CNH Industrial (CNHI) Cut to Sell at Zacks Investment Research

CNH Industrial (NYSE:CNHI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “CNH Industrial’s third-largest segment, Powertrain is witnessing a decline in sales volume. Also, its capital expenditure is rising due to increased investments to develop products and technologies, along with capacity expansion, rise in raw material and overhead costs. Declining sales in few segments, along with rising expenses is a concern for the company. Further, tariff disputes, foreign exchange volatility and uncertainty on the Brexit rules might hamper CNH Industrial’s sales. Over the past three months, shares of CNH Industrial have underperformed the industry it belongs to. However, developing several products and technologies across all the segments to remain at par with the technological advancements is a tailwind for the company.”

A number of other research firms have also commented on CNHI. Deutsche Bank lowered shares of CNH Industrial from a “hold” rating to a “sell” rating and lowered their target price for the stock from $12.00 to $8.00 in a report on Wednesday, January 9th. ValuEngine lowered shares of CNH Industrial from a “hold” rating to a “sell” rating in a report on Thursday, October 18th. Finally, Bank of America lowered shares of CNH Industrial from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $14.00 to $12.50 in a report on Wednesday, October 17th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and three have assigned a buy rating to the stock. CNH Industrial currently has a consensus rating of “Hold” and a consensus price target of $13.38.

CNHI stock traded down $0.08 during trading on Monday, hitting $9.64. The company had a trading volume of 32,772 shares, compared to its average volume of 1,056,300. The company has a debt-to-equity ratio of 5.06, a current ratio of 5.51 and a quick ratio of 4.21. CNH Industrial has a 12 month low of $8.41 and a 12 month high of $15.65. The stock has a market capitalization of $13.14 billion, a PE ratio of 20.06 and a beta of 1.11.

CNH Industrial (NYSE:CNHI) last posted its quarterly earnings data on Wednesday, November 7th. The company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.03. CNH Industrial had a net margin of 2.59% and a return on equity of 22.36%. The firm had revenue of $6.69 billion during the quarter, compared to analysts’ expectations of $7.04 billion. During the same quarter in the previous year, the company posted $0.11 EPS. CNH Industrial’s revenue was up .0% on a year-over-year basis. As a group, equities analysts expect that CNH Industrial will post 0.73 earnings per share for the current fiscal year.

Several hedge funds have recently made changes to their positions in the company. Greenleaf Trust grew its holdings in shares of CNH Industrial by 34.6% in the 3rd quarter. Greenleaf Trust now owns 19,290 shares of the company’s stock valued at $232,000 after buying an additional 4,962 shares during the period. First Trust Advisors LP lifted its position in CNH Industrial by 31.9% in the 2nd quarter. First Trust Advisors LP now owns 23,426 shares of the company’s stock valued at $247,000 after acquiring an additional 5,671 shares in the last quarter. HPM Partners LLC lifted its position in CNH Industrial by 72.1% in the 2nd quarter. HPM Partners LLC now owns 17,955 shares of the company’s stock valued at $189,000 after acquiring an additional 7,520 shares in the last quarter. Advisors Asset Management Inc. lifted its position in CNH Industrial by 18.0% in the 2nd quarter. Advisors Asset Management Inc. now owns 64,455 shares of the company’s stock valued at $679,000 after acquiring an additional 9,832 shares in the last quarter. Finally, LPL Financial LLC lifted its position in CNH Industrial by 43.4% in the 3rd quarter. LPL Financial LLC now owns 33,437 shares of the company’s stock valued at $402,000 after acquiring an additional 10,118 shares in the last quarter. 18.80% of the stock is owned by institutional investors.

About CNH Industrial

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, and buses worldwide. The company operates in five segments: Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain, and Financial Services.

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