CF Industries (NYSE:CF) Downgraded to "Hold" Rating by Zacks Research

Key Points

• CF Industries has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, reflecting a shift in analysts' confidence regarding the stock.
• Multiple analysts have revised their price targets for CF Industries, with Wells Fargo lowering their target to $101.00, while Bank of America adjusted it down to $82.00.
• Despite recent downgrades, CF Industries reported strong quarterly earnings, surpassing expectations with $2.37 EPS and a revenue of $1.89 billion, marking a 20.2% year-over-year increase.

Zacks Research downgraded shares of CF Industries (NYSE:CF - Free Report) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday, September 3rd,Zacks.com reports.

Several other brokerages have also commented on CF. Wall Street Zen lowered CF Industries from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Morgan Stanley set a $95.00 target price on CF Industries and gave the company an "equal weight" rating in a research report on Thursday, June 26th. Wolfe Research downgraded CF Industries from an "outperform" rating to a "peer perform" rating in a research report on Thursday, June 12th. UBS Group cut their price target on CF Industries from $103.00 to $101.00 and set a "neutral" rating on the stock in a research report on Thursday, August 7th. Finally, Royal Bank Of Canada set a $100.00 price target on CF Industries and gave the stock a "sector perform" rating in a research report on Monday, July 14th. Three equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, CF Industries presently has a consensus rating of "Hold" and a consensus price target of $95.00.

CF Industries Stock Up 1.1%

CF Industries stock traded up $0.89 during mid-day trading on Wednesday, reaching $85.55. 502,081 shares of the company were exchanged, compared to its average volume of 2,723,009. The business has a fifty day moving average of $89.70 and a 200 day moving average of $85.21. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.84 and a current ratio of 3.22. The firm has a market cap of $13.86 billion, a P/E ratio of 11.17 and a beta of 0.95. CF Industries has a 12-month low of $67.34 and a 12-month high of $104.45.

CF Industries (NYSE:CF - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The basic materials company reported $2.37 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 firm had revenue of $1.89 billion during the quarter, compared to analyst estimates of $1.73 billion. During the same quarter in the prior year, the business posted $2.30 EPS. The business's revenue for the quarter was up 20.2% compared to the same quarter last year. Research analysts anticipate that CF Industries will post 5.83 earnings per share for the current fiscal year.

CF Industries Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Friday, August 15th were given a dividend of $0.50 per share. The ex-dividend date was Friday, August 15th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.3%. CF Industries's dividend payout ratio (DPR) is 26.11%.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CF. Mercer Global Advisors Inc. ADV lifted its holdings in CF Industries by 24.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 15,942 shares of the basic materials company's stock valued at $1,360,000 after acquiring an additional 3,122 shares during the last quarter. Algert Global LLC purchased a new stake in CF Industries in the fourth quarter valued at approximately $1,220,000. Captrust Financial Advisors raised its position in CF Industries by 39.4% in the fourth quarter. Captrust Financial Advisors now owns 13,442 shares of the basic materials company's stock valued at $1,147,000 after purchasing an additional 3,801 shares during the period. Cetera Investment Advisers raised its position in CF Industries by 1.4% in the fourth quarter. Cetera Investment Advisers now owns 30,333 shares of the basic materials company's stock valued at $2,588,000 after purchasing an additional 425 shares during the period. Finally, EP Wealth Advisors LLC raised its position in CF Industries by 37.5% in the fourth quarter. EP Wealth Advisors LLC now owns 6,345 shares of the basic materials company's stock valued at $541,000 after purchasing an additional 1,731 shares during the period. 93.06% of the stock is currently owned by institutional investors and hedge funds.

About CF Industries

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.