American Axle & Manufacturing (NYSE:DCH) Shares Gap Down After Analyst Downgrade

Key Points

• American Axle & Manufacturing shares fell 4.8% after Jefferies downgraded the stock from Buy to Hold, cutting its price target from $8.25 to $7.10. Shares opened at $5.62 versus a previous close of $5.91.
• Analyst sentiment is mixed but leans toward Hold: four analysts rate the stock Buy, five Hold and one Sell, with a consensus price target of $9.76.
• The company recently exceeded quarterly earnings expectations, reporting $0.32 in EPS versus a $0.14 consensus estimate on revenue of $2.96 billion, though it continues to carry high leverage with a debt-to-equity ratio of 3.32.

American Axle & Manufacturing Holdings, Inc. (NYSE:DCH - Get Free Report)'s stock price gapped down before the market opened on Wednesday after Jefferies Financial Group downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $5.91, but opened at $5.62. Jefferies Financial Group now has a $7.10 price target on the stock, down from their previous price target of $8.25. American Axle & Manufacturing shares last traded at $5.5450, with a volume of 627,345 shares.

DCH has been the topic of a number of other reports. Weiss Ratings reaffirmed a "sell (d)" rating on shares of American Axle & Manufacturing in a research report on Friday, September 4th. Barclays raised their price objective on American Axle & Manufacturing from $8.00 to $9.00 and gave the stock an "equal weight" rating in a report on Monday, August 17th. UBS Group reduced their target price on American Axle & Manufacturing from $9.50 to $9.00 and set a "buy" rating for the company in a report on Thursday, July 9th. Stifel Nicolaus raised their price target on American Axle & Manufacturing from $6.00 to $7.00 and gave the stock a "hold" rating in a research note on Monday, August 10th. Finally, BWS Financial reiterated a "buy" rating and issued a $17.00 price objective on shares of American Axle & Manufacturing in a research note on Monday, August 10th. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $9.76.

American Axle & Manufacturing Trading Down 4.8%

The stock has a 50 day moving average of $6.19. The company has a debt-to-equity ratio of 3.32, a current ratio of 1.40 and a quick ratio of 1.02. The stock has a market capitalization of $1.34 billion, a PE ratio of -5.16, a PEG ratio of 0.20 and a beta of 1.63.

American Axle & Manufacturing (NYSE:DCH - Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.14 by $0.18. The company had revenue of $2.96 billion during the quarter. American Axle & Manufacturing had a positive return on equity of 15.94% and a negative net margin of 2.01%. As a group, analysts predict that American Axle & Manufacturing Holdings, Inc. will post 0.96 EPS for the current year.

American Axle & Manufacturing Company Profile

American Axle & Manufacturing Holdings, Inc is a global automotive supplier that designs, engineers and manufactures driveline and metal-forming systems for light trucks, SUVs, passenger cars and commercial vehicles. Its products include axles, driveshafts, differentials, transfer cases and other drivetrain components that transmit power from a vehicle's engine or electric motor to its wheels.

The company also produces components and systems through its metal-forming, casting, machining and engineering operations.

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