CF Industries (NYSE:CF) Downgraded by BNP Paribas to Hold

Key Points

• CF Industries has been downgraded by BNP Paribas from a "strong-buy" rating to a "hold" rating, signaling a shift in analyst sentiment towards the stock.
• The company recently reported earnings that exceeded analyst expectations, with a net revenue of $1.89 billion and a net margin of 20.19%.
• CF Industries announced a stock buyback program allowing the repurchase of $2.00 billion worth of shares, indicating management's confidence in the company's value.

BNP Paribas downgraded shares of CF Industries (NYSE:CF - Free Report) from a strong-buy rating to a hold rating in a report released on Thursday morning,Zacks.com reports.

Several other equities research analysts have also recently commented on CF. Morgan Stanley set a $95.00 price target on shares of CF Industries and gave the stock an "equal weight" rating in a research report on Thursday, June 26th. Bank of America reiterated an "underperform" rating and issued a $82.00 target price (down from $93.00) on shares of CF Industries in a report on Thursday, August 14th. Wall Street Zen lowered shares of CF Industries from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Wolfe Research lowered shares of CF Industries from an "outperform" rating to a "peer perform" rating in a research report on Thursday, June 12th. Finally, Royal Bank Of Canada set a $100.00 price target on CF Industries and gave the company a "sector perform" rating in a report on Monday, July 14th. Three analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, CF Industries presently has a consensus rating of "Hold" and an average target price of $95.00.

CF Industries Price Performance

NYSE:CF traded down $0.23 during midday trading on Thursday, hitting $86.40. 1,970,366 shares of the stock were exchanged, compared to its average volume of 2,749,741. The company has a market capitalization of $13.99 billion, a price-to-earnings ratio of 11.28 and a beta of 0.94. The company has a current ratio of 3.22, a quick ratio of 2.84 and a debt-to-equity ratio of 0.38. CF Industries has a one year low of $67.34 and a one year high of $104.45. The business has a 50-day moving average price of $91.55 and a two-hundred day moving average price of $84.99.

CF Industries (NYSE:CF - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The basic materials company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.35 by $0.02. CF Industries had a return on equity of 17.10% and a net margin of 20.19%.The company had revenue of $1.89 billion for the quarter, compared to analysts' expectations of $1.73 billion. During the same period last year, the firm earned $2.30 EPS. The firm's revenue for the quarter was up 20.2% on a year-over-year basis. Sell-side analysts predict that CF Industries will post 5.83 EPS for the current year.

CF Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be issued a dividend of $0.50 per share. The ex-dividend date is Friday, August 15th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.3%. CF Industries's payout ratio is currently 26.11%.

CF Industries declared that its board has authorized a stock repurchase plan on Wednesday, May 7th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the basic materials company to purchase up to 14.7% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Insider Transactions at CF Industries

In other CF Industries news, EVP Susan L. Menzel sold 10,000 shares of the firm's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $100.23, for a total transaction of $1,002,300.00. Following the completion of the sale, the executive vice president directly owned 87,923 shares in the company, valued at approximately $8,812,522.29. This trade represents a 10.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.71% of the company's stock.

Institutional Trading of CF Industries

Hedge funds have recently made changes to their positions in the stock. Curat Global LLC purchased a new position in CF Industries during the first quarter valued at approximately $25,000. Trust Co. of Toledo NA OH acquired a new stake in shares of CF Industries during the 2nd quarter valued at $26,000. Zions Bancorporation National Association UT purchased a new position in shares of CF Industries during the 1st quarter valued at $27,000. Golden State Wealth Management LLC grew its holdings in shares of CF Industries by 119.8% during the 1st quarter. Golden State Wealth Management LLC now owns 378 shares of the basic materials company's stock valued at $30,000 after acquiring an additional 206 shares in the last quarter. Finally, TCTC Holdings LLC increased its stake in shares of CF Industries by 114.1% in the first quarter. TCTC Holdings LLC now owns 379 shares of the basic materials company's stock worth $30,000 after acquiring an additional 202 shares during the last quarter. 93.06% of the stock is owned by hedge funds and other institutional investors.

CF Industries Company Profile

CF Industries Holdings, Inc, together with its subsidiaries, engages in the manufacture and sale of hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities in North America, Europe, and internationally. It operates through Ammonia, Granular Urea, UAN, AN, and Other segments.