Do Colfax Corporation (CFX) Investors Know A Secret?

Analysts are forecasting revenue to climb 12.2 percent to $981M in the next fiscal quarter, while earnings are seen soaring by nearly 40 percent to $0.63 per share. History has shown that shares in Colfax Corporation have gone down on 21 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.54 per share, better than the $0.53, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $875M, worse than the $891M analysts expected. Earnings are estimated to increase by -154.9 percent this year, 13.24 percent next year and continue to increase by 12.15 percent annually for the next 5 years.

Colfax Corporation (CFX) will probably climb 6.42 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $40 price as 12-month high target. This represents a whopping 52.85 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $29, which represents a return potential of 10.81 percent when compared to the closing price of the stock of $26.17 on Wednesday, February 13. The lowest price target for the stock is $21 — slightly more than -19.76 percent from CFX’s current share price.

The stock is currently hovering around the first support level of $25.16. Below this, the next support is placed in the zone of $24.15. Till the time, the CFX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 67.95 on daily chart, which may remain a cause for concern. If the price breaks below $24.15 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $27.08 mark may result into a pull-back move towards $27.99 level.

On 13th of February, Colfax Corporation (NYSE:CFX) shares ended higher after a volatile session. The shares accumulated 1.52 points or 6.17 percent at $26.17 with a heavy trade volume of 4.454 million shares. After opening the session at $25.07, the shares went as high as $26.98 and as low as $25.06, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.1 billion and now has 118.34 million shares outstanding. Colfax Corporation (CFX) stock has gained 18.31 percent of market value in 21 trading days.

CFX stock has a trailing 3-year beta of 1.55, 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 -$0.52 a share in the trailing twelve months. The stock’s value has surged 25.22 percent year to date (YTD) against a decline of -20.79 percent in 12 month’s time. The company’s shares still trade -29.37 percent away from its 1-year high of $37.05 and 38.1 percent up from 52-week low of $18.95. The average consensus rating on the company is 2.5, 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 Colfax Corporation (CFX) are trading at a P/E ratio of 33.05 times earnings reported for the past 12 months. The industry CFX operates in has an average P/E of 24.95. Its P/E ratio went as low as 17.09X and as high as 40.4 over the 5-year span. Further, it is sporting a 0.87 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4.25. 30.8 percent is the gross profit margin for Colfax Corporation and operating margin sits at 0.3 percent. Along with this, the net profit margin is 3 percent.

Let’s take a look at some insider activity at Colfax Corporation (NYSE:CFX) and see the pattern. The earliest insider trade took place on 01/07/2019. Trerotola Matthew L. parted with a total of 22.55 thousand shares of company at average share price of $21.36. The total for the sales was set at $481.73 thousand. After this transaction, the President & CEO account balance stood at 244.19 thousand shares. The stock grew 22.52 percent since that insider sale. On 11/19/2018, Clark Lynn H, SVP – Global Human Resources, sold 3.33 thousand shares at a price per share of $26.18. This removed 87.23 thousand shares from the insider’s fortune and the stock saw a -0.04 percent retreat in value since the news became public. This transaction left 38.33 thousand shares in the SVP – Global Human Resources account.

On 11/19/2018, SVP, GC & Secretary Puckett A. Lynne performed a sale transaction worth $66.5 thousand. This sale at $26.18 each has eliminated 2.54 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -0.04 percent decrease since the transaction was reported. The insider now is left with 55.93 thousand shares remaining in the account. Brander Ian, who performs the Howden CEO job, sold 3.23 thousand shares for $84.61 thousand. The disposal occurred on 11/19/2018 was priced at $26.18 per share. The share price plunged -0.04 percent since the reporting date. Brander Ian now left with a stake of 27.04 thousand CFX stock worth $707.66 thousand after the insider selling.