Mohawk Industries, Inc (NYSE: MHK)’s stock price has decreased by -4.99 compared to its previous closing price of 130.83. However, the company has seen a -3.44% decrease in its stock price over the last five trading sessions. seekingalpha.com reported 2025-01-20 that Mohawk Industries’ revenue is declining, and analysts expect further drops in both revenue and profits for the final quarter of the 2024 fiscal year. Despite cost-cutting initiatives showing some positive results, the overall economic conditions and consumer spending trends are unfavorable for Mohawk Industries. The company’s stock is attractively priced compared to peers, but the continued decline in revenue and potential economic downturn warrant a cautious ‘hold’ rating.
Is It Worth Investing in Mohawk Industries, Inc (NYSE: MHK) Right Now?
The price-to-earnings ratio for Mohawk Industries, Inc (NYSE: MHK) is 14.06x, which is above its average ratio. Moreover, the 36-month beta value for MHK is 1.42. Analysts have varying opinions on the stock, with 6 analysts rating it as a “buy,” 2 as “overweight,” 11 as “hold,” and 0 as “sell.”
The public float for MHK is 51.60M and currently, short sellers hold a 1.86% of that float. On January 24, 2025, MHK’s average trading volume was 756.36K shares.
MHK’s Market Performance
MHK’s stock has seen a -3.44% decrease for the week, with a 4.31% rise in the past month and a -18.72% fall in the past quarter. The volatility ratio for the week is 1.78%, and the volatility levels for the past 30 days are at 2.32% for Mohawk Industries, Inc The simple moving average for the past 20 days is 1.31% for MHK’s stock, with a -6.52% simple moving average for the past 200 days.
Analysts’ Opinion of MHK
Many brokerage firms have already submitted their reports for MHK stocks, with JP Morgan repeating the rating for MHK by listing it as a “Overweight.” The predicted price for MHK in the upcoming period, according to JP Morgan is $161 based on the research report published on January 10, 2025 of the current year 2025.
Wolfe Research, on the other hand, stated in their research note that they expect to see MHK reach a price target of $150. The rating they have provided for MHK stocks is “Outperform” according to the report published on January 08th, 2025.
Robert W. Baird gave a rating of “Outperform” to MHK, setting the target price at $196 in the report published on October 21st of the previous year.
MHK Trading at -3.75% from the 50-Day Moving Average
After a stumble in the market that brought MHK to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -24.34% of loss for the given period.
Volatility was left at 2.32%, however, over the last 30 days, the volatility rate increased by 1.78%, as shares surge +4.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -14.58% lower at present.
During the last 5 trading sessions, MHK fell by -3.15%, which changed the moving average for the period of 200-days by +1.11% in comparison to the 20-day moving average, which settled at $122.71. In addition, Mohawk Industries, Inc saw 4.34% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MHK starting from HELEN SUZANNE L, who sale 4,000 shares at the price of $127.75 back on Dec 13 ’24. After this action, HELEN SUZANNE L now owns 108,084 shares of Mohawk Industries, Inc, valued at $511,008 using the latest closing price.
HELEN SUZANNE L, the Possible Member of Group of Mohawk Industries, Inc, sale 4,000 shares at $126.11 during a trade that took place back on Dec 16 ’24, which means that HELEN SUZANNE L is holding 104,084 shares at $504,424 based on the most recent closing price.
Stock Fundamentals for MHK
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.25 for the gross margin
The net margin for Mohawk Industries, Inc stands at 0.05. The total capital return value is set at 0.07. Equity return is now at value 7.46, with 4.26 for asset returns.
Based on Mohawk Industries, Inc (MHK), the company’s capital structure generated 0.25 points at debt to capital in total, while cash flow to debt ratio is standing at 0.4. The debt to equity ratio resting at 0.33. The interest coverage ratio of the stock is 14.03.
Currently, EBITDA for the company is 531.94 million with net debt to EBITDA at 1.42. When we switch over and look at the enterprise to sales, we see a ratio of 0.93. The receivables turnover for the company is 5.29for trailing twelve months and the total asset turnover is 0.81. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.03.
Conclusion
To wrap up, the performance of Mohawk Industries, Inc (MHK) has been mixed in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
