An interesting stock that came up in some of our conversations today is American Axle & Manufacturing Holdings, Inc. (NYSE:AXL). At current price of $9.3, the shares have already added 0.25 points (2.71% higher) from its previous close of $9.05. Should you buy or avoid them? The stock sets an active trading volume day with a reported 490573 contracts so far this session. AXL shares had a relatively better volume day versus average trading capacity of 1.93 million shares, but with a 0.11 billion float and a -8.77% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AXL stock indicates that the average analyst price target is $13.4 per share. This means the stock has a potential increase of 44.09% from where the AXL share price has been trading recently.
During the recent trading session for American Axle & Manufacturing Holdings, Inc. (NYSE:AXL), the company witnessed their stock drop by $-0.95 over a week and tumble down $-1.27 from the price 20 days ago. When compared to their established 52-week high of $17.2, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 02/21/19. The recent low of $5.86 stood for a -45.96% since 03/09/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.33 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for American Axle & Manufacturing Holdings, Inc., the two-week RSI stands at 36.77. This figure suggests that AXL stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current AXL readings is similarly very revealing as it has a stochastic reading of 11.66% at this stage. This figure means that AXL share price today is being overbought.
Technical chart claims that American Axle & Manufacturing Holdings, Inc. (AXL) would settle between $9.17/share to $9.3/share level. However, if the stock price goes below the $8.86 mark, then the market for American Axle & Manufacturing Holdings, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $8.68 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.63. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Barclays lowered their recommendation on shares of AXL from Overweight to Equal Weight in their opinion released on November 05. Credit Suisse, analysts launched coverage of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) stock with a Outperform recommendation, according to their flash note issued to investors on June 27. Analysts at BofA/Merrill released an upgrade from Neutral to Buy for the stock, in a research note that dated back to February 20.
AXL equity has an average rating of 2.79, with the figure leaning towards a bullish end. 9 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 5 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 5 analysts rated American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, AXL stock price is currently trading at 4.18X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 18.7. American Axle & Manufacturing Holdings, Inc. current P/B ratio of 0.7 means it is trading at a discount against its industry’s 2.3.
American Axle & Manufacturing Holdings, Inc. (AXL)’s current-quarter revenues are projected to climb by nearly -11.7% to hit $1.5 billion, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over -9.2% from $7.27 billion to a noteworthy $6.6 billion. At the other end of the current quarter income statement, American Axle & Manufacturing Holdings, Inc. is expected to see its adjusted earnings surge by roughly -100% to hit $0 per share. For the fiscal year, AXL’s earnings are projected to climb by roughly -54.6% to hit $1.49 per share.