FreightCar America (RAIL) Reaches New 1-Year Low After Earnings Miss

FreightCar America, Inc. (NASDAQ:RAIL)’s share price hit a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $10.51 and last traded at $10.94, with a volume of 17953 shares. The stock had previously closed at $14.30.

The transportation company reported ($0.50) EPS for the quarter, missing the consensus estimate of ($0.26) by ($0.24). The business had revenue of $78.97 million during the quarter, compared to analyst estimates of $66.00 million. FreightCar America had a negative net margin of 10.46% and a negative return on equity of 10.78%.

Several equities analysts recently weighed in on RAIL shares. CL King downgraded FreightCar America from a “buy” rating to a “neutral” rating in a research note on Thursday. Stifel Nicolaus set a $19.00 price objective on FreightCar America and gave the company a “hold” rating in a research note on Friday, August 3rd. Buckingham Research raised their price objective on FreightCar America from $16.00 to $19.00 and gave the company a “neutral” rating in a research note on Monday, August 13th. Stephens reaffirmed a “hold” rating and issued a $19.00 price objective on shares of FreightCar America in a research note on Thursday, August 2nd. Finally, ValuEngine raised FreightCar America from a “hold” rating to a “buy” rating in a research note on Tuesday, July 10th. Eight investment analysts have rated the stock with a hold rating, FreightCar America currently has a consensus rating of “Hold” and a consensus target price of $18.00.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. increased its stake in FreightCar America by 1.6% in the 2nd quarter. BlackRock Inc. now owns 841,249 shares of the transportation company’s stock valued at $14,125,000 after purchasing an additional 13,008 shares in the last quarter. Royce & Associates LP increased its position in FreightCar America by 15.0% during the second quarter. Royce & Associates LP now owns 1,460,910 shares of the transportation company’s stock worth $24,529,000 after buying an additional 190,689 shares in the last quarter. Wells Fargo & Company MN increased its position in FreightCar America by 4.1% during the second quarter. Wells Fargo & Company MN now owns 760,776 shares of the transportation company’s stock worth $12,783,000 after buying an additional 30,042 shares in the last quarter. JPMorgan Chase & Co. increased its position in FreightCar America by 109.5% during the first quarter. JPMorgan Chase & Co. now owns 109,421 shares of the transportation company’s stock worth $1,466,000 after buying an additional 57,198 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in FreightCar America by 4.6% during the second quarter. Russell Investments Group Ltd. now owns 1,485,733 shares of the transportation company’s stock worth $24,937,000 after buying an additional 65,922 shares in the last quarter. 84.82% of the stock is owned by hedge funds and other institutional investors.

The stock has a market capitalization of $184.21 million, a price-to-earnings ratio of -9.31 and a beta of 1.53.

FreightCar America Company Profile (NASDAQ:RAIL)

FreightCar America, Inc, through its subsidiaries, designs, manufactures, and sells railcars for the transportation of bulk commodities and containerized freight products primarily in North America. The company offers a range of freight cars, including open top hoppers, covered hoppers, and gondolas; intermodal flats, such as well cars; and non-intermodal flat cars comprising slab, hot slab, ribbon rail, and bulkhead flats.

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