Freightcar America (NASDAQ:RAIL) Upgraded to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded FreightCar America from “strong sell” to “hold,” while Weiss Ratings separately downgraded the stock to “sell.” The overall analyst consensus remains “Reduce.”
• RAIL shares opened at $7.41, near their 52-week low of $7.27 and below both the 50-day ($8.39) and 200-day ($9.35) moving averages.
• FreightCar America reported a quarterly loss of $0.02 per share, though revenue of $113.14 million exceeded analyst expectations of $110.41 million. The company continues to face negative profitability metrics, including a 15.23% negative return on equity.

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

Separately, Weiss Ratings lowered Freightcar America from a "hold (c)" rating to a "sell (d)" rating in a research note on Tuesday, August 4th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Freightcar America has a consensus rating of "Reduce".

Freightcar America Price Performance

Shares of NASDAQ RAIL opened at $7.41 on Wednesday. The company has a quick ratio of 1.12, a current ratio of 1.81 and a debt-to-equity ratio of 2.70. The business's 50 day moving average is $8.39 and its two-hundred day moving average is $9.35. Freightcar America has a 52-week low of $7.27 and a 52-week high of $14.90. The firm has a market cap of $242.97 million, a price-to-earnings ratio of -13.72 and a beta of 1.48.

Freightcar America (NASDAQ:RAIL - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The transportation company reported ($0.02) EPS for the quarter. Freightcar America had a negative return on equity of 15.23% and a negative net margin of 2.69%.The firm had revenue of $113.14 million for the quarter, compared to analysts' expectations of $110.41 million. Research analysts predict that Freightcar America will post 0.35 EPS for the current year.

Hedge Funds Weigh In On Freightcar America

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BNP Paribas Financial Markets grew its stake in shares of Freightcar America by 208.6% in the third quarter. BNP Paribas Financial Markets now owns 2,935 shares of the transportation company's stock worth $29,000 after acquiring an additional 1,984 shares in the last quarter. Royal Bank of Canada raised its stake in shares of 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 valued at $45,000 after acquiring an additional 3,924 shares in the last quarter. Quarry LP purchased a new position in Freightcar America in the third quarter valued at $53,000. Dynamic Technology Lab Private Ltd acquired a new position in Freightcar America during the 1st quarter worth $61,000. Finally, State of Wyoming acquired a new position in Freightcar America during the 2nd quarter worth $63,000. Hedge funds and other institutional investors 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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