American Axle & Manufacturing (NYSE:DCH) Trading Down 6.2% on Analyst Downgrade

Key Points

• American Axle & Manufacturing shares fell 6.2% after Jefferies downgraded the stock from Buy to Hold and cut its price target from $8.25 to $7.10.
• Analyst opinion remains mixed, with four Buy ratings, five Holds and one Sell; the consensus rating is Hold with an average price target of $9.76.
• The company recently reported quarterly EPS of $0.32, exceeding the $0.14 consensus estimate, on revenue of $2.96 billion, though it continues to operate with a negative net margin and high debt-to-equity ratio of 3.32.

American Axle & Manufacturing Holdings, Inc. (NYSE:DCH - Get Free Report) dropped 6.2% during mid-day trading on Thursday after Jefferies Financial Group downgraded the stock from a buy rating to a hold rating. 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 traded as low as $5.35 and last traded at $5.3250. Approximately 1,629,784 shares were traded during trading, a decline of 66% from the average session volume of 4,781,048 shares. The stock had previously closed at $5.68.

A number of other brokerages also recently weighed in on DCH. Barclays raised their price objective on American Axle & Manufacturing from $8.00 to $9.00 and gave the company an "equal weight" rating in a research report on Monday, August 17th. JPMorgan Chase & Co. assumed coverage on shares of American Axle & Manufacturing in a report on Tuesday, July 7th. They issued a "neutral" rating and a $8.00 price target on the stock. TD Cowen raised shares of American Axle & Manufacturing from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $8.00 to $10.00 in a research report on Tuesday, September 8th. UBS Group reduced their price objective on shares of American Axle & Manufacturing from $9.50 to $9.00 and set a "buy" rating for the company in a research note on Thursday, July 9th. Finally, Stifel Nicolaus upped their price target on American Axle & Manufacturing from $6.00 to $7.00 and gave the stock a "hold" rating in a research report on Monday, August 10th. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $9.76.

American Axle & Manufacturing Stock Performance

The stock's 50 day moving average is $6.20. The company has a market cap of $1.26 billion, a price-to-earnings ratio of -4.94, a price-to-earnings-growth ratio of 0.20 and a beta of 1.63. The company has a current ratio of 1.40, a quick ratio of 1.02 and a debt-to-equity ratio of 3.32.

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