Traders Purchase Large Volume of CF Industries Call Options (NYSE:CF)

CF Industries Holdings, Inc. (NYSE:CF) saw some unusual options trading activity on Thursday. Investors bought 8,741 call options on the stock. This represents an increase of 37% compared to the typical daily volume of 6,360 call options.

CF Industries Stock Up 3.3%

Shares of NYSE:CF opened at $132.29 on Friday. The stock has a market cap of $20.32 billion, a P/E ratio of 14.70 and a beta of 0.68. The firm has a fifty day moving average price of $103.63 and a 200 day moving average price of $90.07. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.37 and a quick ratio of 2.93. CF Industries has a 1-year low of $67.34 and a 1-year high of $137.44.

CF Industries (NYSE:CF) last posted its quarterly earnings data on Wednesday, February 18th. The basic materials company reported $2.59 EPS for the quarter, beating analysts’ consensus estimates of $2.53 by $0.06. CF Industries had a net margin of 20.54% and a return on equity of 19.84%. The company had revenue of $1.87 billion for the quarter, compared to analyst estimates of $1.78 billion. During the same period in the previous year, the business posted $1.89 earnings per share. CF Industries’s quarterly revenue was up 22.8% on a year-over-year basis. Sell-side analysts predict that CF Industries will post 5.83 EPS for the current year.

CF Industries Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 13th were issued a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.5%. CF Industries’s dividend payout ratio (DPR) is currently 22.22%.

Key Headlines Impacting CF Industries

Here are the key news stories impacting CF Industries this week:

• Positive Sentiment: UBS raised its price target on CF to $140 (from $97), highlighting that urea prices are up ~77% and arguing the market hasn’t fully priced that in — this is the main catalyst behind today’s buying. UBS Lifts CF Industries to $140 Price Target: Urea Prices Are Up 77% and the Market Hasn’t Caught On
• Positive Sentiment: Unusually high options activity: ~8,741 call contracts traded today (about 37% above typical daily call volume), indicating speculative or hedged bullish positioning from investors and traders. (No link available)
• Positive Sentiment: Bank of America raised its CF price target to $103 from $86 — another analyst upgrade that supports the view of improving fundamentals in the fertilizer market. BofA raises its price target on CF Industries Holdings (CF) to $103 from $86
• Neutral Sentiment: Coverage note reporting the UBS change also frames UBS’s rating as “neutral” with an implied ~5.8% upside from the then-current market level — suggests UBS sees upside but is not assigning a buy rating. Benzinga coverage of UBS price target change

Wall Street Analysts Forecast Growth

CF has been the subject of a number of research reports. Zacks Research cut shares of CF Industries from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 10th. Barclays raised their price objective on CF Industries from $100.00 to $120.00 and gave the stock an “overweight” rating in a report on Tuesday, March 3rd. BMO Capital Markets lifted their target price on CF Industries from $115.00 to $140.00 and gave the stock an “outperform” rating in a research report on Wednesday, March 18th. Royal Bank Of Canada boosted their target price on CF Industries from $95.00 to $100.00 and gave the company a “sector perform” rating in a report on Monday, February 23rd. Finally, Scotiabank upped their target price on CF Industries from $82.00 to $85.00 and gave the company a “sector perform” rating in a research report on Monday, February 23rd. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, CF Industries has an average rating of “Hold” and a consensus target price of $104.60.

Insider Activity at CF Industries

In other CF Industries news, SVP Michael Patrick Mcgrane sold 3,666 shares of the firm’s stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $116.50, for a total transaction of $427,089.00. Following the sale, the senior vice president owned 19,161 shares of the company’s stock, valued at approximately $2,232,256.50. This trade represents a 16.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Susan L. Menzel sold 18,041 shares of the business’s stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $136.06, for a total transaction of $2,454,658.46. Following the sale, the executive vice president owned 55,762 shares of the company’s stock, valued at $7,586,977.72. This represents a 24.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 82,408 shares of company stock valued at $9,971,298. Company insiders own 0.42% of the company’s stock.

Institutional Trading of CF Industries

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Harbor Capital Advisors Inc. lifted its position in CF Industries by 78.0% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 292 shares of the basic materials company’s stock worth $26,000 after acquiring an additional 128 shares during the period. True Wealth Design LLC increased its holdings in shares of CF Industries by 396.2% in the third quarter. True Wealth Design LLC now owns 387 shares of the basic materials company’s stock valued at $35,000 after purchasing an additional 309 shares during the period. Eastern Bank purchased a new stake in shares of CF Industries during the third quarter worth approximately $35,000. Hantz Financial Services Inc. raised its stake in shares of CF Industries by 46.3% during the fourth quarter. Hantz Financial Services Inc. now owns 493 shares of the basic materials company’s stock worth $38,000 after purchasing an additional 156 shares during the last quarter. Finally, Peterson Wealth Services lifted its holdings in shares of CF Industries by 451.3% during the third quarter. Peterson Wealth Services now owns 441 shares of the basic materials company’s stock worth $40,000 after purchasing an additional 361 shares during the period. 93.06% of the stock is owned by hedge funds and other institutional investors.

About CF Industries

CF Industries Holdings, Inc is a leading global manufacturer of hydrogen and nitrogen products for agricultural and industrial customers. The company specializes in the production of ammonia, granular urea, urea ammonium nitrate (UAN), nitric acid and ammonium nitrate, which serve as key inputs for fertilizer blends, industrial chemicals and other downstream applications.

Headquartered in Deerfield, Illinois, CF Industries operates production facilities and distribution terminals across North America and the United Kingdom.