Ford Motor Company (NYSE:F) is navigating a turbulent market landscape, as evidenced by recent changes in institutional investor holdings and fluctuating stock performance. According to the latest Form 13F filing with the Securities and Exchange Commission, Peapack Gladstone Financial Corp has reduced its stake in Ford by 10.4% during the fourth quarter, selling 27,611 shares to hold a total of 239,103 shares valued at approximately $2.37 million.
This reduction in holdings comes amid a broader trend of institutional investors reassessing their positions in Ford. Vanguard Group Inc., one of the largest asset management firms, increased its stake in Ford by 16.6%, acquiring an additional 57,182,803 shares to bring its total ownership to over 402 million shares, valued at nearly $3.98 billion. Other notable investors include Norges Bank, which established a new stake worth approximately $387 million, and Charles Schwab Investment Management, which raised its position by 5.3%, now holding over 129 million shares valued at $1.28 billion.
Despite these mixed signals from institutional investors, Ford’s stock has faced significant pressure. On Tuesday, shares of Ford traded down 6.1%, closing at $8.68. The stock has seen considerable volatility, with a 12-month low of $8.56 and a high of $14.85. The company currently has a market capitalization of $34.38 billion and a price-to-earnings ratio of 5.94, indicating that the stock may be undervalued compared to its earnings potential.
Wall Street analysts have also weighed in on Ford’s prospects, with a consensus rating of “Hold” and an average price target of $11.37. Recent reports from various research firms have resulted in mixed ratings. BNP Paribas upgraded Ford to a “Hold” rating, while Wells Fargo lowered its price target from $9.00 to $8.00, assigning an “underweight” rating. JPMorgan Chase & Co. reduced its price target from $13.00 to $11.00, maintaining an “overweight” rating, while Piper Sandler and Evercore ISI also adjusted their targets downward.
Ford’s financial performance has shown some resilience, as evidenced by its recent quarterly earnings report. The company reported earnings per share of $0.39, surpassing analysts’ expectations of $0.35. Ford’s net margin stands at 3.18%, with a return on equity of 16.88%. Analysts forecast that Ford will post an EPS of 1.47 for the current fiscal year, indicating potential for growth despite current market challenges.
In addition to its stock performance, Ford recently declared a quarterly dividend of $0.15, which was paid on March 3rd. This dividend represents an annualized yield of 6.92%, reflecting the company’s commitment to returning value to shareholders. The payout ratio stands at 41.10%, suggesting that Ford is managing its earnings effectively while still rewarding investors.
As Ford navigates these market challenges, the actions of institutional investors and analysts will be crucial in shaping the company’s future. With a mix of increased and decreased holdings, along with fluctuating stock prices, investors will need to stay informed about Ford’s performance and market conditions. The automotive giant’s ability to adapt to changing market dynamics will ultimately determine its success in the coming quarters.
