CF Industries (NYSE:CF) Stock Price Down 6.1% Following Weak Earnings

CF Industries Holdings, Inc. (NYSE:CF) was down 6.1% during mid-day 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. Approximately 2,040,405 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 2,421,529 shares. The stock had previously closed at $77.97.

The basic materials company reported $1.03 EPS for the quarter, missing the consensus estimate of $1.47 by ($0.44). CF Industries had a return on equity of 13.91% and a net margin of 19.03%. The firm had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same period in the previous year, the firm posted $2.85 earnings per share. The firm’s revenue was down 26.9% on a year-over-year basis.

CF Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Stockholders of record on Wednesday, May 15th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Tuesday, May 14th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.70%. CF Industries’s payout ratio is 33.22%.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Bank of America restated a “neutral” rating and issued a $88.00 price target (down previously from $96.00) on shares of CF Industries in a report on Wednesday, April 10th. Wells Fargo & Company reduced their target price on shares of CF Industries from $98.00 to $97.00 and set an “overweight” rating on the stock in a report on Friday, February 16th. Royal Bank of Canada reiterated an “outperform” rating and issued a $95.00 price target on shares of CF Industries in a report on Friday, February 16th. Barclays upgraded CF Industries from an “underweight” rating to an “equal weight” rating and set a $85.00 price objective on the stock in a research note on Friday, January 12th. Finally, Berenberg Bank increased their target price on CF Industries from $68.00 to $69.00 and gave the company a “hold” rating in a research note on Wednesday, April 17th. Two research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $85.14.

Insider Transactions at CF Industries

In related news, EVP Bert A. Frost sold 6,000 shares of the stock in a transaction dated Tuesday, March 12th. The shares were sold at an average price of $85.00, for a total transaction of $510,000.00. Following the completion of the sale, the executive vice president now owns 64,030 shares in the company, valued at approximately $5,442,550. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.42% of the stock is currently owned by insiders.

Institutional Trading of CF Industries

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Westside Investment Management Inc. bought a new position in shares of CF Industries during the 1st quarter valued at about $25,000. Turtle Creek Wealth Advisors LLC bought a new stake in CF Industries in the 4th quarter valued at approximately $29,000. ORG Partners LLC lifted its stake in CF Industries by 428.6% in the 3rd quarter. ORG Partners LLC now owns 370 shares of the basic materials company’s stock valued at $32,000 after acquiring an additional 300 shares in the last quarter. Bruce G. Allen Investments LLC bought a new stake in CF Industries in the 4th quarter valued at approximately $32,000. Finally, Meeder Asset Management Inc. bought a new stake in CF Industries in the 4th quarter valued at approximately $36,000. 93.06% of the stock is currently owned by institutional investors and hedge funds.

CF Industries Price Performance

The stock has a market cap of $13.91 billion, a P/E ratio of 12.27, a PEG ratio of 2.22 and a beta of 1.02. The company has a 50 day simple moving average of $81.59 and a 200 day simple moving average of $79.44. The company has a current ratio of 3.81, a quick ratio of 3.44 and a debt-to-equity ratio of 0.35.

About CF Industries

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.