Zacks Investment Research Lowers FreightCar America (NASDAQ:RAIL) to Hold

FreightCar America (NASDAQ:RAILGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports.

According to Zacks, “FreightCar America, Inc. manufactures railroad freight cars, with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has manufacturing facilities in Danville, Illinois, Roanoke, Virginia and Johnstown, Pennsylvania. “

Separately, StockNews.com cut shares of FreightCar America from a “hold” rating to a “sell” rating in a report on Friday.

Shares of NASDAQ RAIL traded up $0.10 during midday trading on Tuesday, reaching $4.36. The company had a trading volume of 468 shares, compared to its average volume of 267,397. The business’s 50-day simple moving average is $5.17 and its 200 day simple moving average is $4.36. The stock has a market cap of $72.07 million, a P/E ratio of -3.79 and a beta of 2.23. FreightCar America has a 1 year low of $3.06 and a 1 year high of $7.69.

FreightCar America (NASDAQ:RAILGet Rating) last posted its quarterly earnings results on Tuesday, May 10th. The transportation company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.14). The company had revenue of $93.24 million during the quarter. FreightCar America had a negative return on equity of 3,048.14% and a negative net margin of 10.05%. During the same period in the prior year, the company posted ($0.48) earnings per share. Equities analysts expect that FreightCar America will post -0.27 EPS for the current year.

In related news, major shareholder Benavides Alejandro Gil bought 47,090 shares of the company’s stock in a transaction dated Wednesday, May 11th. The shares were acquired at an average price of $3.70 per share, for a total transaction of $174,233.00. Following the completion of the transaction, the insider now directly owns 127,000 shares in the company, valued at $469,900. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider W Matthew Tonn bought 9,850 shares of the company’s stock in a transaction dated Wednesday, May 11th. The stock was bought at an average price of $3.48 per share, for a total transaction of $34,278.00. Following the transaction, the insider now owns 176,575 shares of the company’s stock, valued at $614,481. The disclosure for this purchase can be found here. Insiders acquired 81,940 shares of company stock valued at $299,511 in the last ninety days. 15.52% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Morgan Stanley boosted its position in FreightCar America by 246.1% during the first quarter. Morgan Stanley now owns 8,974 shares of the transportation company’s stock worth $59,000 after acquiring an additional 6,381 shares during the last quarter. Wells Fargo & Company MN boosted its holdings in FreightCar America by 293.7% in the 2nd quarter. Wells Fargo & Company MN now owns 8,779 shares of the transportation company’s stock valued at $52,000 after purchasing an additional 6,549 shares during the last quarter. Allianz Asset Management GmbH acquired a new position in FreightCar America in the 3rd quarter valued at about $841,000. Geode Capital Management LLC boosted its holdings in FreightCar America by 30.0% in the 3rd quarter. Geode Capital Management LLC now owns 132,860 shares of the transportation company’s stock valued at $601,000 after purchasing an additional 30,664 shares during the last quarter. Finally, Jump Financial LLC acquired a new position in FreightCar America in the 3rd quarter valued at about $91,000. Institutional investors and hedge funds own 86.59% of the company’s stock.

FreightCar America Company Profile (Get Rating)

FreightCar America, Inc, through its subsidiaries, designs, manufactures, and sells railcars and railcar components for the transportation of bulk commodities and containerized freight products primarily in North America. It operates in two segments, Manufacturing and Parts. The company offers a range of freight cars, including open top hoppers; covered hopper cars; gondolas; triple hoppers and hybrid aluminum/stainless steel railcars; ore hopper and gondola railcars; ballast hopper cars; aggregate hopper cars; intermodal flats; and non-intermodal flat cars.

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