CF Industries (NYSE:CF) Trading 6.6% Higher - Still a Buy?

Key Points

• CF Industries shares rose 6.6% to about $126.86, significantly above the consensus analyst price target of $116.56. Despite the gain, analysts maintain a consensus “Hold” rating.
• The company’s latest quarterly results missed expectations, with EPS of $4.73 versus the $5.63 consensus and revenue of $2.22 billion versus $2.45 billion expected, although revenue increased 17.6% year over year.
• CF Industries raised its quarterly dividend from $0.50 to $0.60 per share, representing an annualized dividend of $2.40 and a 1.9% yield.

CF Industries Holdings, Inc. (NYSE:CF - Get Free Report) shares traded up 6.6% during trading on Thursday . The stock traded as high as $129.18 and last traded at $126.8590. Approximately 415,607 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 3,391,676 shares. The stock had previously closed at $119.02.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on CF. UBS Group lifted their price objective on shares of CF Industries from $115.00 to $123.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Morgan Stanley cut their price target on CF Industries from $135.00 to $115.00 and set an "equal weight" rating for the company in a report on Tuesday, July 7th. Canadian Imperial Bank of Commerce reiterated a "neutral" rating and issued a $129.00 price target on shares of CF Industries in a research report on Friday, July 24th. Freedom Capital upgraded CF Industries from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 18th. Finally, Berenberg Bank boosted their price objective on CF Industries from $86.00 to $106.00 and gave the company a "hold" rating in a research note on Thursday, May 28th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $116.56.

CF Industries Stock Up 5.7%

The company has a current ratio of 4.86, a quick ratio of 4.32 and a debt-to-equity ratio of 0.36. The firm has a market cap of $19.04 billion, a P/E ratio of 9.33, a price-to-earnings-growth ratio of 0.23 and a beta of 0.39. The stock's fifty day moving average is $115.20 and its two-hundred day moving average is $115.34.

CF Industries (NYSE:CF - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The basic materials company reported $4.73 EPS for the quarter, missing the consensus estimate of $5.63 by ($0.90). The firm had revenue of $2.22 billion during the quarter, compared to the consensus estimate of $2.45 billion. CF Industries had a net margin of 27.12% and a return on equity of 24.41%. The firm's revenue for the quarter was up 17.6% on a year-over-year basis. During the same period in the previous year, the business earned $2.37 earnings per share. As a group, research analysts anticipate that CF Industries Holdings, Inc. will post 13.85 earnings per share for the current year.

CF Industries Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, August 14th will be given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.9%. This is a boost from CF Industries's previous quarterly dividend of $0.50. The ex-dividend date is Friday, August 14th. CF Industries's dividend payout ratio (DPR) is 17.79%.

Hedge Funds Weigh In On CF Industries

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CF. Quantitative Investment Management LLC bought a new position in CF Industries in the 2nd quarter worth about $3,447,000. Susquehanna Fundamental Investments LLC bought a new stake in shares of CF Industries during the 2nd quarter valued at about $693,000. Cookson Peirce & Co. Inc. boosted its position in shares of CF Industries by 4.5% during the 2nd quarter. Cookson Peirce & Co. Inc. now owns 9,999 shares of the basic materials company's stock valued at $1,082,000 after acquiring an additional 431 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of CF Industries by 2.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 12,239 shares of the basic materials company's stock worth $1,325,000 after purchasing an additional 287 shares in the last quarter. Finally, Trustmark Bank Trust Department grew its holdings in shares of CF Industries by 13.5% during the second quarter. Trustmark Bank Trust Department now owns 3,814 shares of the basic materials company's stock worth $413,000 after purchasing an additional 453 shares in the last quarter. 93.06% of the stock is currently owned by hedge funds and other institutional investors.

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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