FCG Investment Co Invests $1.36 Million in CF Industries Holdings, Inc. $CF

Key Points

• FCG Investment Co made a significant investment of $1.36 million in CF Industries Holdings, purchasing 17,413 shares of the company during the first quarter.
• CF Industries recently declared a quarterly dividend of $0.50 per share and announced a $2 billion share buyback program indicating management's belief that the shares are undervalued.
• Analyst ratings for CF Industries have shifted, with several firms downgrading their ratings, resulting in an average rating of "Hold" and a consensus price target of $95.00.

FCG Investment Co acquired a new stake in CF Industries Holdings, Inc. (NYSE:CF - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 17,413 shares of the basic materials company's stock, valued at approximately $1,361,000.

A number of other hedge funds have also recently modified their holdings of CF. Curat Global LLC acquired a new position in CF Industries in the first quarter valued at approximately $25,000. Zions Bancorporation National Association UT purchased a new position in shares of CF Industries during the 1st quarter valued at approximately $27,000. Golden State Wealth Management LLC lifted its stake in shares of CF Industries by 119.8% in the 1st quarter. Golden State Wealth Management LLC now owns 378 shares of the basic materials company's stock valued at $30,000 after purchasing an additional 206 shares during the period. TCTC Holdings LLC boosted its holdings in CF Industries by 114.1% during the first quarter. TCTC Holdings LLC now owns 379 shares of the basic materials company's stock worth $30,000 after buying an additional 202 shares in the last quarter. Finally, Heck Capital Advisors LLC acquired a new stake in CF Industries during the fourth quarter valued at $34,000. Hedge funds and other institutional investors own 93.06% of the company's stock.

CF Industries Price Performance

Shares of CF stock traded up $1.3670 during trading hours on Wednesday, reaching $85.3670. The company had a trading volume of 2,126,398 shares, compared to its average volume of 2,772,275. CF Industries Holdings, Inc. has a 12-month low of $67.34 and a 12-month high of $104.45. 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 company has a market capitalization of $13.83 billion, a price-to-earnings ratio of 11.14 and a beta of 0.94. The stock has a fifty day moving average of $92.77 and a 200-day moving average of $85.08.

CF Industries (NYSE:CF - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The basic materials company reported $2.37 earnings per share for the quarter, topping analysts' consensus estimates of $2.35 by $0.02. The company had revenue of $1.89 billion for the quarter, compared to analyst estimates of $1.73 billion. CF Industries had a return on equity of 17.10% and a net margin of 20.19%.The firm's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.30 earnings per share. On average, equities analysts anticipate that CF Industries Holdings, Inc. will post 5.83 earnings per share for the current year.

CF Industries Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, August 15th. CF Industries's payout ratio is presently 26.11%.

CF Industries announced that its Board of Directors has initiated a share repurchase program on Wednesday, May 7th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the basic materials company to purchase up to 14.7% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

CF has been the subject of a number of analyst reports. Scotiabank reiterated a "sector perform" rating and issued a $82.00 price objective (up previously from $81.00) on shares of CF Industries in a research report on Monday, August 11th. Morgan Stanley set a $95.00 target price on CF Industries and gave the stock an "equal weight" rating in a research note on Thursday, June 26th. Wolfe Research cut shares of CF Industries from an "outperform" rating to a "peer perform" rating in a research note on Thursday, June 12th. Wall Street Zen cut shares of CF Industries from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, UBS Group dropped their target price on shares of CF Industries from $103.00 to $101.00 and set a "neutral" rating on the stock in a research report on Thursday, August 7th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $95.00.

Insiders Place Their Bets

In other CF Industries news, EVP Susan L. Menzel sold 10,000 shares of the firm's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $100.23, for a total transaction of $1,002,300.00. Following the completion of the sale, the executive vice president owned 87,923 shares of the company's stock, valued at $8,812,522.29. This trade represents a 10.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.71% of the company's stock.

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.