American Axle & Manufacturing Holdings Inc. (NYSE: AXL) stock jumped 2.25% on Tuesday to $7.27 against a previous-day closing price of $7.11. With 1.18 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.99 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $7.36 whereas the lowest price it dropped to was $7.05. The 52-week range on AXL shows that it touched its highest point at $11.96 and its lowest point at $6.61 during that stretch. It currently has a 1-year price target of $9.14. Beta for the stock currently stands at 2.25.
Unlock the Hottest Top 10 Penny Stocks Today! Discover Now
Dive into the world of lucrative penny stocks with MarketClub's groundbreaking "Smart Scan" technology! Get an instant snapshot of the top 50 high volume stocks with a clear direction and outstanding liquidity - in other words, the strongest trending. To unlock this exclusive list, simply provide your first name, last name, and email for instant access.
Gain Access to Top 10 Penny Stocks Now!.
Price Performance and Earnings:
Three-month performance dropped to -17.57% while six-month performance fell -30.76%. The stock gained 7.70% in the past year, while it has lost -7.03% so far this year. A look at the trailing 12-month EPS for AXL yields 0.48 with Next year EPS estimates of 0.85. For the next quarter, that number is 0.10. This implies an EPS growth rate of 967.50% for this year and 125.40% for next year. EPS is expected to grow by 24.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -29.30%.
Float and Shares Shorts:
At present, 115.20 million AXL shares are outstanding with a float of 112.10 million shares on hand for trading. On Apr 27, 2023, short shares totaled 4.0 million, which was 3.42% higher than short shares on Mar 30, 2023. In addition to Mr. David Charles Dauch as the firm’s Chairman & CEO, Mr. Michael Joseph Lynch serves as its Pres & COO.
Through their ownership of 93.25% of AXL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.19% of AXL, in contrast to 40.12% held by mutual funds. Shares owned by individuals account for 32.74%. As the largest shareholder in AXL with 14.97% of the stake, BlackRock Fund Advisors holds 17,151,894 shares worth 17,151,894. A second-largest stockholder of AXL, The Vanguard Group, Inc., holds 14,374,257 shares, controlling over 12.55% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in AXL, holding 6,465,453 shares or 5.64% stake. With a 7.26% stake in AXL, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 8,313,907 shares are owned by the mutual fund manager. The Fidelity Mid Cap Stock Fund, which owns about 3.55% of AXL stock, is the second-largest Mutual Fund holder. It holds 4,071,796 shares valued at 29.11 million. Vanguard Total Stock Market ETF holds 2.91% of the stake in AXL, owning 3,338,669 shares worth 23.87 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, AXL reported revenue of $1.44B and operating income of $67.30M. The EBITDA in the recently reported quarter was $190.00M and diluted EPS was $0.19.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AXL since 0 analysts follow the stock currently. 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 $12.00 and a low target of $8.00, the average target price over the next 12 months is $9.50. Based on these targets, AXL could surge 65.06% to reach the target high and rise by 10.04% to reach the target low. Reaching the average price target will result in a growth of 30.67% 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.
Summary of Insider Activity:
Insiders traded AXL stock several times over the past three months with 15 Buys and 21 Sells. In these transactions, 2,119,891 shares were bought while 1,491,695 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 2,119,891 while 1,550,960 shares were sold.