CF Industries (NYSE:CF) Trading Up 4.3% - Here's Why

Key Points

• CF Industries shares rose 4.3% to $131.23, although trading volume was 92% below the average session volume.
• Analyst sentiment remains mixed, with the stock carrying a consensus “Hold” rating and an average price target of $116.56, below its current price.
• The company increased its quarterly dividend from $0.50 to $0.60 per share, while its latest quarterly earnings and revenue fell short of analyst expectations despite 17.6% year-over-year revenue growth.

CF Industries Holdings, Inc. (NYSE:CF - Get Free Report) shares rose 4.3% during trading on Monday . The company traded as high as $132.00 and last traded at $131.23. 282,553 shares traded hands during trading, a decline of 92% from the average session volume of 3,352,337 shares. The stock had previously closed at $125.79.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Zacks Research downgraded shares of CF Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, June 15th. Weiss Ratings lowered shares of CF Industries from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, August 21st. UBS Group upped their target price on shares of CF Industries from $115.00 to $123.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Berenberg Bank lifted their price target on CF Industries from $86.00 to $106.00 and gave the company a "hold" rating in a report on Thursday, May 28th. Finally, BMO Capital Markets decreased their price objective on CF Industries from $140.00 to $135.00 and set an "outperform" rating for the company in a report on Tuesday, June 30th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $116.56.

CF Industries Trading Up 1.5%

The firm has a market capitalization of $19.32 billion, a price-to-earnings ratio of 9.46, a price-to-earnings-growth ratio of 0.25 and a beta of 0.39. The company has a quick ratio of 4.32, a current ratio of 4.86 and a debt-to-equity ratio of 0.36. The firm's 50 day moving average is $118.18 and its 200 day moving average is $117.03.

CF Industries (NYSE:CF - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The basic materials company reported $4.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.63 by ($0.90). The company had revenue of $2.22 billion during the quarter, compared to the consensus estimate of $2.45 billion. CF Industries had a net margin of 27.12% and a return on equity of 24.41%. CF Industries's quarterly revenue was up 17.6% on a year-over-year basis. During the same period in the prior year, the company posted $2.37 EPS. Equities analysts forecast that CF Industries Holdings, Inc. will post 13.7 earnings per share for the current year.

CF Industries Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Friday, August 14th will be issued a dividend of $0.60 per share. This is a positive change from CF Industries's previous quarterly dividend of $0.50. This represents a $2.40 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, August 14th. CF Industries's dividend payout ratio (DPR) is currently 17.79%.

Hedge Funds Weigh In On CF Industries

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CF. Amundi increased its stake in CF Industries by 50.4% in the 2nd quarter. Amundi now owns 1,356,819 shares of the basic materials company's stock valued at $146,888,000 after buying an additional 454,529 shares during the period. HighTower Advisors LLC increased its stake in shares of CF Industries by 253.0% in the second quarter. HighTower Advisors LLC now owns 68,103 shares of the basic materials company's stock worth $7,373,000 after acquiring an additional 48,811 shares during the last quarter. Groupe la Francaise increased its stake in shares of CF Industries by 17.2% in the second quarter. Groupe la Francaise now owns 56,553 shares of the basic materials company's stock worth $6,122,000 after acquiring an additional 8,299 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of CF Industries during the second quarter worth $44,614,000. Finally, California State Teachers Retirement System raised its holdings in shares of CF Industries by 10,624.0% during the second quarter. California State Teachers Retirement System now owns 19,345,196 shares of the basic materials company's stock worth $2,094,311,000 after acquiring an additional 19,164,804 shares in the last quarter. Institutional investors and hedge funds own 93.06% of the company's stock.

CF Industries Company Profile

CF Industries Holdings, Inc is a leading global manufacturer of hydrogen and nitrogen products for agricultural and industrial customers. The company specializes in the production of ammonia, granular urea, urea ammonium nitrate (UAN), nitric acid and ammonium nitrate, which serve as key inputs for fertilizer blends, industrial chemicals and other downstream applications.

Headquartered in Deerfield, Illinois, CF Industries operates production facilities and distribution terminals across North America and the United Kingdom.

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