CF Industries (NYSE:CF) Shares Gap Down - Here's What Happened

Key Points

• Shares gapped down prior to trading, opening at $115.22 from a $124.90 close (around a 6.5% decline), and were last quoted near $117.94 on volume of about 1.3 million shares.
• Analysts are mixed with a consensus rating of "Hold" and an average price target of $101.73; the coverage breakdown is 1 Strong Buy, 4 Buy, 11 Hold and 3 Sell.
• Fundamentals remain solid: the most recent quarter beat estimates (EPS $2.59 vs. $2.53; revenue $1.87B, up 22.8% year‑over‑year) and the company pays a $0.50 quarterly dividend (annualized yield ~1.7%).

Shares of CF Industries Holdings, Inc. (NYSE:CF - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $124.90, but opened at $115.22. CF Industries shares last traded at $117.9350, with a volume of 1,298,583 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Bank of America increased their price target on shares of CF Industries from $86.00 to $103.00 and gave the stock an "underperform" rating in a research note on Wednesday, March 18th. Rothschild & Co Redburn set a $72.00 target price on shares of CF Industries in a report on Wednesday, February 4th. Wells Fargo & Company increased their target price on shares of CF Industries from $100.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, February 20th. The Goldman Sachs Group reissued a "neutral" rating and set a $103.00 price target on shares of CF Industries in a report on Friday, February 20th. Finally, Zacks Research cut CF Industries from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $101.73.

CF Industries Stock Down 6.5%

The company has a market capitalization of $17.95 billion, a price-to-earnings ratio of 12.94 and a beta of 0.68. The company has a current ratio of 3.37, a quick ratio of 2.93 and a debt-to-equity ratio of 0.41. The firm's 50 day simple moving average is $100.18 and its 200-day simple moving average is $88.95.

CF Industries (NYSE:CF - Get Free Report) last released its earnings results on Wednesday, February 18th. The basic materials company reported $2.59 EPS for the quarter, topping the consensus estimate of $2.53 by $0.06. CF Industries had a net margin of 20.54% and a return on equity of 19.84%. The company had revenue of $1.87 billion during the quarter, compared to analysts' expectations of $1.78 billion. During the same quarter last year, the business earned $1.89 EPS. The business's revenue was up 22.8% on a year-over-year basis. On average, sell-side analysts anticipate that CF Industries Holdings, Inc. will post 5.83 EPS for the current fiscal year.

CF Industries Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 13th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend was Friday, February 13th. CF Industries's payout ratio is currently 22.22%.

Insiders Place Their Bets

In related news, VP Richard A. Hoker sold 6,184 shares of CF Industries stock in a transaction that occurred 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 sale, the vice president directly owned 34,535 shares in the company, valued at $3,775,711.55. The trade was a 15.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Bert A. Frost sold 10,000 shares of the company's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $119.01, for a total value of $1,190,100.00. Following the transaction, the executive vice president directly owned 87,256 shares in the company, valued at $10,384,336.56. This represents a 10.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 82,408 shares of company stock worth $9,971,298. Company insiders own 0.71% of the company's stock.

Institutional Investors Weigh In On CF Industries

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Harbor Capital Advisors Inc. increased its holdings in shares of CF Industries by 78.0% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 292 shares of the basic materials company's stock valued at $26,000 after purchasing an additional 128 shares in the last quarter. True Wealth Design LLC boosted its holdings in CF Industries by 396.2% during the third quarter. True Wealth Design LLC now owns 387 shares of the basic materials company's stock worth $35,000 after buying an additional 309 shares in the last quarter. Eastern Bank acquired a new position in CF Industries during the third quarter worth about $35,000. Peterson Wealth Services grew its position in CF Industries by 451.3% during the third quarter. Peterson Wealth Services now owns 441 shares of the basic materials company's stock worth $40,000 after buying an additional 361 shares during the period. Finally, Root Financial Partners LLC purchased a new position in CF Industries in the third quarter valued at about $41,000. Institutional investors and hedge funds own 93.06% of the company's stock.

About CF Industries

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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