Ford Motor Company (NYSE:F) experienced a slight decline of 0.4% in its stock price on Friday, closing at $9.51 after trading as low as $9.20. The trading volume for the day reached approximately 45.8 million shares, marking a significant 31% decrease from the average daily volume of 66.5 million shares. This decline follows a previous closing price of $9.54, indicating a period of volatility for the automotive giant.
Recent analyst reports have brought attention to Ford’s stock, with several firms adjusting their target prices and ratings. Notably, Wells Fargo & Company downgraded Ford’s target price from $9.00 to $8.00, assigning an “underweight” rating in a research report released on February 6. Conversely, BNP Paribas upgraded Ford to a “hold” rating on February 10, reflecting a more optimistic outlook. Piper Sandler also revised its price objective, lowering it from $13.00 to $9.00 while maintaining a “neutral” rating. Evercore ISI followed suit, cutting its target price from $11.00 to $10.00 and labeling the stock as “in-line.”
Jefferies Financial Group took a more critical stance, downgrading Ford from a “hold” to an “underperform” rating and reducing its price target from $12.00 to $9.00. The mixed reviews from analysts highlight the uncertainty surrounding Ford’s future performance. Currently, three analysts have rated the stock as a sell, eleven have given it a hold rating, and four have assigned a buy rating. According to MarketBeat, the consensus rating for Ford is “Hold,” with an average target price of $11.37.
In terms of financial performance, Ford has shown resilience. The company recently reported its quarterly earnings on February 5, revealing earnings per share (EPS) of $0.39, surpassing the consensus estimate of $0.35 by $0.04. Ford’s net margin stands at 3.18%, with a return on equity of 16.88%. Analysts predict that Ford will post an EPS of 1.47 for the current fiscal year, indicating potential growth despite the current market challenges.
Ford’s financial health is further underscored by its dividend declaration. The company announced a quarterly dividend of $0.15, which was paid on March 3 to stockholders of record as of February 18. This translates to an annualized dividend of $0.60, yielding an attractive 6.50%. The ex-dividend date was also February 18, and Ford’s dividend payout ratio currently stands at 41.10%, suggesting a commitment to returning value to shareholders.
Institutional investors and hedge funds have also been active in modifying their holdings in Ford. Albion Financial Group UT increased its stake by 38.5% during the fourth quarter, now owning 3,600 shares valued at $36,000. Brighton Jones LLC and Angeles Wealth Management LLC also raised their positions, reflecting growing interest in the company. Currently, institutional investors and hedge funds hold approximately 58.74% of Ford’s stock.
As Ford navigates through a challenging market landscape, the mixed analyst ratings and recent financial performance will be crucial in determining its trajectory. Investors will be keenly watching for further developments, particularly in light of the ongoing shifts in the automotive industry and consumer preferences. With a blend of cautious optimism and critical assessments from analysts, Ford’s future remains a topic of significant interest in the financial community.
