American Axle & Manufacturing Holdings, Inc. (AXL) Technical Signs to Spot a Rally

Looking into the technicals, American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) has scored Hold indication. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the AXL’s short-term trajectory should know that short terms indicators for the stock averaged 40% Sell with an average daily trading volume over the past 20 days at 1764080 shares. AXL stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 1905986 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 2197866 shares, is 0% Hold on the basis of long term indicators.

The share price is currently staying around the first support level of $13.7. Below this, the next support is placed in the zone of $13.38. Till the time, the AXL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 53.09 on daily chart, which may remain a cause for concern. If the price breaks below $13.38 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $14.22 mark may result into a pull-back move towards $14.43 level.

American Axle & Manufacturing Holdings, Inc. (AXL) is projected to climb by 17.06 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $26 price as 12-month high target. This represents a whopping 85.58 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $16, which represents a return potential of 14.2 percent when compared to the closing price of the stock of $14.01 on Monday, February 11. The lowest price target for the stock is $10 — slightly more than -28.62 percent from AXL’s current share price.

Here’s a rundown of insider trading activity for sense of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL). The earliest insider trade took place on 11/29/2018. Oal Tolga I gathered a total of 1.6 thousand shares of company at average share price of $12.21. The total for the purchase was set at $19.54 thousand. After this transaction, the President Driveline account balance stood at 84.47 thousand shares. The stock grew 14.74 percent since that insider purchase. On 11/29/2018, Oal Tolga I, President Driveline, purchased 2.4 thousand shares at a price per share of $12.2. This added 29.28 thousand shares to the insider’s fortune and the stock saw a 14.84 percent rally in value since the news became public. This transaction left 82.87 thousand shares in the President Driveline account. On 11/21/2018, Director Miller William P Ii performed a purchase transaction worth $17.67 thousand. This purchase at $11.78 each has added 1.5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 18.93 percent increase since the transaction was reported. The insider now is left with 74.61 thousand shares remaining in the account. Lynch Michael Joseph, who performs the VP & Controller job, bought 1 thousand shares for $12.07 thousand. The acquisition occurred on 11/20/2018 was priced at $12.07 per share. The share price soared 16.07 percent since the reporting date. Lynch Michael Joseph now left with a stake of 31.57 thousand AXL stock worth $442.23 thousand after the insider buying.

AXL shares accumulated 0.26 points or 1.89 percent on Monday to $14.01 with a light trade volume of 1.838 million shares. After opening the session at $13.78, the shares went as high as $14.115 and as low as $13.59, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.59 billion and now has 113.73 million shares outstanding. American Axle & Manufacturing Holdings, Inc. (AXL) stock has gained 9.88 percent of market value in 21 trading days.

Analysts at BofA/Merrill upped their rating on shares of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) from Underperform to Neutral in their opinion released on November 05. Analysts at Citigroup issued an upgrade from Neutral to Buy for the stock, in a research note that dated back to March 27.

AXL stock has a trailing 3-year beta of 1.68, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.38 a share in the trailing twelve months. The stock’s value has surged 26.22 percent year to date (YTD) against a decline of -11.16 percent in 12 month’s time. The company’s shares still trade -27.56 percent away from its 1-year high of $19.34 and 38.3 percent up from 52-week low of $10.13. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of American Axle & Manufacturing Holdings, Inc. (AXL) are trading at a P/E ratio of 4.07 times earnings reported for the past 12 months. The industry AXL operates in has an average P/E of 15.92. Its P/E ratio went as low as 5.65X and as high as 16.63 over the 5-year span. Further, it is sporting a 0.22 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.45. 16.5 percent is the gross profit margin for American Axle & Manufacturing Holdings, Inc. and operating margin sits at 8.9 percent. Along with this, the net profit margin is 5.5 percent.

AXL will be declaring its Q4 financial results on February 15. Analysts are forecasting revenue to suffer decline of -2.9 percent to $1.68B in the next fiscal quarter, while earnings are seen soaring by nearly -52.81 percent to $0.42 per share. History has shown that shares in American Axle & Manufacturing Holdings, Inc. have gone up on 19 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.63 per share, worse than the $0.9, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.82B, better than the $1.78B analysts expected. Earnings are estimated to increase by -1.5 percent this year, -4.83 percent next year and continue to increase by -1.5 percent annually for the next 5 years.