American Axle & Manufacturing (NYSE:AXL) Shares Down 4.1% - Should You Sell?

Key Points

• American Axle & Manufacturing's stock fell 4.1% on Monday, closing at $5.51 with a trading volume decline of 24% from its average.
• Analysts have mixed ratings on the stock, with a consensus rating of "Hold" and an average price target of $6.25, while Morgan Stanley recently lowered their target from $8.00 to $7.50.
• The company reported earnings of $0.21 EPS for the last quarter, beating estimates, but revenues were down 5.9% year-over-year.

Shares of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL - Get Free Report) were down 4.1% on Monday . The stock traded as low as $5.50 and last traded at $5.51. Approximately 2,244,179 shares traded hands during trading, a decline of 24% from the average daily volume of 2,956,151 shares. The stock had previously closed at $5.74.

Analysts Set New Price Targets

Several brokerages have commented on AXL. Cowen restated a "hold" rating on shares of American Axle & Manufacturing in a research note on Monday, May 5th. UBS Group restated a "buy" rating on shares of American Axle & Manufacturing in a research note on Sunday, August 10th. Stifel Nicolaus began coverage on American Axle & Manufacturing in a research note on Thursday. They issued a "hold" rating and a $6.00 target price for the company. Morgan Stanley cut their target price on American Axle & Manufacturing from $8.00 to $7.50 and set an "overweight" rating for the company in a research note on Monday, May 19th. Finally, Wall Street Zen upgraded American Axle & Manufacturing from a "hold" rating to a "buy" rating in a research note on Saturday, August 16th. Two investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $6.21.

American Axle & Manufacturing Trading Up 2.0%

The stock has a market cap of $690.01 million, a PE ratio of 17.10, a PEG ratio of 0.65 and a beta of 1.59. The company has a current ratio of 1.77, a quick ratio of 1.40 and a debt-to-equity ratio of 3.86. The firm has a fifty day simple moving average of $4.71 and a two-hundred day simple moving average of $4.45.

American Axle & Manufacturing (NYSE:AXL - Get Free Report) last announced its quarterly earnings data on Friday, August 8th. The auto parts company reported $0.21 earnings per share for the quarter, beating analysts' consensus estimates of $0.14 by $0.07. The company had revenue of $1.54 billion for the quarter, compared to analysts' expectations of $1.54 billion. American Axle & Manufacturing had a return on equity of 8.90% and a net margin of 0.73%.American Axle & Manufacturing's revenue for the quarter was down 5.9% compared to the same quarter last year. During the same period last year, the firm posted $0.19 EPS. American Axle & Manufacturing has set its FY 2025 guidance at EPS. As a group, equities analysts expect that American Axle & Manufacturing Holdings, Inc. will post 0.57 earnings per share for the current fiscal year.

Hedge Funds Weigh In On American Axle & Manufacturing

A number of large investors have recently modified their holdings of AXL. Arrowstreet Capital Limited Partnership raised its holdings in shares of American Axle & Manufacturing by 615.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,879,668 shares of the auto parts company's stock valued at $7,669,000 after buying an additional 1,617,069 shares in the last quarter. HITE Hedge Asset Management LLC grew its position in American Axle & Manufacturing by 465.1% during the 1st quarter. HITE Hedge Asset Management LLC now owns 1,944,668 shares of the auto parts company's stock worth $7,915,000 after acquiring an additional 1,600,512 shares during the last quarter. Whitebox Advisors LLC grew its position in American Axle & Manufacturing by 23.0% during the 2nd quarter. Whitebox Advisors LLC now owns 5,599,014 shares of the auto parts company's stock worth $22,844,000 after acquiring an additional 1,047,820 shares during the last quarter. JB Capital Partners LP grew its position in American Axle & Manufacturing by 622.6% during the 1st quarter. JB Capital Partners LP now owns 957,500 shares of the auto parts company's stock worth $3,897,000 after acquiring an additional 825,000 shares during the last quarter. Finally, Boothbay Fund Management LLC bought a new position in American Axle & Manufacturing during the 2nd quarter worth approximately $3,231,000. 91.41% of the stock is owned by hedge funds and other institutional investors.

About American Axle & Manufacturing

American Axle & Manufacturing Holdings, Inc engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the Driveline and Metal Forming segments. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles.