Bank of America Forecasts Strong Price Appreciation for CF Industries (NYSE:CF) Stock

Key Points

• Bank of America raised its price target on CF Industries from $103 to $106, though that still implies a downside from the stock’s current level.
• CF Industries delivered strong quarterly results, reporting EPS of $3.98 versus estimates of $2.63 and revenue of $1.99 billion, with revenue up 19.4% year over year.
• Analyst sentiment remains mixed overall: the stock has an average rating of Hold and an average price target of $118.47, while recent insider sales and heavy institutional ownership were also highlighted.

CF Industries (NYSE:CF - Get Free Report) had its target price boosted by equities research analysts at Bank of America from $103.00 to $106.00 in a research note issued on Thursday,MarketScreener reports. Bank of America's target price points to a potential downside of 13.99% from the stock's current price.

CF has been the topic of a number of other research reports. Weiss Ratings raised CF Industries from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 13th. Rothschild & Co Redburn set a $72.00 price target on CF Industries in a report on Wednesday, February 4th. Royal Bank Of Canada increased their price objective on CF Industries from $100.00 to $125.00 and gave the company a "sector perform" rating in a research report on Tuesday, April 7th. Mizuho raised their price objective on shares of CF Industries from $100.00 to $105.00 and gave the stock an "underperform" rating in a research note on Tuesday, March 31st. Finally, UBS Group cut their target price on shares of CF Industries from $140.00 to $130.00 in a research note on Friday, May 8th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $118.47.

CF Industries Stock Performance

NYSE:CF opened at $123.25 on Thursday. The firm has a market capitalization of $18.93 billion, a PE ratio of 11.08 and a beta of 0.42. CF Industries has a 1 year low of $75.42 and a 1 year high of $141.96. The company has a current ratio of 3.54, a quick ratio of 3.15 and a debt-to-equity ratio of 0.39. The firm's fifty day simple moving average is $123.21 and its 200 day simple moving average is $98.55.

CF Industries (NYSE:CF - Get Free Report) last released its earnings results on Wednesday, May 6th. The basic materials company reported $3.98 earnings per share for the quarter, topping analysts' consensus estimates of $2.63 by $1.35. The firm had revenue of $1.99 billion during the quarter, compared to analyst estimates of $1.84 billion. CF Industries had a net margin of 23.73% and a return on equity of 20.93%. The business's revenue was up 19.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.85 EPS. On average, sell-side analysts anticipate that CF Industries will post 13.9 EPS for the current year.

Insider Transactions at CF Industries

In related news, VP Richard A. Hoker sold 6,184 shares of the firm's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $109.33, for a total value of $676,096.72. Following the completion of the transaction, the vice president directly owned 34,535 shares of the company's stock, valued at $3,775,711.55. This trade represents a 15.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Bert A. Frost sold 10,000 shares of CF Industries stock in a transaction on Friday, March 6th. The stock was sold at an average price of $119.01, for a total transaction of $1,190,100.00. Following the sale, the executive vice president owned 87,256 shares in the company, valued at $10,384,336.56. This represents a 10.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 82,408 shares of company stock valued at $9,971,298. Company insiders own 0.51% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CF. Principal Financial Group Inc. boosted its stake in CF Industries by 11.5% in the third quarter. Principal Financial Group Inc. now owns 232,647 shares of the basic materials company's stock valued at $20,868,000 after acquiring an additional 23,942 shares during the last quarter. Assetmark Inc. raised its position in shares of CF Industries by 878.2% during the 3rd quarter. Assetmark Inc. now owns 17,941 shares of the basic materials company's stock valued at $1,609,000 after acquiring an additional 16,107 shares during the last quarter. Van ECK Associates Corp lifted its stake in shares of CF Industries by 19.8% in the 3rd quarter. Van ECK Associates Corp now owns 369,321 shares of the basic materials company's stock valued at $33,128,000 after purchasing an additional 61,140 shares during the period. Inspire Advisors LLC bought a new stake in shares of CF Industries in the third quarter valued at about $677,000. Finally, KBC Group NV grew its holdings in shares of CF Industries by 26.9% during the fourth quarter. KBC Group NV now owns 1,170,171 shares of the basic materials company's stock worth $90,501,000 after buying an additional 248,020 shares in the last quarter. Institutional investors own 93.06% of the company's stock.

CF Industries Company Profile

CF Industries Holdings, Inc is a leading global manufacturer of hydrogen and nitrogen products for agricultural and industrial customers. The company specializes in the production of ammonia, granular urea, urea ammonium nitrate (UAN), nitric acid and ammonium nitrate, which serve as key inputs for fertilizer blends, industrial chemicals and other downstream applications.

Headquartered in Deerfield, Illinois, CF Industries operates production facilities and distribution terminals across North America and the United Kingdom.

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