American Axle & Manufact. Holdings, Inc. (AXL) Updates Their 2015 and 2016 Outlooks – Wall Street Responds with Selloff


American Axle & Manufact. Holdings, Inc. (NYSE:AXL) today announced some updates concerning their 2015 and 2016 outlooks, as the company is set to present at the 2016 Deutsche Bank Global Auto Industry Conference in Detroit, Michigan.

For 2015, the company is estmiating full year sales to come in at around $3.9 billion with the full year EBITDA margin to be between 14.5 and 14.75% of sales. Ful year free cash flow is expected to be between $185 million and $190 million, and full year capital spending will account for 5% of sales. American Axle & Manufact. Holdings, Inc. (NYSE:AXL) announced that they prepayed the remaining principal balance on their $135.9 million secured Term Loan Facility.

For 2016, the guidance numbers are coming in a bit lower than investors had hoped for.

American Axle & Manufact. Holdings, Inc. (NYSE:AXL) is targeting sales of $4.0 billion in 2016. This sales projection is based on the anticipated launch schedule of programs in AAM’s new and incremental business backlog and the assumption that the U.S. Seasonally Adjusted Annual Rate of sales (“SAAR”) is in the range of 17.5 million to 18.0 million light vehicle units in 2016. As for EBITDA margine, the company is expecting somewhere between 14.5 and 14.75% of sales in 2016. <BR

“Approximately 60% of AAM’s new and incremental business backlog for 2016 – 2018 is for customers other than GM,” the company explained. “This includes new and expanded orders supporting multiple global premium vehicle manufacturers including Ford, Fiat Chrysler Automotive, Jaguar Land Rover, Nissan, Mercedes Benz, Honda, Isuzu, and MAN.”

The stock is down 18.35% or $3 following the news, hitting $13.35 per share. About 5.21M shares traded hands or 334.17% up from the average. AXL has declined 26.45% since June 9, 2015 and is downtrending. It has underperformed the S&P500 by 18.97%.

From a total of 3 analysts covering American Axle & Manufacturing (NYSE:AXL) stock, 1 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $26 while the lowest target price is $22. The mean of all analyst targets is $23.67 which is 77.30% above today’s ($13.35) stock price. American Axle & Manufacturing was the topic of 8 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets downgraded shares on December 15 to a “Sector Perform” rating.

The institutional sentiment decreased to 0.88 in Q2 2015. It’s down 1.01, from 1.89 in 2015Q2. The ratio turned negative, as 41 funds sold all their American Axle & Manufact. Holdings, Inc. shares they owned while 69 reduced their positions. 26 funds bought stakes while 71 increased their total positions. Institutions now own 83.40 million shares which is 6.05% more than the previous share count of 78.64 million in 2015Q2.

Sib Llc holds 2.88% of its total portfolio in American Axle & Manufact. Holdings, Inc., equating to 177,456 shares. Copper Rock Capital Partners Llc owns 1.22 million shares representing 2.06% of their total US portfolio. Moreover, Cloud Gate Capital Llc has 2.04% of their total portfolio invested in the company, equating to 215,455 shares. The Illinois-based New Vernon Investment Management Llc has a total of 1.87% of their portfolio invested in the stock. Anchor Bolt Capital Lp, a Illinois-based fund reported 2.68 million shares owned.

Since March 12, 2015, the stock had 0 insider purchases, and 2 insider sales for a total of $671,193 in net activity. Sofia John S sold 8,748 shares worth $185,839. Proctor Steven J sold 23,500 shares worth $485,354. Chappell Elizabeth Anne sold 4,024 shares worth $98,833.

American Axle & Manufacturing Holdings, Inc. is an automotive supplier. The company has a market cap of $1.19 billion. The Firm makes, engineers, creates and validates driveline and drivetrain systems and related components and chassis modules. It has 5.67 P/E ratio. The Firm provides these components for light trucks, sport utility vehicles , passenger cars, crossover vehicles and commercial vehicles.