CF Industries Holdings Inc. (NYSE: CF) stock fell -1.27% on Friday to $96.92 against a previous-day closing price of $98.17. With 2.75 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.32 million shares. During the session, the Agricultural Inputs company that operates in wider Basic Materials sector, reached to the highest price of $102.21 whereas the lowest price it dropped to was $96.42. The 52-week range on CF shows that it touched its highest point at $113.49 and its lowest point at $43.19 during that stretch. It currently has a 1-year price target of $107.16. With its current market cap of 20.04 billion, CF has annualized dividend of $1.60 while the current yield stands at 1.65%. Beta for the stock currently stands at 1.06.
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 CF was up-trending over the past week, with a rise of 2.42%, but this was up by 16.00% over a month. Three-month performance dropped to -3.72% while six-month performance rose 30.16%. The stock gained 108.65% in the past year, while it has gained 36.93% so far this year. A look at the trailing 12-month EPS for CF yields 7.75 with Next year EPS estimates of 12.61. For the next quarter, that number is 6.05. This implies an EPS growth rate of 187.90% for this year and -29.77% for next year. EPS is expected to grow by 3.77% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 41.00%.
Float and Shares Shorts:
At present, 208.60 million CF shares are outstanding with a float of 207.76 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.57 million, which was 3.15% higher than short shares on Jun 14, 2022. In addition to Mr. W. Anthony Will as the firm’s Pres, CEO & Director, Mr. Christopher D. Bohn serves as its Sr. VP & CFO.
Through their ownership of 94.09% of CF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.24% of CF, in contrast to 37.16% held by mutual funds. Shares owned by individuals account for 1.61%. As the largest shareholder in CF with 11.94% of the stake, The Vanguard Group, Inc. holds 24,897,913 shares worth 24,897,913. A second-largest stockholder of CF, Fidelity Management & Research Co, holds 18,123,648 shares, controlling over 8.69% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in CF, holding 12,624,883 shares or 6.05% stake. With a 2.95% stake in CF, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,154,081 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of CF stock, is the second-largest Mutual Fund holder. It holds 4,801,889 shares valued at 411.67 million. Vanguard 500 Index Fund holds 2.21% of the stake in CF, owning 4,616,160 shares worth 395.74 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CF since 20 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CF analysts setting a high price target of $132.00 and a low target of $78.00, the average target price over the next 12 months is $107.00. Based on these targets, CF could surge 36.19% to reach the target high and fall by -19.52% to reach the target low. Reaching the average price target will result in a growth of 10.4% 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. CF will report FY 2022 earnings on 02/14/2023. Analysts have provided yearly estimates in a range of $20.51 being high and $15.20 being low. For CF, this leads to a yearly average estimate of $18.19. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. CF Industries Holdings Inc. surprised analysts by -$0.34 when it reported $5.58 EPS against a consensus estimate of $5.92. The surprise factor in the prior quarter was -$0.14. Based on analyst estimates, the high estimate for the next quarter is $4.75 and the low estimate is $1.60. The average estimate for the next quarter is thus $3.43.
Summary of Insider Activity:
Insiders traded CF stock several times over the past three months with 11 Buys and 3 Sells. In these transactions, 48,891 shares were bought while 44,156 shares were sold. The number of buy transactions has increased to 65 while that of sell transactions has risen to 83 over the past year. The total number of shares bought during that period was 2,627,307 while 2,850,999 shares were sold.