American Axle & Manufacturing Holdings Inc. (NYSE: AXL) stock fell -1.99% on Monday to $7.40 against a previous-day closing price of $7.55. With 1.39 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.32 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $7.48 whereas the lowest price it dropped to was $7.32. The 52-week range on AXL shows that it touched its highest point at $11.19 and its lowest point at $6.61 during that stretch. It currently has a 1-year price target of $9.25. Beta for the stock currently stands at 2.31.
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 -3.27%, but this was up by 0.41% over a month. Three-month performance dropped to -8.53% while six-month performance fell -1.60%. The stock lost -17.41% in the past year, while it has lost -5.37% so far this year. A look at the trailing 12-month EPS for AXL yields 0.36 with Next year EPS estimates of 0.79. For the next quarter, that number is 0.14. This implies an EPS growth rate of 967.50% for this year and 132.45% for next year. EPS is expected to grow by 10.54% 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, 117.00 million AXL shares are outstanding with a float of 112.99 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.12 million, which was 1.81% higher than short shares on Jul 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 92.00% of AXL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.63% of AXL, in contrast to 39.24% held by mutual funds. Shares owned by individuals account for 36.03%. As the largest shareholder in AXL with 14.64% of the stake, BlackRock Fund Advisors holds 17,139,308 shares worth 17,139,308. A second-largest stockholder of AXL, The Vanguard Group, Inc., holds 13,527,294 shares, controlling over 11.56% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in AXL, holding 6,697,434 shares or 5.72% stake. With a 7.08% stake in AXL, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 8,281,620 shares are owned by the mutual fund manager. The Fidelity Mid Cap Stock Fund, which owns about 2.89% of AXL stock, is the second-largest Mutual Fund holder. It holds 3,378,256 shares valued at 25.51 million. Vanguard Total Stock Market ETF holds 2.85% of the stake in AXL, owning 3,338,669 shares worth 25.21 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 Jun 29, 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 $9.56. Based on these targets, AXL could surge 62.16% to reach the target high and rise by 8.11% to reach the target low. Reaching the average price target will result in a growth of 29.19% 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 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 40,000 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 2,385,102 while 1,590,960 shares were sold.