China Yuchai International (NYSE:CYD) Stock Price Down 7.4% - Should You Sell?

Key Points

• China Yuchai shares fell 7.4% in mid-day trading to about $29.82, bringing the stock well below its 50-day moving average of $39.17 and 200-day average of $43.96.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a $60 price target, although several firms recently downgraded the stock to “Hold.”
• Company insiders reduced their positions: a director and the CFO each sold 50% of their reported holdings in August, while several hedge funds initiated or increased positions during the second quarter.

Shares of China Yuchai International Limited (NYSE:CYD - Get Free Report) were down 7.4% during mid-day trading on Wednesday. The stock traded as low as $30.18 and last traded at $29.8170. 172,670 shares traded hands during mid-day trading, a decline of 1% from the average session volume of 174,398 shares. The stock had previously closed at $32.19.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Citigroup upgraded shares of China Yuchai International to a "buy" rating in a research note on Monday, July 27th. Greenridge Global upgraded China Yuchai International from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 27th. Weiss Ratings downgraded China Yuchai International from a "buy (b-)" rating to a "hold (c)" rating in a report on Tuesday, September 8th. Zacks Research cut China Yuchai International from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 25th. Finally, Wall Street Zen downgraded China Yuchai International from a "buy" rating to a "hold" rating in a research note on Saturday, September 26th. Two research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Buy" and an average price target of $60.00.

China Yuchai International Stock Down 11.2%

The company's fifty day moving average is $39.17 and its 200-day moving average is $43.96.

Insiders Place Their Bets

In related news, Director Neo Kiat sold 8,000 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $45.69, for a total value of $365,520.00. Following the completion of the transaction, the director owned 8,000 shares of the company's stock, valued at approximately $365,520. This represents a 50.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Loo Sen sold 13,200 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $46.95, for a total value of $619,740.00. Following the completion of the sale, the chief financial officer owned 13,200 shares of the company's stock, valued at $619,740. The trade was a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing.

Hedge Funds Weigh In On China Yuchai International

Hedge funds have recently made changes to their positions in the business. Engineers Gate Manager LP grew its position in shares of China Yuchai International by 25.7% during the second quarter. Engineers Gate Manager LP now owns 32,487 shares of the company's stock worth $1,540,000 after purchasing an additional 6,647 shares in the last quarter. Ameritas Advisory Services LLC purchased a new position in China Yuchai International in the 2nd quarter worth approximately $280,000. BTG Pactual Asset Management US LLC purchased a new position in China Yuchai International in the 2nd quarter worth approximately $211,000. Susquehanna Fundamental Investments LLC bought a new position in China Yuchai International in the 2nd quarter worth approximately $455,000. Finally, World Equity Group Inc. bought a new position in China Yuchai International in the 2nd quarter worth approximately $315,000.

About China Yuchai International

China Yuchai International Limited NYSE: CYD is a holding company whose principal operating subsidiary is Guangxi Yuchai Machinery Company Limited. Based in China, Yuchai develops, manufactures and sells a broad range of diesel and natural-gas engines for commercial vehicles, passenger vehicles, construction equipment, agricultural machinery, marine applications and power-generation systems.

The company also produces engine components and provides related services, including engine remanufacturing, maintenance and technical support.

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