Mohawk Industries (MHK) Rose following Solid Earnings Results
Ariel Investments, an investment management company, released its “Ariel Focus Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund increased +11.05% compared to +9.50% and +11.69% returns for the Russell 1000 Value Index and the S&P 500 Index, respectively. The fund increased by +6.97 over the trailing one-year underperforming both indexes’ +11.46% and +26.29% returns. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Focus Fund featured stocks like Mohawk Industries, Inc. (NYSE:MHK) in the fourth quarter 2023 investor letter. Headquartered in Calhoun, Georgia, Mohawk Industries, Inc. (NYSE:MHK) designs and manufactures flooring products. On March 14, 2024, Mohawk Industries, Inc. (NYSE:MHK) stock closed at $116.95 per share. One-month return of Mohawk Industries, Inc. (NYSE:MHK) was 1.33%, and its shares gained 23.95% of their value over the last 52 weeks. Mohawk Industries, Inc. (NYSE:MHK) has a market capitalization of $7.449 billion.
Ariel Focus Fund stated the following regarding Mohawk Industries, Inc. (NYSE:MHK) in its fourth quarter 2023 investor letter:
"Additionally, manufacturer and distributor of floorcovering products, Mohawk Industries, Inc. (NYSE:MHK), traded up in the period following a top- and bottom-line earnings beat. Although consumer demand and pricing remains muted due to a challenging macro backdrop, higher than expected sales volumes and cost deflation more than offset these headwinds. Management also expects 2024 margins will experience tailwinds from lower cost inventory and remains optimistic volumes will increase as the housing market improves over time. In our view, MHK’s healthy balance sheet and success managing through economic cycles have the company well positioned to benefit from long-term growth in residential remodeling, new home construction and commercial projects. At current levels, MHK is trading at a -57% discount to our estimate of private market value."
A person standing in a showroom admiring the range of laminate flooring.
Mohawk Industries, Inc. (NYSE:MHK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Mohawk Industries, Inc. (NYSE:MHK) was held by 40 hedge fund portfolios, compared to 36 in the previous quarter, according to our database.
We discussed Mohawk Industries, Inc. (NYSE:MHK) in another article and shared Ariel Focus Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
