American Axle & Manufacturing (NYSE:DCH) Trading 7.9% Higher - Still a Buy?

Key Points

• American Axle & Manufacturing shares surged 7.9% to about $6.56, although trading volume was roughly 80% below the average session volume.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a consensus price target of $9.71, with three Buy, five Hold, and one Sell rating.
• The company beat quarterly earnings expectations, reporting $0.32 in EPS versus the $0.14 consensus and $2.96 billion in revenue, but continues to have a negative net margin and high debt-to-equity ratio of 3.32.

Shares of American Axle & Manufacturing Holdings, Inc. (NYSE:DCH - Get Free Report) shot up 7.9% on Wednesday . The stock traded as high as $6.60 and last traded at $6.5590. Approximately 992,804 shares were traded during trading, a decline of 80% from the average session volume of 4,946,989 shares. The stock had previously closed at $6.08.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on DCH. UBS Group reduced their price target on American Axle & Manufacturing from $9.50 to $9.00 and set a "buy" rating on the stock in a research report on Thursday, July 9th. BWS Financial reissued a "buy" rating and issued a $17.00 price objective on shares of American Axle & Manufacturing in a research note on Monday, August 10th. Stifel Nicolaus boosted their price target on American Axle & Manufacturing from $6.00 to $7.00 and gave the stock a "hold" rating in a report on Monday, August 10th. Wall Street Zen lowered American Axle & Manufacturing from a "buy" rating to a "hold" rating in a research report on Sunday, May 17th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of American Axle & Manufacturing in a research report on Monday, June 8th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, American Axle & Manufacturing currently has an average rating of "Hold" and an average price target of $9.71.

American Axle & Manufacturing Price Performance

The company's fifty day moving average price is $5.85. The firm has a market cap of $1.56 billion, a PE ratio of -6.07, a price-to-earnings-growth ratio of 0.21 and a beta of 1.63. The company has a debt-to-equity ratio of 3.32, a current ratio of 1.40 and a quick ratio of 1.02.

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

About American Axle & Manufacturing

American Axle & Manufacturing is a U.S.-based designer, engineer and manufacturer of driveline and drivetrain systems and components for the automotive and light- and heavy-vehicle markets. The company produces a range of mechanical and electromechanical products including axles, driveshafts, differential systems, halfshafts, transmission components, and related sealing and suspension parts. Its product portfolio serves passenger cars, light trucks, commercial vehicles and off-highway applications.

Beyond component manufacturing, the company provides integrated engineering services such as product development, testing and system integration to help vehicle manufacturers meet performance, weight and fuel-economy targets.

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