Merrill Lynch Downgrades American Axle to Sell

By Jason Carr

Merrill Lynch analyst John Murphy downgraded American Axle (NYSE: AXL) to Sell today and set a price target of $13. The company’s shares closed yesterday at $13.74.

According to TipRanks.com, Murphy is a 4-star analyst with an average return of 8.4% and a 65.2% success rate. Murphy covers the Consumer Goods sector, focusing on stocks such as Fiat Chrysler Automobiles, Cooper-Standard Holdings, and Honda Motor Company.

Currently, the analyst consensus on American Axle is Hold and the average price target is $17.33, representing a 26.1% upside.

In a report issued on November 4, CLSA also downgraded the stock to Sell with a $14 price target.

Based on American Axle’s latest earnings report from September 30, the company posted quarterly revenue of $1.01B and quarterly net profit of $61.7M. In comparison, last year the company earned revenue of $971.6M and had a net profit of $60.9M.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, John Sofia, the VP Global Program Management of AXL sold 18,621 shares for a total of $326,972.

American Axle & Manufacturing Holdings, Inc. operates as a supplier to the automotive industry. It operates through its subsidiaries, which are engaged in the manufacturing, engineering, designing and validation of driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, passenger cars, crossover and commercial vehicles. The company’s driveline and drivetrain systems include components that transfer power from the transmission and deliver it to the drive wheels. American Axle & Manufacturing Holdings was founded by Richard E. Dauch on March 1, 1994 and is headquartered in Detroit, MI.