Freightcar America (NASDAQ:RAIL) Stock Rating Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Freightcar America from “hold” to “sell,” joining Weiss Ratings and Zacks Research, which also issued bearish assessments. The stock has a consensus “Sell” rating.
• RAIL shares opened at $4.17, well below their 52-week high of $14.90, with a market capitalization of approximately $136.7 million. The company reported a quarterly loss of $0.02 per share despite revenue exceeding analyst estimates.
• Freightcar America remains unprofitable, with a negative net margin of 2.69% and return on equity of 15.23% negative; analysts expect a full-year loss of $0.11 per share. Institutional investors and hedge funds own about 31.96% of the stock.

Freightcar America (NASDAQ:RAIL - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other research firms have also recently commented on RAIL. Weiss Ratings cut shares of Freightcar America from a "hold (c)" rating to a "sell (d)" rating in a research note on Tuesday, August 4th. Zacks Research lowered shares of Freightcar America from a "hold" rating to a "strong sell" rating in a research note on Wednesday, October 21st. Two equities research analysts have rated the stock with a Sell rating. According to MarketBeat.com, the company presently has a consensus rating of "Sell".

Freightcar America Price Performance

Shares of RAIL opened at $4.17 on Friday. The firm has a market capitalization of $136.73 million, a price-to-earnings ratio of -7.72 and a beta of 1.42. The company has a debt-to-equity ratio of 2.70, a quick ratio of 1.12 and a current ratio of 1.81. Freightcar America has a one year low of $3.85 and a one year high of $14.90. The stock's fifty day moving average is $6.38 and its 200-day moving average is $8.63.

Freightcar America (NASDAQ:RAIL - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The transportation company reported ($0.02) earnings per share for the quarter. The company had revenue of $113.14 million for the quarter, compared to the consensus estimate of $110.41 million. Freightcar America had a negative net margin of 2.69% and a negative return on equity of 15.23%. Equities analysts anticipate that Freightcar America will post -0.11 EPS for the current year.

Hedge Funds Weigh In On Freightcar America

Several hedge funds have recently modified their holdings of RAIL. Ancora Advisors LLC bought a new stake in Freightcar America in the second quarter worth about $62,000. Sigma Planning Corp acquired a new stake in Freightcar America in the 2nd quarter valued at about $111,000. Deutsche Bank AG acquired a new stake in Freightcar America in the 2nd quarter valued at about $144,000. Bank of America Corp DE bought a new position in shares of Freightcar America during the 2nd quarter valued at about $177,000. Finally, Canada Pension Plan Investment Board bought a new position in shares of Freightcar America during the 2nd quarter valued at about $249,000. 31.96% of the stock is currently owned by institutional investors and hedge funds.

Freightcar America Company Profile

FreightCar America, Inc designs and manufactures freight railcars for the North American rail transportation industry. Its product portfolio has included aluminum and steel railcars, such as open-top hopper cars, gondolas, flat cars and other specialized freight equipment used to transport coal, aggregates, metals, agricultural products and other bulk commodities.

The company serves major railroads, railcar leasing companies and industrial shippers. Its railcars are designed for applications that require durable, high-capacity equipment, with product offerings tailored to commodity transportation and intermodal or specialized freight needs.

FreightCar America traces its roots to the early 1900s and has historically operated manufacturing and engineering activities in the United States and Mexico.

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