 EPS. As a group, research analysts forecast that Mohawk Industries, Inc. will post 8.67 EPS for the current year.

Insider Buying and Selling at Mohawk Industries

In other Mohawk Industries news, CEO Jeffrey S. Lorberbaum sold 4,500 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $112.08, for a total value of $504,360.00. Following the transaction, the chief executive officer directly owned 20,000 shares of the company's stock, valued at approximately $2,241,600. This trade represents a 18.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Suzanne L. Helen sold 16,600 shares of the firm's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $112.97, for a total transaction of $1,875,302.00. Following the completion of the transaction, the insider directly owned 14,132 shares in the company, valued at $1,596,492.04. This trade represents a 54.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 40,186 shares of company stock valued at $4,460,321. 17.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Mohawk Industries

Institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank acquired a new position in Mohawk Industries during the 4th quarter valued at about $77,528,000. AQR Capital Management LLC lifted its holdings in shares of Mohawk Industries by 73.9% in the third quarter. AQR Capital Management LLC now owns 1,578,335 shares of the company's stock valued at $200,922,000 after purchasing an additional 670,601 shares in the last quarter. Steadfast Capital Management LP boosted its position in shares of Mohawk Industries by 96.3% during the third quarter. Steadfast Capital Management LP now owns 937,301 shares of the company's stock valued at $120,837,000 after buying an additional 459,700 shares during the last quarter. Candlestick Capital Management LP purchased a new position in shares of Mohawk Industries during the third quarter valued at approximately $53,320,000. Finally, Freestone Grove Partners LP bought a new stake in Mohawk Industries during the third quarter worth $36,076,000. Institutional investors and hedge funds own 78.98% of the company's stock.

About Mohawk Industries

Mohawk Industries, Inc is a global flooring manufacturer that designs, produces and distributes a broad range of floor covering products for both residential and commercial applications. Headquartered in Calhoun, Georgia, the company traces its roots to 1878 and has expanded through a series of strategic acquisitions and organic growth initiatives. Over the decades, Mohawk has built a vertically integrated platform encompassing yarn manufacturing, fiber production, wood and laminate finishing, and ceramic tile fabrication, enabling tight control over product quality and supply chain efficiency.

The company's product portfolio includes residential and commercial carpet, ceramic and porcelain tile, laminate, wood and natural stone flooring, luxury vinyl, and innovative surface solutions.

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