CF Industries (NYSE:CF) Trading Down 6.1% on Disappointing Earnings

CF Industries Holdings, Inc. (NYSE:CF)’s stock price fell 6.1% during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $73.13 and last traded at $73.25. 2,040,405 shares were traded during mid-day trading, a decline of 16% from the average session volume of 2,421,529 shares. The stock had previously closed at $77.97.

The basic materials company reported $1.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.47 by ($0.44). CF Industries had a return on equity of 18.44% and a net margin of 23.00%. The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the prior year, the company earned $2.85 EPS. The company’s revenue for the quarter was down 26.9% on a year-over-year basis.

CF Industries Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Wednesday, May 15th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 2.72%. The ex-dividend date of this dividend is Tuesday, May 14th. CF Industries’s dividend payout ratio (DPR) is presently 25.51%.

Analysts Set New Price Targets

A number of research firms recently weighed in on CF. Berenberg Bank increased their price target on CF Industries from $68.00 to $69.00 and gave the company a “hold” rating in a research note on Wednesday, April 17th. Piper Sandler cut CF Industries from a “neutral” rating to an “underweight” rating and dropped their price target for the company from $87.00 to $82.00 in a research note on Thursday, February 29th. Wells Fargo & Company lowered their price objective on CF Industries from $98.00 to $97.00 and set an “overweight” rating on the stock in a research report on Friday, February 16th. Bank of America reiterated a “neutral” rating and set a $88.00 price objective (down previously from $96.00) on shares of CF Industries in a research report on Wednesday, April 10th. Finally, UBS Group cut CF Industries from a “buy” rating to a “neutral” rating and lowered their price objective for the stock from $95.00 to $83.00 in a research report on Wednesday, January 31st. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating to the company’s stock. According to data from MarketBeat.com, CF Industries presently has an average rating of “Hold” and an average price target of $86.47.

Insiders Place Their Bets

In related news, EVP Bert A. Frost sold 6,000 shares of the business’s stock in a transaction on Tuesday, March 12th. The stock was sold at an average price of $85.00, for a total transaction of $510,000.00. Following the sale, the executive vice president now directly owns 64,030 shares in the company, valued at approximately $5,442,550. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.42% of the company’s stock.

Institutional Investors Weigh In On CF Industries

Several institutional investors have recently bought and sold shares of CF. Nordea Investment Management AB increased its position in CF Industries by 9.5% during the 3rd quarter. Nordea Investment Management AB now owns 18,942 shares of the basic materials company’s stock valued at $1,635,000 after buying an additional 1,636 shares in the last quarter. Teachers Retirement System of The State of Kentucky raised its holdings in CF Industries by 926.1% during the third quarter. Teachers Retirement System of The State of Kentucky now owns 183,711 shares of the basic materials company’s stock valued at $15,751,000 after acquiring an additional 165,808 shares during the period. Comerica Bank raised its holdings in CF Industries by 133.8% during the third quarter. Comerica Bank now owns 54,551 shares of the basic materials company’s stock valued at $4,677,000 after acquiring an additional 31,215 shares during the period. Klein Pavlis & Peasley Financial Inc. purchased a new stake in shares of CF Industries in the fourth quarter worth about $1,627,000. Finally, Raymond James & Associates lifted its position in shares of CF Industries by 25.4% in the fourth quarter. Raymond James & Associates now owns 133,439 shares of the basic materials company’s stock worth $10,608,000 after buying an additional 27,027 shares in the last quarter. 93.06% of the stock is currently owned by hedge funds and other institutional investors.

CF Industries Stock Down 5.5 %

The company has a debt-to-equity ratio of 0.35, a current ratio of 3.81 and a quick ratio of 3.44. The business has a 50-day moving average of $81.70 and a 200 day moving average of $79.48. The company has a market capitalization of $13.83 billion, a PE ratio of 9.40, a P/E/G ratio of 2.25 and a beta of 1.02.

CF Industries Company Profile

CF Industries Holdings, Inc, together with its subsidiaries, engages in the manufacture and sale of hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities in North America, Europe, and internationally. It operates through Ammonia, Granular Urea, UAN, AN, and Other segments.