American Axle & Manufacturing Holdings, Inc. (NYSE:AXL)’s Volatility Moves the Target Weight to 0.02570 With 0.71989 Profit Growth

In deep diving into the profits for American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) we can see that the trailing 12 months net profit growth stands at 0.71989.  

The calculation for this number is as follows: 1yr Growth Net Profit = 1 year percentage growth in Net Profit After Tax. Net profit is also referred to as the bottom line.  This is one of the most closely followed ratios in terms of company financials for investors.  Net profit growth is one of the main drivers of a firm’s share price.

Investors may be thinking about how to best approach the markets at present levels. Many investors may feel like they have missed the boat during the bull run. It may be a case of missed trades or being too conservative, but a well-planned forward thinking strategy may be just what is needed to get back on the right path. Studying various sectors may help offer some guidance on where to go from here. Investors may become very familiar and comfortable with a specific sector, and they may be losing out on opportunities from other quickly growing sectors. Investors may also need to take a long-term approach which may include creating a diversified portfolio that takes many different aspects into consideration. With the large amount of uncertainty that follows the global investing world on a daily basis, it may be useful for investors to be able to keep their emotions out of play. 

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) shares currently have a 125/250 day adjusted slope average of 10.49686. The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2). This indicator is useful in helping find shares that have been on a consistent upward direction over the past six months to a year. Generally speaking, the higher the 125/250 value the better as this would indicate a consistent increase closely correlates to the actual stock price.

Investors might be looking to sharpen the gaze and focus on recent market action. As we move into the second part of the year, everyone will be watching to see which way the stock market momentum shifts. Many believe that the bulls are still charging while others feel like the bears may be waiting in the wings.  There are various schools of thought when it comes to trading stocks. Investors may have to first asses their appetite for risk in order to start creating a solid investment plan. 

Shares of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) are showing an adjusted slope average of the past 125 and 250 days of 10.49686. The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2). The purpose of this calculation is to provide a longer term average adjusted slope value that evens out large stock price movements by using the average. This indicator is useful in helping find stocks that have been on a smooth upward trend over the past 6 months to a year.

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) of the Automobiles & Parts sector closed the recent session at 16.140000 with a market value of $1802611.

Debt

In looking at some Debt ratios, American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) has a debt to equity ratio of 2.21415 and a Free Cash Flow to Debt ratio of 0.025037. This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at 4.61189. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. American Axle & Manufacturing Holdings, Inc.’s ND to MV current stands at 1.971030. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investor Target Weight

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) has a current suggested portfolio rate of 0.02570 (as a decimal) ownership. Target weight is the volatility adjusted recommended position size for a stock in your portfolio. The maximum target weight is 7% for any given stock. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. The more recent volatility of a stock, the lower the target weight will be. The 3-month volatility stands at 36.995500 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.

50/200 Simple Moving Average Cross

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) has a 1.07077 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

Investing in the stock market will always involve some level of risk. Investors often have to determine how much they are willing to risk, and try to project what the potential reward could be. Taking on too much risk may put the average investor out of their comfort zone. Finding that sweet spot for risk appetite may help investors get on the correct path to conquering the markets. As companies continue to report quarterly earnings, investors will be watching which companies post larger than expected surprises. Analysts will also be watching the numbers closely in order to make sense of the results and update estimates accordingly.