Ford Motor (NYSE: F) has been navigating a volatile market as institutional investors, including the Swiss National Bank, make strategic adjustments to their holdings. According to a recent 13F filing with the U.S. Securities and Exchange Commission (SEC), the Swiss National Bank trimmed its stake in Ford by 5.2% during the fourth quarter of 2024. The sale of 610,000 shares brought its total holdings to 11,029,886 shares, valued at approximately $109.2 million.
Institutional Investors Adjust Their Positions
The Swiss National Bank’s decision to reduce its position is not isolated. Several other institutional investors have also made changes:
- Hager Investment Management Services LLC entered a new position in Ford during Q4, worth $26,000.
- Bank of Jackson Hole Trust and Kentucky Trust Co each purchased new stakes valued at $29,000 and $31,000, respectively.
- Crewe Advisors LLC significantly increased its holdings by 169.9%, acquiring 3,285 shares worth $33,000.
- Modus Advisors LLC also added Ford shares, investing approximately $34,000. Currently, 58.74% of Ford’s stock is held by hedge funds and institutional investors, underscoring the broad market interest in the automaker’s performance.
Ford Motor’s Stock Performance and Valuation Metrics
Ford’s shares opened at $9.73 on Friday, reflecting its ongoing market fluctuations. The company maintains a debt-to-equity ratio of 2.31, a quick ratio of 1.02, and a current ratio of 1.16. With a market capitalization of $38.54 billion, the stock’s valuation includes:
- Price-to-earnings (P/E) ratio of 6.66
- Price-to-earnings-growth (PEG) ratio of 0.61
- Beta of 1.59, indicating a higher-than-average market volatility
Over the past year, Ford’s stock has ranged between a low of $9.06 and a high of $14.85. The 50-day moving average stands at $9.71, while the 200-day moving average is slightly higher at $10.34, suggesting a downward trend in recent months.
Ford Motor’s Q4 2024 Earnings Beat Expectations
In its latest earnings report released on February 5th, Ford posted an earnings per share (EPS) of $0.39, surpassing analyst estimates of $0.35. The company demonstrated solid financials with a return on equity of 16.88% and a net margin of 3.18%. Analysts anticipate Ford to report an EPS of 1.47 for the fiscal year.
Dividend Stability and Yield Attract Investors
Ford continues to be an attractive stock for income-focused investors. The company recently announced a quarterly dividend of $0.15 per share, which was paid out on March 3rd. This translates to an annual dividend of $0.60 per share, offering a robust yield of 6.17%. The payout ratio stands at 41.10%, indicating a sustainable dividend policy despite market challenges.
Analyst Ratings and Price Target Adjustments
Wall Street analysts have been reevaluating their price targets on Ford stock in light of market conditions and company performance:
- TD Cowen: Initiated coverage with a “Hold” rating and a $10.00 price target.
- Evercore ISI: Lowered its price target from $11.00 to $10.00, maintaining an “In-line” rating.
- Barclays: Downgraded Ford from “Overweight” to “Equal Weight” and reduced the price target from $13.00 to $11.00.
- Wells Fargo & Company: Set an “Underweight” rating, cutting the target from $9.00 to $8.00.
- Wolfe Research: Maintained an “Underperform” rating.
With three analysts rating the stock as a sell, eleven maintaining a hold, and four issuing a buy recommendation, the consensus rating for Ford remains at “Hold” with a median price target of $11.77.
Market Outlook and Investor Sentiment
Ford’s stock faces a complex mix of institutional movements, valuation adjustments, and analyst opinions. While the company maintains strong fundamentals, including positive earnings surprises and a stable dividend yield, external factors such as macroeconomic conditions and shifting consumer demand in the automotive sector continue to influence its stock performance.
With a mix of cautious optimism and strategic positioning from institutional investors, Ford Motor remains a focal point for market watchers in 2025.
