Mohawk Industries Inc. (NYSE: MHK) stock fell -1.67% on Wednesday to $94.14 against a previous-day closing price of $95.74. With 0.6 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.56 million shares. During the session, the Furnishings Fixtures & Appliances company that operates in wider Consumer Cyclical sector, reached to the highest price of $96.50 whereas the lowest price it dropped to was $93.94. The 52-week range on MHK shows that it touched its highest point at $142.65 and its lowest point at $87.01 during that stretch. It currently has a 1-year price target of $117.31. Beta for the stock currently stands at 1.28.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MHK was down-trending over the past week, with a drop of -2.62%, but this was down by -1.39% over a month. Three-month performance dropped to -12.08% while six-month performance fell -5.45%. The stock lost -30.86% in the past year, while it has lost -7.90% so far this year. A look at the trailing 12-month EPS for MHK yields -2.23 with Next year EPS estimates of 11.59. For the next quarter, that number is 2.64. This implies an EPS growth rate of -97.40% for this year and 21.95% for next year. EPS is expected to decline by -5.86% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -50.70%.
Float and Shares Shorts:
At present, 63.58 million MHK shares are outstanding with a float of 52.50 million shares on hand for trading. On May 14, 2023, short shares totaled 1.16 million, which was 1.82% higher than short shares on Apr 13, 2023. In addition to Mr. Jeffrey S. Lorberbaum as the firm’s Chairman & CEO, Mr. William Christopher Wellborn serves as its Pres, COO, Pres of Global Ceramic & Director.
Through their ownership of 80.21% of MHK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.20% of MHK, in contrast to 30.53% held by mutual funds. Shares owned by individuals account for 22.96%. As the largest shareholder in MHK with 9.40% of the stake, The Vanguard Group, Inc. holds 5,969,687 shares worth 5,969,687. A second-largest stockholder of MHK, Fidelity Management & Research Co, holds 3,740,010 shares, controlling over 5.89% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MHK, holding 2,926,049 shares or 4.61% stake. With a 2.64% stake in MHK, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 1,678,608 shares are owned by the mutual fund manager. The Fidelity Low Priced Stock Fund, which owns about 2.36% of MHK stock, is the second-largest Mutual Fund holder. It holds 1,499,465 shares valued at 158.79 million. Vanguard Small Cap Index Fund holds 2.22% of the stake in MHK, owning 1,413,099 shares worth 149.65 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2023, MHK reported revenue of $3.15B and operating income of $367.93M. The EBITDA in the recently reported quarter was $512.02M and diluted EPS was $4.40.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MHK since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MHK analysts setting a high price target of $140.00 and a low target of $95.00, the average target price over the next 12 months is $117.14. Based on these targets, MHK could surge 48.71% to reach the target high and rise by 0.91% to reach the target low. Reaching the average price target will result in a growth of 24.43% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded MHK stock several times over the past three months with 8 Buys and 17 Sells. In these transactions, 70,398 shares were bought while 17,413 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 83,549 while 46,674 shares were sold.