Freightcar America (NASDAQ:RAIL) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Freightcar America from “hold” to “strong sell,” while Weiss Ratings also lowered its rating to “sell.” MarketBeat reports a consensus “Sell” rating from two analysts.
• RAIL shares opened at $4.30, well below their 50-day and 200-day moving averages of $6.73 and $7.77, respectively. The stock’s 52-week range is $3.85 to $14.90, with a market capitalization of approximately $141 million.
• Freightcar America reported a quarterly loss of $0.02 per share despite revenue of $113.14 million, which exceeded analyst expectations. Institutional investors and hedge funds own about 31.96% of the company, with several funds initiating or increasing positions during the second quarter.

Freightcar America (NASDAQ:RAIL - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Wednesday, Zacks reports.

Separately, Weiss Ratings lowered shares of Freightcar America from a "hold (c)" rating to a "sell (d)" rating in a report on Tuesday, August 4th. Two investment analysts have rated the stock with a Sell rating. According to MarketBeat.com, Freightcar America has a consensus rating of "Sell".

Freightcar America Price Performance

Shares of NASDAQ RAIL opened at $4.30 on Wednesday. The company's fifty day moving average is $6.73 and its two-hundred day moving average is $7.77. Freightcar America has a one year low of $3.85 and a one year high of $14.90. The company has a debt-to-equity ratio of 2.70, a quick ratio of 1.12 and a current ratio of 1.81. The firm has a market capitalization of $141.00 million, a P/E ratio of -7.96 and a beta of 1.42.

Freightcar America (NASDAQ:RAIL - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The transportation company reported ($0.02) EPS for the quarter. Freightcar America had a negative return on equity of 15.23% and a negative net margin of 2.69%. The firm had revenue of $113.14 million for the quarter, compared to analysts' expectations of $110.41 million. Analysts forecast that Freightcar America will post 0.21 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RAIL. BlackRock Inc. acquired a new stake in Freightcar America during the second quarter worth about $9,338,000. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Freightcar America in the second quarter worth approximately $3,584,000. Nwam LLC acquired a new stake in shares of Freightcar America in the second quarter valued at $3,123,000. Penn Capital Management Company LLC lifted its holdings in Freightcar America by 134.7% in the 2nd quarter. Penn Capital Management Company LLC now owns 339,200 shares of the transportation company's stock valued at $3,304,000 after acquiring an additional 194,684 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Freightcar America during the second quarter valued at approximately $1,087,000. 31.96% of the stock is owned by institutional investors and hedge funds.

About Freightcar America

FreightCar America, Inc is a railcar manufacturer that has historically designed and produced freight transportation equipment for the North American rail industry. Its customers have included railroads, railcar leasing companies and industrial shippers that use specialized railcars to move bulk commodities, manufactured goods and other freight.

The company's product portfolio has included aluminum-bodied open-top hopper cars, gondolas, covered hopper cars, boxcars, coil cars, flatcars and intermodal railcars.

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