Merrill Lynch Reiterates a Sell Rating on American Axle

By Austin Angelo

In a report released today, John Murphy from Merrill Lynch reiterated a Sell rating on American Axle (NYSE: AXL), with a price target of $13. The company’s shares opened today at $15.70.

According to, Murphy is a 4-star analyst with an average return of 7.1% and a 62.7% 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 Moderate Sell and the average price target is $14, representing a -10.8% downside.

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 for the quarter ending September 30, the company posted quarterly revenue of $1.01 billion and quarterly net profit of $60.3 million. In comparison, last year the company earned revenue of $972 million and had a net profit of $59.5 million.

Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AXL in relation to earlier this year. Earlier this month, David Dauch, the Chairman & CEO of AXL bought 50,000 shares for a total of $723,361.

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.