CF Industries (NYSE:CF) Sets New 1-Year High – Time to Buy?

CF Industries Holdings, Inc. (NYSE:CF) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $121.33 and last traded at $121.02, with a volume of 2449716 shares changing hands. The stock had previously closed at $115.78.

Key Stories Impacting CF Industries

Here are the key news stories impacting CF Industries this week:

• Positive Sentiment: Geopolitical tailwind: Coverage points to the Iran conflict lifting fertilizer prices and creating a bullish backdrop for fertilizer producers like CF, which can benefit from firmer ammonia/urea spreads and stronger pricing. Read More.
• Positive Sentiment: Recent fundamentals: CF reported an earnings beat in mid?February (EPS and revenue above estimates), a healthy net margin and a $0.50 quarterly dividend (annualized $2.00, ~1.8% yield), supporting the company’s cash flow profile. Read More.
• Neutral Sentiment: Institutional positioning: Mixed adjustments by hedge funds and smaller institutional buys/sells were reported; institutional ownership remains high (~93%), which can mute share volatility over time. Read More.
• Negative Sentiment: Large executive sales: EVP Bert A. Frost disclosed sales of >15,500 shares across filings (10,000 shares on Mar 6 and 5,534 on Mar 9), representing material proceeds and partial position reductions; investors often interpret repeated senior?level sales as a negative near?term signal. Read More.
• Negative Sentiment: Broader insider selling: Several other officers (VPs and SVPs) disclosed sales this week — combined disclosed proceeds across filings are roughly $4.3M, with notable percentage reductions in some officers’ holdings. That cluster of sales is pressuring sentiment despite the company’s operational strength. Read More.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on CF. Barclays upped their price target on shares of CF Industries from $100.00 to $120.00 and gave the stock an “overweight” rating in a research report on Tuesday, March 3rd. Scotiabank lifted their price objective on CF Industries from $82.00 to $85.00 and gave the stock a “sector perform” rating in a report on Monday, February 23rd. Wells Fargo & Company boosted their price objective on CF Industries from $100.00 to $113.00 and gave the stock an “overweight” rating in a research note on Friday, February 20th. Wall Street Zen cut CF Industries from a “buy” rating to a “hold” rating in a report on Sunday, December 14th. Finally, The Goldman Sachs Group restated a “neutral” rating and issued a $103.00 target price on shares of CF Industries in a research report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $96.87.

CF Industries Trading Down 1.0%

The stock has a market capitalization of $16.89 billion, a PE ratio of 12.21 and a beta of 0.68. The company’s 50 day moving average price is $92.74 and its two-hundred day moving average price is $86.72. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.37 and a quick ratio of 2.93.

CF Industries (NYSE:CF) last announced its quarterly earnings data on Wednesday, February 18th. The basic materials company reported $2.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.53 by $0.06. The company had revenue of $1.87 billion during the quarter, compared to analysts’ expectations of $1.78 billion. CF Industries had a net margin of 20.54% and a return on equity of 19.84%. CF Industries’s revenue was up 22.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.89 EPS. As a group, analysts expect that CF Industries Holdings, Inc. will post 5.83 earnings per share for the current year.

CF Industries Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Friday, February 13th were given a $0.50 dividend. The ex-dividend date was Friday, February 13th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.8%. CF Industries’s dividend payout ratio is 22.22%.

Insider Transactions at CF Industries

In related news, EVP Bert A. Frost sold 5,534 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $116.21, for a total value of $643,106.14. Following the completion of the sale, the executive vice president owned 81,722 shares of the company’s stock, valued at approximately $9,496,913.62. This trade represents a 6.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Susan L. Menzel sold 7,200 shares of CF Industries stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $111.00, for a total value of $799,200.00. Following the transaction, the executive vice president owned 73,803 shares in the company, valued at approximately $8,192,133. The trade was a 8.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 47,118 shares of company stock valued at $5,280,588. 0.71% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new stake in shares of CF Industries in the fourth quarter valued at about $193,657,000. Dimensional Fund Advisors LP raised its stake in CF Industries by 37.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,312,225 shares of the basic materials company’s stock worth $333,501,000 after purchasing an additional 1,178,516 shares during the period. Worldquant Millennium Advisors LLC purchased a new position in CF Industries during the second quarter worth about $96,560,000. Arrowstreet Capital Limited Partnership boosted its holdings in CF Industries by 926.2% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,118,446 shares of the basic materials company’s stock valued at $102,897,000 after purchasing an additional 1,009,455 shares during the last quarter. Finally, Caisse de depot et placement du Quebec boosted its holdings in CF Industries by 52.4% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 1,775,106 shares of the basic materials company’s stock valued at $159,227,000 after purchasing an additional 610,259 shares during the last quarter. Hedge funds and other institutional investors own 93.06% of the company’s stock.

CF Industries Company Profile

CF Industries Holdings, Inc is a leading global manufacturer of hydrogen and nitrogen products for agricultural and industrial customers. The company specializes in the production of ammonia, granular urea, urea ammonium nitrate (UAN), nitric acid and ammonium nitrate, which serve as key inputs for fertilizer blends, industrial chemicals and other downstream applications.

Headquartered in Deerfield, Illinois, CF Industries operates production facilities and distribution terminals across North America and the United Kingdom.