Freightcar America (NASDAQ:RAIL) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded FreightCar America from hold to strong sell, adding to a generally cautious analyst outlook. MarketBeat data shows the stock’s average rating is now Reduce.
• The company recently reported weaker-than-expected quarterly results, posting an EPS loss of ($0.04) versus the expected $0.02 gain and revenue of $64.31 million versus the $74.60 million estimate.
• FreightCar America shares were trading at $7.96, near their 52-week low of $7.27 and below the 200-day moving average of $9.83, reflecting continued pressure on the stock.

Freightcar America (NASDAQ:RAIL - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Separately, Weiss Ratings reiterated a "hold (c)" rating on shares of Freightcar America in a research report on Friday, June 5th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Freightcar America has an average rating of "Reduce".

Freightcar America Stock Performance

Shares of RAIL opened at $7.96 on Tuesday. The firm has a market capitalization of $152.35 million, a price-to-earnings ratio of 10.76 and a beta of 1.44. Freightcar America has a one year low of $7.27 and a one year high of $14.90. The stock's fifty day moving average is $8.33 and its 200-day moving average is $9.83.

Freightcar America (NASDAQ:RAIL - Get Free Report) last issued its quarterly earnings data on Monday, May 4th. The transportation company reported ($0.04) earnings per share for the quarter, missing analysts' consensus estimates of $0.02 by ($0.06). Freightcar America had a net margin of 6.25% and a negative return on equity of 15.56%. The company had revenue of $64.31 million for the quarter, compared to the consensus estimate of $74.60 million. Analysts forecast that Freightcar America will post 0.4 EPS for the current fiscal year.

Hedge Funds Weigh In On Freightcar America

Several hedge funds have recently made changes to their positions in RAIL. BNP Paribas Financial Markets lifted its stake in Freightcar America by 208.6% during the third quarter. BNP Paribas Financial Markets now owns 2,935 shares of the transportation company's stock valued at $29,000 after purchasing an additional 1,984 shares during the last quarter. Royal Bank of Canada grew its position in Freightcar America by 2,843.5% in the fourth quarter. Royal Bank of Canada now owns 4,062 shares of the transportation company's stock worth $45,000 after buying an additional 3,924 shares during the last quarter. Raymond James Financial Inc. increased its holdings in shares of Freightcar America by 24.7% in the second quarter. Raymond James Financial Inc. now owns 20,545 shares of the transportation company's stock valued at $177,000 after buying an additional 4,067 shares in the last quarter. Man Group plc increased its holdings in shares of Freightcar America by 15.8% in the fourth quarter. Man Group plc now owns 30,743 shares of the transportation company's stock valued at $340,000 after buying an additional 4,191 shares in the last quarter. Finally, Quarry LP acquired a new stake in shares of Freightcar America during the 3rd quarter valued at $53,000. Institutional investors and hedge funds own 31.96% of the company's stock.

About Freightcar America

FreightCar America, Inc is a designer and manufacturer of specialized railroad freight cars, offering a diverse range of products that include tank cars, open and covered hoppers, gondolas, boxcars and centerbeam lumber cars. The company supports both new car construction and the rebuilding of existing fleets, providing custom engineering solutions to meet customer specifications and industry regulations. FreightCar America also supplies aftermarket parts, maintenance services and component remanufacturing for its own fleet and for third-party car owners.

Headquartered in Chicago, Illinois, FreightCar America traces its origins to early 20th-century railcar builders and began trading as an independent, publicly-listed company on the NASDAQ under the ticker RAIL following a spin-off in 2010.

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