Should Investors Be Selling American Axle & Manufacturing (NYSE:AXL) Stock Following Today’s RBC Capital Markets Downgrade?


American Axle & Manufacturing (NYSE:AXL) Receives a Downgrade

The Equity Rating of American Axle & Manufacturing (NYSE:AXL) rating was downgraded by professional analysts at RBC Capital Markets from the previous “Outperform” rating to a “Sector Perform” rating in an analyst research report finalized on Tuesday, 15 December.

From a total of 11 analysts covering American Axle & Manufacturing (NYSE:AXL) stock, 7 rate it a ”Buy”, 1 a “Sell”, and 5 a ”Hold”. This means that 54% of the ratings are positive. The highest target price is $29 while the lowest target price is $20. The mean of all analyst targets is $24.73 with a 19.42% above today’s ($20.24) stock price. American Axle & Manufacturing was the topic of 7 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on August 3 with “Outperform” rating.

Approximately 1.34M shares of stock traded hands or 59.18% up from the average. American Axle & Manufact. Holdings, Inc. (NYSE:AXL) has declined 14.37% since May 12, 2015 and is downtrending. It has underperformed by 10.70% the S&P500.

The overall sentiment of institutions has decreased to 0.88 in Q2 2015. Its down 1.01, from 1.89 in 2015Q2. The ratio dived, as 41 institutions have sold all the shares of American Axle & Manufact. Holdings, Inc. that they owned while 69 funds have taken shares off the table. 26 funds have purchased shares for the first time while 71 added to their positions. These institutions now hold 83.40 million shares or 6.05% more than the 78.64 million shares they owned in 2015Q2.

The Fund Sib Llc currently is holding shares equating to 2.88% of its total portfolio in American Axle & Manufact. Holdings, Inc. representing a total of 177,456 shares. Another fund,Copper Rock Capital Partners Llc, is holding a total of 1.22 million shares equating to 2.06% of their holdings. Additionally, Cloud Gate Capital Llc has a 215,455 share stake in American Axle & Manufact. Holdings, Inc. which represents 2.04% of their total portfolio. The Fund, New Vernon Investment Management Llc, based out of Illinois, has also built up a stake in the stock, which represents a total of 1.87% of their total portfolio. Finally Anchor Bolt Capital Lp, a fund which is based in the state of Illinois reported a total holdings of 2.68 million shares.

Insider activity is a very important aspect to track on any stock. Going back to March 12, 2015, shareholders of American Axle & Manufact. Holdings, Inc. have witnessed 0 insider buys, and a total of 2 selling transactions equating to a net activity of approximately $671,193 . Sofia John S sold 8,748 shares worth approximately $185,839. Proctor Steven J sold 23,500 shares worth approximately $485,354. Chappell Elizabeth Anne sold 4,024 shares worth approximately $98,833.

American Axle & Manufacturing Holdings, Inc. is an automotive supplier. The company has a market cap of $1.57 billion. The Firm makes, engineers, creates and validates driveline and drivetrain systems and related components and chassis modules. It has 8.59 P/E ratio. The Firm provides these components for light trucks, sport utility vehicles , passenger cars, crossover vehicles and commercial vehicles.

According to Zacks Investment Research, “American Axle & Manufacturing Holdings Inc. is a world leader in the design, engineering and manufacture of driveline systems for light trucks and sport utility vehicles. The company’s product lines include rear axles, independent front four-wheel drive axles, all-wheel-drive system components, independent rear-drive systems, TracRite differentials, propeller shafts, steering linkages, anti-roll systems, steering & suspension systems, and forged products. (PRESS RELEASE)”