American Axle & Manufacturing (NYSE:AXL) Trading Down 5.8% - Should You Sell?

Key Points

• American Axle & Manufacturing's stock price has declined by 5.8%, trading at around $5.54 after a significant drop in trading volume.
• Despite the recent stock price drop, analysts have rated the stock with a consensus of "Hold" and a price target average of $7.00, suggesting potential for recovery.
• The company reported a 0.21 EPS, surpassing estimates, but revenue fell 5.9% year-over-year, demonstrating challenges in maintaining growth.

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL - Get Free Report)'s stock price fell 5.8% during mid-day trading on Thursday . The company traded as low as $5.57 and last traded at $5.54. 1,077,398 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 3,057,460 shares. The stock had previously closed at $5.88.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on AXL shares. Weiss Ratings reiterated a "hold (c-)" rating on shares of American Axle & Manufacturing in a research note on Saturday, September 27th. Stifel Nicolaus started coverage on shares of American Axle & Manufacturing in a research report on Thursday, August 21st. They issued a "hold" rating and a $6.00 price objective on the stock. Royal Bank Of Canada raised shares of American Axle & Manufacturing from a "sector perform" rating to an "outperform" rating and increased their target price for the company from $6.00 to $8.00 in a research report on Tuesday, September 2nd. Wall Street Zen upgraded shares of American Axle & Manufacturing from a "buy" rating to a "strong-buy" rating in a research note on Friday, October 3rd. Finally, UBS Group raised their target price on shares of American Axle & Manufacturing from $7.50 to $8.50 and gave the company a "buy" rating in a research note on Monday. Three research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, American Axle & Manufacturing currently has a consensus rating of "Hold" and a consensus price target of $7.00.

American Axle & Manufacturing Stock Down 3.1%

The company has a debt-to-equity ratio of 3.86, a current ratio of 1.77 and a quick ratio of 1.40. The firm has a market capitalization of $676.36 million, a price-to-earnings ratio of 16.77, a price-to-earnings-growth ratio of 0.67 and a beta of 1.53. The business has a fifty day moving average price of $5.78 and a two-hundred day moving average price of $4.72.

American Axle & Manufacturing (NYSE:AXL - Get Free Report) last issued its quarterly earnings results on Friday, August 8th. The auto parts company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. American Axle & Manufacturing had a net margin of 0.73% and a return on equity of 8.90%. The company had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter in the prior year, the company earned $0.19 EPS. American Axle & Manufacturing's quarterly revenue was down 5.9% on a year-over-year basis. American Axle & Manufacturing has set its FY 2025 guidance at EPS. On average, equities analysts expect that American Axle & Manufacturing Holdings, Inc. will post 0.57 earnings per share for the current year.

Institutional Trading of American Axle & Manufacturing

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Whitebox Advisors LLC grew its holdings in American Axle & Manufacturing by 23.0% during the second 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 period. American Century Companies Inc. grew its position in shares of American Axle & Manufacturing by 6.9% in the second quarter. American Century Companies Inc. now owns 4,578,385 shares of the auto parts company's stock valued at $18,680,000 after purchasing an additional 294,805 shares during the period. Fuller & Thaler Asset Management Inc. raised its position in shares of American Axle & Manufacturing by 1.4% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 3,286,516 shares of the auto parts company's stock worth $13,376,000 after purchasing an additional 44,663 shares during the last quarter. Geode Capital Management LLC boosted its holdings in American Axle & Manufacturing by 0.9% in the 2nd quarter. Geode Capital Management LLC now owns 2,752,266 shares of the auto parts company's stock worth $11,232,000 after buying an additional 23,783 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its holdings in American Axle & Manufacturing by 20.1% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,649,397 shares of the auto parts company's stock worth $10,783,000 after buying an additional 444,134 shares during the last quarter. 91.41% of the stock is owned by institutional investors and hedge funds.

American Axle & Manufacturing Company Profile

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.

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