CF Industries (NYSE:CF) Trading 7.9% Higher - Still a Buy?

Key Points

• CF Industries shares jumped 7.9% on Wednesday to about $118.70 (intraday high $119.87) while volume of ~2.62M shares was roughly 16% below the daily average.
• Analysts’ consensus rating is Hold with an average price target of $96.87, based on 1 Strong Buy, 3 Buy, 13 Hold and 2 Sell ratings.
• CF beat quarterly estimates—EPS $2.59 vs $2.53 and revenue $1.87B vs $1.78B (revenue +22.8% YoY)—and pays a $0.50 quarterly dividend ($2.00 annual, 1.7% yield).

CF Industries Holdings, Inc. (NYSE:CF - Get Free Report)'s share price was up 7.9% during trading on Wednesday . The company traded as high as $119.87 and last traded at $118.7030. Approximately 2,618,663 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 3,116,006 shares. The stock had previously closed at $110.05.

Analyst Upgrades and Downgrades

CF has been the subject of several analyst reports. Wall Street Zen downgraded shares of CF Industries from a "buy" rating to a "hold" rating in a report on Sunday, December 14th. JPMorgan Chase & Co. boosted their price objective on CF Industries from $80.00 to $94.00 and gave the stock a "neutral" rating in a report on Friday, February 20th. Royal Bank Of Canada lifted their target price on shares of CF Industries from $95.00 to $100.00 and gave the company a "sector perform" rating in a research report on Monday, February 23rd. Zacks Research lowered shares of CF Industries from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 10th. Finally, Wells Fargo & Company lifted their price target 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. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, CF Industries presently has an average rating of "Hold" and a consensus price target of $96.87.

CF Industries Stock Performance

The firm has a market cap of $18.16 billion, a PE ratio of 13.16 and a beta of 0.68. The business has a 50-day simple moving average of $92.74 and a 200 day simple moving average of $86.72. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.37 and a quick ratio of 2.93.

CF Industries (NYSE:CF - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The basic materials company reported $2.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.53 by $0.06. The business had revenue of $1.87 billion for the quarter, compared to analysts' expectations of $1.78 billion. CF Industries had a return on equity of 19.84% and a net margin of 20.54%.The company's revenue for the quarter was up 22.8% on a year-over-year basis. During the same period in the prior year, the firm earned $1.89 EPS. Equities research analysts forecast that CF Industries Holdings, Inc. will post 5.83 EPS for the current year.

CF Industries Dividend Announcement

The company also recently declared 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. The ex-dividend date of this dividend was Friday, February 13th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.7%. CF Industries's dividend payout ratio is presently 22.22%.

Insider Buying and Selling

In other CF Industries news, VP Erik M. Mayer sold 2,200 shares of the firm's stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $116.25, for a total value of $255,750.00. Following the completion of the sale, the vice president owned 7,841 shares of the company's stock, valued at approximately $911,516.25. This trade represents a 21.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Michael Patrick Mcgrane sold 3,666 shares of the business's stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $116.50, for a total value of $427,089.00. Following the sale, the senior vice president owned 19,161 shares in the company, valued at $2,232,256.50. The trade was a 16.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 47,118 shares of company stock valued at $5,280,588 in the last 90 days. 0.71% of the stock is owned by insiders.

Institutional Investors Weigh In On CF Industries

A number of institutional investors have recently made changes to their positions in CF. Harbor Capital Advisors Inc. raised 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 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 worth $35,000 after acquiring an additional 309 shares in the last quarter. Eastern Bank acquired a new stake in shares of CF Industries during the 3rd quarter worth about $35,000. Hantz Financial Services Inc. increased its position in shares of CF Industries by 46.3% during the fourth quarter. Hantz Financial Services Inc. now owns 493 shares of the basic materials company's stock worth $38,000 after purchasing an additional 156 shares in the last quarter. Finally, Peterson Wealth Services grew its stake in 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 buying an additional 361 shares during the last quarter. 93.06% of the stock is currently owned by institutional investors and hedge funds.

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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