CNH Industrial (NYSE:CNH) Stock Falls 5.4% - Should You Sell?

Key Points

• CNH Industrial shares fell 5.4% to $11.47 on Friday, with trading volume below its average. The stock’s average analyst rating is “Hold,” with a consensus price target of $13.30.
• The company’s latest quarterly results exceeded expectations, reporting $0.13 in adjusted EPS versus estimates of $0.11 and revenue of $4.80 billion, up 2% year over year.
• Institutional ownership remains high at 59.88%, while several investment firms recently increased or initiated positions in CNH Industrial.

CNH Industrial N.V. (NYSE:CNH - Get Free Report)'s stock price traded down 5.4% during trading on Friday. The stock traded as low as $11.47 and last traded at $11.47. Approximately 11,976,539 shares changed hands during trading, a decline of 22% from the average daily volume of 15,435,762 shares. The stock had previously closed at $12.13.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CNH. DA Davidson restated a "neutral" rating and issued a $12.00 price objective on shares of CNH Industrial in a research note on Wednesday, August 19th. Weiss Ratings raised shares of CNH Industrial from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, October 2nd. JPMorgan Chase & Co. upped their price objective on shares of CNH Industrial from $10.00 to $11.00 and gave the company an "underweight" rating in a report on Thursday. BMO Capital Markets boosted their target price on shares of CNH Industrial from $11.00 to $12.00 and gave the company a "market perform" rating in a research report on Tuesday, August 4th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating on shares of CNH Industrial in a research report on Tuesday, August 4th. Eight analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $13.30.

CNH Industrial Stock Performance

The firm's 50 day moving average is $12.34 and its 200-day moving average is $11.25. The stock has a market capitalization of $14.20 billion, a price-to-earnings ratio of 45.68 and a beta of 1.20. The company has a debt-to-equity ratio of 3.33, a quick ratio of 10.16 and a current ratio of 12.23.

CNH Industrial (NYSE:CNH - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The company reported $0.13 earnings per share for the quarter, beating analysts' consensus estimates of $0.11 by $0.02. CNH Industrial had a net margin of 1.71% and a return on equity of 6.78%. The company had revenue of $4.80 billion during the quarter, compared to analysts' expectations of $4.77 billion. During the same quarter in the previous year, the company earned $0.17 earnings per share. The firm's revenue for the quarter was up 2.0% on a year-over-year basis. CNH Industrial has set its FY 2026 guidance at 0.410-0.460 EPS. Analysts forecast that CNH Industrial N.V. will post 0.45 earnings per share for the current fiscal year.

Institutional Trading of CNH Industrial

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Sei Investments Co. increased its stake in CNH Industrial by 61.3% during the 1st quarter. Sei Investments Co. now owns 4,666,201 shares of the company's stock worth $51,330,000 after buying an additional 1,774,178 shares in the last quarter. Quantitative Investment Management LLC acquired a new stake in shares of CNH Industrial in the second quarter worth approximately $1,020,000. Arrowstreet Capital Limited Partnership acquired a new stake in shares of CNH Industrial in the first quarter worth approximately $6,332,000. Lazard Asset Management LLC increased its position in shares of CNH Industrial by 187.8% during the first quarter. Lazard Asset Management LLC now owns 341,881 shares of the company's stock worth $3,761,000 after purchasing an additional 223,073 shares in the last quarter. Finally, SEB Asset Management AB purchased a new position in CNH Industrial in the 1st quarter valued at $1,879,000. 59.88% of the stock is currently owned by hedge funds and other institutional investors.

About CNH Industrial

CNH Industrial N.V. is a global manufacturer of agriculture and construction equipment. The company develops, produces and sells machinery, technologies and services used in farming, road building, infrastructure development and related industries.

Its agriculture business offers tractors, combines, harvesting equipment, planting and seeding machinery, hay and forage equipment, sprayers and precision-agriculture technologies. Its construction portfolio includes excavators, loaders, dozers, compactors, graders and other equipment.

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