Bank of New York Mellon Reduces Stake in Ford Motor as Institutional Investors Adjust Positions
Ford Motor (NYSE: F) saw a shift in institutional holdings as Bank of New York Mellon Corp trimmed its position in the automaker’s stock by 5.3% in the fourth quarter. According to its recent SEC filing, the firm sold 1,239,846 shares, bringing its total holdings to 22,286,509 shares valued at approximately $220.6 million. This move reflects a broader trend among institutional investors adjusting their stakes in Ford Motor.
Institutional Activity and Market Performance
In addition to Bank of New York Mellon’s transaction, several other institutional investors made changes to their Ford holdings:
- Hager Investment Management Services LLC acquired a new position worth around $26,000.
- Bank of Jackson Hole Trust initiated a stake worth $29,000.
- Reston Wealth Management LLC invested $33,000 in the third quarter.
- Kentucky Trust Co entered Ford Motor with a $31,000 position.
- Access Investment Management LLC secured shares worth $34,000.
As a result, institutional investors collectively own 58.74% of Ford Motor’s stock, signaling ongoing interest in the automaker despite recent volatility.
Stock Performance Overview
Ford Motor’s stock traded at $9.39 on Monday, reflecting a $0.16 decline. The trading volume stood at 147 million shares, significantly exceeding its average daily volume of 78 million shares. With a market capitalization of $37.22 billion, Ford’s stock maintains a price-to-earnings (P/E) ratio of 6.43 and a PEG ratio of 0.61, indicating relative undervaluation. The company has a beta of 1.63, showing its stock is more volatile than the broader market.
Key financial ratios include:
- Quick Ratio: 1.02
- Current Ratio: 1.16
- Debt-to-Equity Ratio: 2.31
Ford’s stock has fluctuated between a 12-month low of $9.10 and a high of $14.85, with a 50-day moving average of $9.77 and a 200-day moving average of $10.42.
Earnings and Dividend Update
Ford’s recent earnings report on February 5th exceeded expectations, with earnings per share (EPS) of $0.39, beating the $0.35 consensus estimate. The company posted a return on equity of 16.88% and a net margin of 3.18%, highlighting its profitability despite challenges in the auto sector.
The automaker also announced a quarterly dividend of $0.15 per share, payable on March 3rd, with an ex-dividend date of February 18th. This translates to an annualized dividend of $0.60 per share and a yield of 6.39%, making Ford an attractive pick for income-focused investors. The company’s dividend payout ratio currently stands at 41.10%.
Analyst Ratings and Price Target Revisions
Wall Street analysts have issued mixed ratings for Ford Motor:
- Wolfe Research reaffirmed an “Underperform” rating.
- BNP Paribas upgraded Ford to a “Hold” rating.
- Sanford C. Bernstein downgraded the stock from “Outperform” to “Market Perform” with an $11.00 price target.
- Royal Bank of Canada reduced its target price from $10.00 to $9.00, maintaining a “Sector Perform” rating.
- JPMorgan Chase & Co. lowered its price target from $14.00 to $13.00 but retained an “Overweight” rating.
Out of 17 analysts covering Ford Motor, three rate it as a Sell, ten as a Hold, and four as a Buy. The average price target stands at $11.89, suggesting moderate upside potential from current levels.
Key Takeaways for Investors
Ford Motor remains a widely held stock among institutional investors, even as some firms adjust their positions. The company’s strong dividend yield, profitability, and relatively low valuation make it appealing to income investors, while its stock performance and analyst ratings suggest mixed expectations for future growth. As Ford navigates industry challenges, investors will closely watch its financial health and strategic direction in the coming quarters.
