First Trust Advisors LP Decreases Stake in CF Industries Holdings, Inc. $CF

Key Points

• First Trust Advisors LP cut its position in CF Industries by 35.1% in Q3, selling about 1,004,785 shares and now holds 1,856,243 shares (≈1.19% of the company) worth roughly $166.5 million.
• CF faces near‑term regulatory and legal risk from a DOJ antitrust probe of the U.S. fertilizer market and a shareholder‑rights inquiry, and several insiders have recently sold stock.
• The company recently beat quarterly EPS and pays a $0.50 quarterly dividend, but analysts' consensus is a Hold with an average target of $96.87—below the recent share price (~$115.70), raising valuation questions.

First Trust Advisors LP cut its position in CF Industries Holdings, Inc. (NYSE:CF - Free Report) by 35.1% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,856,243 shares of the basic materials company's stock after selling 1,004,785 shares during the period. First Trust Advisors LP owned 1.19% of CF Industries worth $166,505,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Neo Ivy Capital Management acquired a new stake in shares of CF Industries in the 3rd quarter valued at $443,000. Consolidated Portfolio Review Corp acquired a new position in shares of CF Industries during the third quarter worth $284,000. Integrated Quantitative Investments LLC purchased a new position in CF Industries in the third quarter valued at $222,000. NewSquare Capital LLC increased its holdings in CF Industries by 0.6% in the third quarter. NewSquare Capital LLC now owns 101,223 shares of the basic materials company's stock valued at $9,080,000 after buying an additional 618 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in CF Industries by 22.2% in the third quarter. Dimensional Fund Advisors LP now owns 3,133,709 shares of the basic materials company's stock valued at $281,104,000 after buying an additional 568,710 shares in the last quarter. 93.06% of the stock is currently owned by institutional investors and hedge funds.

CF Industries News Summary

Here are the key news stories impacting CF Industries this week:

• Positive Sentiment: Analyst upgrades and constructive research—Barclays raised its price target and moved to overweight, and other firms have boosted near‑term outlooks, supporting buying interest. Read More.
• Positive Sentiment: EPS forecasts ticked higher—Zacks and some analysts raised Q1/Q2 EPS estimates, reinforcing the view that recent earnings momentum can persist. Read More.
• Positive Sentiment: Unusual call‑option activity—Large spike in call buying (roughly 7,500 calls, ~148% above normal) indicates short‑term bullish positioning that can amplify upward moves.
• Positive Sentiment: Fundamentals & shareholder returns—Recent quarter beat consensus on EPS and revenue and the company pays a modest dividend, giving investors income + earnings support.
• Neutral Sentiment: Valuation re‑rating debate—Coverage pieces are assessing whether the rally has stretched valuation vs. fundamentals; this could slow momentum if future results fall short. Read More.
• Negative Sentiment: DOJ antitrust probe—Federal investigators are probing the U.S. fertilizer market for possible price‑fixing and have named major fertilizer makers, including CF, which is the largest near‑term regulatory risk. Read More.
• Negative Sentiment: Shareholder litigation inquiry—A shareholder‑rights firm is investigating potential breaches of fiduciary duty by CF directors, adding legal and reputational risk. Read More.
• Negative Sentiment: Recent insider sales—Senior executives (SVP Michael McGrane and EVP Susan Menzel) sold shares in early March; while holdings remain large, these disclosures can be perceived negatively by some investors. SEC filings: Read More. and Read More.

Insiders Place Their Bets

In related news, EVP Susan L. Menzel sold 3,914 shares of the company's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $106.09, for a total value of $415,236.26. Following the completion of the sale, the executive vice president owned 81,003 shares in the company, valued at $8,593,608.27. This represents a 4.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Michael Patrick Mcgrane sold 2,766 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $105.36, for a total transaction of $291,425.76. Following the sale, the senior vice president owned 22,827 shares of the company's stock, valued at approximately $2,405,052.72. This represents a 10.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 9,895 shares of company stock worth $1,018,517 over the last ninety days. Corporate insiders own 0.42% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CF. Rothschild & Co Redburn set a $72.00 price target on CF Industries in a report on Wednesday, February 4th. BMO Capital Markets increased their price objective on CF Industries from $110.00 to $115.00 and gave the company an "outperform" rating in a report on Friday, February 20th. HSBC cut their target price on CF Industries from $95.00 to $91.00 and set a "hold" rating on the stock in a research report on Monday, November 24th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $103.00 price target on shares of CF Industries in a report on Friday, February 20th. Finally, Bank of America lowered their price target on CF Industries from $83.00 to $78.00 and set an "underperform" rating for the company in a report on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, CF Industries presently has an average rating of "Hold" and an average target price of $96.87.

CF Industries Stock Performance

NYSE CF opened at $115.70 on Friday. The company has a fifty day moving average of $91.41 and a two-hundred day moving average of $86.37. The company has a market capitalization of $17.78 billion, a PE ratio of 12.86 and a beta of 0.68. CF Industries Holdings, Inc. has a 1 year low of $67.34 and a 1 year high of $120.49. 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 posted its earnings results on Wednesday, February 18th. The basic materials company reported $2.59 earnings per share for the quarter, beating the consensus estimate of $2.53 by $0.06. The business had revenue of $1.87 billion during the quarter, compared to the consensus estimate of $1.78 billion. CF Industries had a return on equity of 19.84% and a net margin of 20.54%.The business's quarterly revenue was up 22.8% on a year-over-year basis. During the same period in the previous year, the business earned $1.89 EPS. As a group, analysts expect that CF Industries Holdings, Inc. will post 5.83 earnings per share for the current year.

CF Industries Announces Dividend

The firm 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. The ex-dividend date 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 (DPR) is 22.22%.

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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