Short Interest in Freightcar America, Inc. (NASDAQ:RAIL) Grows By 235.8%

Key Points

• Short interest in FreightCar America (NASDAQ:RAIL) jumped 235.8% in June to 753,303 shares, or about 5.6% of the float. The days-to-cover ratio is 1.7 days, showing a notable increase in bearish bets on the stock.
• The company recently secured a multi-year order for 1,900 railcars from a key customer, with deliveries extending through 2028. It also said second-quarter orders totaled about 3,000 railcars, which supports revenue visibility and backlog growth.
• Despite positive order news, FreightCar America reported a miss on its latest quarterly results, posting a loss of $0.04 per share versus expectations for a profit and revenue below estimates. Analysts currently have a consensus rating of Buy, though sentiment remains mixed.

Freightcar America, Inc. (NASDAQ:RAIL - Get Free Report) was the recipient of a large growth in short interest in June. As of June 30th, there was short interest totaling 753,303 shares, a growth of 235.8% from the June 15th total of 224,312 shares. Based on an average daily trading volume, of 446,340 shares, the days-to-cover ratio is currently 1.7 days. Approximately 5.6% of the company's stock are short sold.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a "hold (c)" rating on shares of Freightcar America in a report on Friday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, Freightcar America currently has a consensus rating of "Buy".

Trending Headlines about Freightcar America

Here are the key news stories impacting Freightcar America this week:

• Positive Sentiment: FreightCar America said it secured a multi-year order for 1,900 railcars from a key customer, with deliveries running through 2028, and noted that second-quarter orders totaled about 3,000 railcars. That suggests stronger revenue visibility and a fuller production backlog, which can support the stock. Article Title
• Positive Sentiment: Noble Financial reiterated a constructive outlook by forecasting FY2027 EPS of $0.70, implying expectations for continued earnings growth beyond the current fiscal year. MarketBeat estimate update
• Neutral Sentiment: Analysts also published quarterly EPS estimates around $0.15 to $0.18 for 2027, which points to ongoing modeling activity but does not materially change the near-term story by itself. MarketBeat estimate update
• Negative Sentiment: Short interest surged to 753,303 shares at the end of June, or 5.6% of the float, indicating that bearish bets on FreightCar America (RAIL) rose sharply and could weigh on sentiment. Short interest data

Freightcar America Stock Performance

NASDAQ RAIL opened at $7.99 on Monday. The firm has a market capitalization of $152.93 million, a P/E ratio of 10.80 and a beta of 1.44. The firm's fifty day moving average price is $8.33 and its two-hundred day moving average price is $9.90. Freightcar America has a 1 year low of $7.27 and a 1 year high of $14.90.

Freightcar America (NASDAQ:RAIL - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The transportation company reported ($0.04) EPS for the quarter, missing analysts' consensus estimates of $0.02 by ($0.06). The firm had revenue of $64.31 million during the quarter, compared to the consensus estimate of $74.60 million. Freightcar America had a net margin of 6.25% and a negative return on equity of 15.56%. On average, research analysts anticipate that Freightcar America will post 0.4 EPS for the current fiscal year.

Hedge Funds Weigh In On Freightcar America

Institutional investors have recently bought and sold shares of the business. Sei Investments Co. raised its stake in Freightcar America by 119.9% in the first quarter. Sei Investments Co. now owns 121,153 shares of the transportation company's stock valued at $966,000 after buying an additional 66,056 shares during the period. Globeflex Capital L P boosted its stake in shares of Freightcar America by 840.3% during the 1st quarter. Globeflex Capital L P now owns 72,484 shares of the transportation company's stock worth $578,000 after acquiring an additional 64,775 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Freightcar America by 16.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 139,826 shares of the transportation company's stock worth $1,114,000 after acquiring an additional 19,898 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of Freightcar America by 14.0% during the 1st quarter. Bank of New York Mellon Corp now owns 82,402 shares of the transportation company's stock worth $657,000 after acquiring an additional 10,132 shares during the last quarter. Finally, North Star Investment Management Corp. increased its holdings in shares of Freightcar America by 36.8% during the 1st quarter. North Star Investment Management Corp. now owns 237,800 shares of the transportation company's stock worth $1,895,000 after acquiring an additional 64,000 shares during the last quarter. Institutional investors and hedge funds own 31.96% of the company's stock.

Freightcar America Company Profile

FreightCar America, Inc is a designer and manufacturer of specialized railroad freight cars, offering a diverse range of products that include tank cars, open and covered hoppers, gondolas, boxcars and centerbeam lumber cars. The company supports both new car construction and the rebuilding of existing fleets, providing custom engineering solutions to meet customer specifications and industry regulations. FreightCar America also supplies aftermarket parts, maintenance services and component remanufacturing for its own fleet and for third-party car owners.

Headquartered in Chicago, Illinois, FreightCar America traces its origins to early 20th-century railcar builders and began trading as an independent, publicly-listed company on the NASDAQ under the ticker RAIL following a spin-off in 2010.

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