American Axle & Manufacturing Holdings Inc. (NYSE: AXL) stock fell -1.81% on Friday to $8.66 against a previous-day closing price of $8.82. With 1.32 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.77 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $8.96 whereas the lowest price it dropped to was $8.65. The 52-week range on AXL shows that it touched its highest point at $10.91 and its lowest point at $6.36 during that stretch. It currently has a 1-year price target of $9.34. Beta for the stock currently stands at 2.15.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AXL was down-trending over the past week, with a drop of -0.92%, but this was up by 17.34% over a month. Three-month performance surged to 25.14% while six-month performance rose 0.23%. The stock lost -12.44% in the past year, while it has lost -7.18% so far this year. A look at the trailing 12-month EPS for AXL yields -0.27 with Next year EPS estimates of 1.43. For the next quarter, that number is 0.10. This implies an EPS growth rate of 101.00% for this year and 60.59% for next year. EPS is expected to grow by 33.87% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -56.10%.
Float and Shares Shorts:
At present, 114.20 million AXL shares are outstanding with a float of 112.03 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.76 million, which was 5.03% higher than short shares on Jun 14, 2022. In addition to Mr. David Charles Dauch as the firm’s Chairman & CEO, Mr. Michael K. Simonte serves as its Pres.
Through their ownership of 93.74% of AXL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.62% of AXL, in contrast to 39.50% held by mutual funds. Shares owned by individuals account for 35.13%. As the largest shareholder in AXL with 14.63% of the stake, BlackRock Fund Advisors holds 16,748,398 shares worth 16,748,398. A second-largest stockholder of AXL, The Vanguard Group, Inc., holds 13,956,790 shares, controlling over 12.19% of the firm’s shares. Barrow, Hanley, Mewhinney & Strau is the third largest shareholder in AXL, holding 7,486,568 shares or 6.54% stake. With a 7.05% stake in AXL, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 8,072,232 shares are owned by the mutual fund manager. The American Beacon Small Cap Value F, which owns about 2.99% of AXL stock, is the second-largest Mutual Fund holder. It holds 3,424,370 shares valued at 25.79 million. Vanguard Total Stock Market Index holds 2.81% of the stake in AXL, owning 3,211,377 shares worth 24.18 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AXL since 8 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AXL analysts setting a high price target of $15.00 and a low target of $7.00, the average target price over the next 12 months is $9.68. Based on these targets, AXL could surge 73.21% to reach the target high and fall by -19.17% to reach the target low. Reaching the average price target will result in a growth of 11.78% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AXL will report FY 2022 earnings on 02/10/2023. Analysts have provided yearly estimates in a range of $1.01 being high and $0.50 being low. For AXL, this leads to a yearly average estimate of $0.89. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. American Axle & Manufacturing Holdings Inc. surprised analysts by $0.16 when it reported $0.19 EPS against a consensus estimate of $0.03. The surprise factor in the prior quarter was -$0.12. Based on analyst estimates, the high estimate for the next quarter is $0.31. The average estimate for the next quarter is thus $0.10.
Summary of Insider Activity:
Insiders traded AXL stock several times over the past three months with 9 Buys and 0 Sells. In these transactions, 171,855 shares were bought while 0 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 952,501 while 114,343 shares were sold.