CF Industries (NYSE:CF) Shares Gap Down on Insider Selling

Key Points

• Insider selling by two executive vice presidents — Bert A. Frost (6,250 shares at $136.69) and Susan L. Menzel (18,041 shares at $136.06) on March 12 — preceded a gap down from $129.57 to $123.93, with the stock trading down about 5.1% on elevated volume.
• Analysts are mixed: CF has an average rating of "Hold" with an average target price of $96.87, though some firms (e.g., Barclays) raised targets to $120 while others remain significantly lower.
• Fundamentals show a recent quarter beat (EPS $2.59 vs. $2.53, revenue $1.87B, +22.8% YoY), a market cap of $18.9B, P/E of 13.68, and a quarterly dividend of $0.50 (annualized yield ~1.6%).

Shares of CF Industries Holdings, Inc. (NYSE:CF - Get Free Report) gapped down prior to trading on Monday following insider selling activity. The stock had previously closed at $129.57, but opened at $123.93. CF Industries shares last traded at $123.67, with a volume of 1,524,764 shares.

Specifically, EVP Bert A. Frost sold 6,250 shares of the business's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $136.69, for a total transaction of $854,312.50. Following the completion of the sale, the executive vice president directly owned 75,472 shares of the company's stock, valued at approximately $10,316,267.68. The trade was a 7.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Susan L. Menzel sold 18,041 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $136.06, for a total value of $2,454,658.46. Following the completion of the transaction, the executive vice president owned 55,762 shares in the company, valued at $7,586,977.72. This represents a 24.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on CF shares. Barclays upped their price target on CF Industries from $100.00 to $120.00 and gave the stock an "overweight" rating in a report on Tuesday, March 3rd. Scotiabank lifted their price objective on shares of CF Industries from $82.00 to $85.00 and gave the stock a "sector perform" rating in a report on Monday, February 23rd. Wall Street Zen downgraded shares of CF Industries from a "buy" rating to a "hold" rating in a report on Sunday, December 14th. Rothschild & Co Redburn set a $72.00 price target on shares of CF Industries in a research report on Wednesday, February 4th. Finally, Weiss Ratings upgraded shares of CF Industries from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $96.87.

CF Industries Trading Down 5.1%

The stock has a market capitalization of $18.89 billion, a PE ratio of 13.68 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 has a 50-day moving average price of $95.76 and a 200-day moving average price of $87.61.

CF Industries (NYSE:CF - Get Free Report) last issued its quarterly earnings results on Wednesday, February 18th. The basic materials company reported $2.59 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $1.78 billion. During the same period in the previous year, the firm earned $1.89 EPS. The firm's quarterly revenue was up 22.8% on a year-over-year basis. As a group, equities analysts forecast that CF Industries Holdings, Inc. will post 5.83 EPS for the current fiscal year.

CF Industries Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Friday, February 13th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Friday, February 13th. CF Industries's dividend payout ratio is currently 22.22%.

Institutional Investors Weigh In On CF Industries

Several large investors have recently modified their holdings of the stock. Harbor Capital Advisors Inc. grew its holdings in CF Industries by 78.0% during the third 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 during the period. True Wealth Design LLC lifted its position in shares of CF Industries by 396.2% during the 3rd quarter. True Wealth Design LLC now owns 387 shares of the basic materials company's stock valued at $35,000 after buying an additional 309 shares during the last quarter. Eastern Bank purchased a new position in shares of CF Industries during the 3rd quarter valued at $35,000. Peterson Wealth Services grew its stake in shares of CF Industries by 451.3% during the 3rd quarter. Peterson Wealth Services now owns 441 shares of the basic materials company's stock worth $40,000 after acquiring an additional 361 shares during the period. Finally, Root Financial Partners LLC purchased a new stake in CF Industries in the 3rd quarter worth about $41,000. Hedge funds and other institutional investors 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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