Ford Motor (NYSE:F) is once again in the spotlight as institutional investors reevaluate their positions in the auto giant. Avantax Advisory Services Inc. recently reduced its stake in Ford by 14% in the fourth quarter, selling 37,917 shares and bringing its total holdings down to 233,546 shares. According to its latest SEC filing, Avantax’s Ford holdings are now valued at $2.31 million.
Institutional Activity in Ford Motor
While Avantax trimmed its position, other institutional investors have adjusted their exposure to Ford as well. Franklin Resources Inc. increased its Ford holdings by 29.8% in Q3 2024, acquiring an additional 336,720 shares and bringing its total stake to 1.46 million shares worth nearly $16 million. Similarly, NCP Inc. boosted its holdings by 62% in Q4, raising its ownership to 74,520 shares. On the other hand, Worldquant Millennium Advisors LLC initiated a significant position in Ford, investing $55.46 million.
Alberta Investment Management Corp showed confidence in Ford, increasing its holdings by 87.1% in Q4 to 196,100 shares, valued at $1.94 million. Collectively, hedge funds and institutional investors now own 58.74% of Ford’s stock, indicating a strong presence of large investors in the company despite market challenges.
Ford Stock Performance and Market Trends
As of Monday, Ford stock opened at $9.73, trading closer to its 12-month low of $9.06 rather than its high of $14.85. The automaker’s stock has been under pressure, reflected in its 50-day moving average of $9.71 and a 200-day moving average of $10.33. Ford maintains a market capitalization of $38.54 billion, with a P/E ratio of 6.66, a PEG ratio of 0.61, and a beta of 1.59, signaling moderate volatility.
The company’s fundamentals show a current ratio of 1.16, a quick ratio of 1.02, and a debt-to-equity ratio of 2.31, underlining Ford’s leverage in its operational strategy. With a net margin of 3.18% and a return on equity of 16.88%, the company’s financial health remains stable despite market headwinds.
Earnings Overview & Dividend Payout
In its most recent earnings report, Ford posted Q4 2024 earnings of $0.39 per share, surpassing analysts’ expectations of $0.35 by $0.04. Analysts forecast Ford to report an EPS of 1.47 for the full year, suggesting steady profitability.
Ford also continues to reward its investors with strong dividends. The company recently declared a quarterly dividend of $0.15 per share, translating to an annualized yield of 6.17%. With a dividend payout ratio of 41.10%, Ford remains committed to returning value to shareholders despite industry uncertainties.
Analyst Ratings and Price Targets
Ford Motor has been a subject of mixed ratings from Wall Street analysts. BNP Paribas recently upgraded the stock to a “hold” rating. Meanwhile, Jefferies Financial Group downgraded Ford from “hold” to “underperform,” slashing its price target from $12.00 to $9.00. Wolfe Research also maintained an “underperform” rating, citing broader automotive sector risks.
Evercore ISI adjusted its target price downward from $11.00 to $10.00, while JPMorgan Chase & Co. lowered its target from $14.00 to $13.00 but maintained an “overweight” rating, signaling long-term confidence in Ford’s potential.
Final Thoughts
Ford Motor continues to navigate a challenging economic environment, marked by inflation, interest rate pressures, and shifting investor sentiment. While institutional investors have taken mixed approaches, Ford’s solid fundamentals, strong dividend yield, and long-term growth potential keep it on the radar of Wall Street analysts and investors alike.
