CF Industries (NYSE:CF) to Buyback $2.00 billion in Stock

CF Industries (NYSE:CF) declared that its board has authorized a stock buyback plan on Wednesday, May 7th, RTT News reports. The company plans to buyback $2.00 billion in shares. This buyback authorization allows the basic materials company to buy up to 14.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

CF Industries Stock Down 1.8 %

Shares of CF stock opened at $80.52 on Thursday. CF Industries has a one year low of $67.34 and a one year high of $98.25. The company has a debt-to-equity ratio of 0.39, a current ratio of 3.08 and a quick ratio of 2.52. The stock has a fifty day moving average price of $76.25 and a 200 day moving average price of $83.26. The stock has a market cap of $13.65 billion, a P/E ratio of 11.89, a price-to-earnings-growth ratio of 0.37 and a beta of 0.94.

CF Industries (NYSE:CF) last posted its quarterly earnings results on Wednesday, May 7th. The basic materials company reported $1.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.53 by $0.32. CF Industries had a net margin of 20.52% and a return on equity of 15.50%. CF Industries’s revenue for the quarter was up 13.1% on a year-over-year basis. During the same period last year, the firm earned $1.03 earnings per share. Analysts predict that CF Industries will post 5.83 earnings per share for the current year.

CF Industries Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 30th. Shareholders of record on Thursday, May 15th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 2.48%. The ex-dividend date is Thursday, May 15th. CF Industries’s dividend payout ratio (DPR) is 29.54%.

Analyst Ratings Changes

Several analysts recently commented on the stock. Barclays cut their target price on shares of CF Industries from $95.00 to $87.00 and set an “equal weight” rating for the company in a research note on Tuesday, April 22nd. BNP Paribas upgraded CF Industries to a “strong-buy” rating in a report on Wednesday, April 9th. Piper Sandler upped their target price on CF Industries from $105.00 to $115.00 and gave the company an “overweight” rating in a report on Monday, January 27th. UBS Group cut their price objective on CF Industries from $90.00 to $79.00 and set a “neutral” rating on the stock in a report on Wednesday, April 16th. Finally, Morgan Stanley reduced their price target on shares of CF Industries from $85.00 to $80.00 and set an “equal weight” rating for the company in a research report on Friday, April 11th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating, three have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $89.29.

About CF Industries

CF Industries Holdings, Inc, together with its subsidiaries, engages in the manufacture and sale of hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities in North America, Europe, and internationally. It operates through Ammonia, Granular Urea, UAN, AN, and Other segments.