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American Axle (NYSE:AXL) & Manufacturing Holdings Inc. (AXL) stock has hit a 52-week low, dropping to $3.00, as the company faces a tough market environment. This new low reflects a significant decline over the past year, with the stock experiencing a 1-year change of -56.8%. Despite these challenges, the company maintains a healthy current ratio of 1.63 and generated $204.3 million in levered free cash flow over the last twelve months. Investors are closely monitoring the automotive supplier’s performance, considering the broader industry’s headwinds and the company’s efforts to navigate through these challenges. The 52-week low serves as a critical point for the company, marking a phase of heightened investor scrutiny and potential reassessment of the stock’s value in the current market. InvestingPro subscribers have access to 10 additional key insights and a comprehensive analysis of AXL’s financial health and market position.
In other recent news, American Axle & Manufacturing (AAM) reported its fourth-quarter 2024 earnings, showcasing a better-than-expected performance. The company posted an adjusted earnings per share (EPS) loss of -$0.06, surpassing the anticipated -$0.12, although revenue slightly missed forecasts at $1.38 billion compared to the expected $1.39 billion. Full-year sales reached $6.1 billion, with an adjusted EBITDA of $749 million, representing 12.2% of sales. In a significant development, American Axle also announced progress in its acquisition of Dowlais Group plc, with the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, moving the companies closer to finalizing the transaction.
The merger aims to enhance American Axle’s global capabilities, combining its expertise in driveline systems with Dowlais’s complementary strengths. Additionally, the company appointed Terry Grayson-Caprio to its Board of Directors, bringing her extensive financial and business strategy expertise to the team. Grayson-Caprio’s background includes a tenure at KPMG LLP and experience in industrial and consumer markets, which is expected to bolster American Axle’s board. These recent developments reflect American Axle’s strategic focus on innovation, sustainability, and expansion in the evolving automotive industry.
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