Ford Motor Company (NYSE: F) shares dipped 0.3% during mid-day trading on Tuesday, closing at $10.22, down from the previous session’s $10.25. The stock traded as low as $10.19 before slightly recovering. Volume plunged by 69% from the average session, with only 19.56 million shares exchanging hands compared to the 62.23 million average.
Analyst Downgrades and Target Cuts Weigh on Sentiment
Wall Street analysts have grown increasingly bearish on Ford, citing rising competition, margin pressures, and weak global sales. Several firms recently slashed their price targets:
- Wolfe Research reiterated an “underperform” rating.
- Wells Fargo & Company downgraded its target from $9.00 to $8.00, maintaining an “underweight” stance.
- Jefferies Financial Group lowered its rating from “hold” to “underperform”, reducing its target price from $12.00 to $9.00.
- Royal Bank of Canada dropped its price objective from $10.00 to $9.00, assigning a “sector perform” rating.
- Barclays downgraded Ford from “overweight” to “equal weight”, cutting its target from $13.00 to $11.00.
Overall, three analysts have rated the stock as a sell, eleven as hold, and four as buy, according to MarketBeat.com. The average target price now stands at $11.50.
Financials and Valuation Metrics
Ford’s market capitalization currently sits at $40.57 billion, with a P/E ratio of 7.00, a P/E/G ratio of 0.61, and a beta of 1.59, indicating slightly above-average volatility. The stock’s 50-day moving average is $9.75, while the 200-day moving average is $10.29.
Dividend and Institutional Activity
Ford recently paid a quarterly dividend of $0.15 per share on March 3, representing an annualized yield of 5.86%. The company’s dividend payout ratio (DPR) currently stands at 41.1%, signaling a relatively stable payout despite recent profitability concerns.
Institutional investors have been actively adjusting their positions:
- Vanguard Group Inc. increased its holdings by 16.6% in Q4, now owning 402.08 million shares worth $3.98 billion.
- Charles Schwab Investment Management grew its position by 5.3%, acquiring an additional 6.49 million shares.
- Geode Capital Management LLC raised its stake by 2.5%, while Dimensional Fund Advisors added 4.92 million shares, a 11.8% increase.
- Norges Bank purchased a new position in Q4, valued at approximately $387.3 million.
Overall, institutional investors now own 58.74% of Ford’s outstanding shares, indicating strong market interest despite the current headwinds.
Outlook: Cautious Optimism or Further Decline?
With weaker-than-average trading volume, mounting analyst downgrades, and reduced price targets, Ford stock faces near-term pressure. However, its dividend yield remains attractive for income-focused investors, offering some support.
Looking ahead, Ford’s ability to navigate EV competition, margin pressures, and potential tariff changes will be key to its stock performance in the coming months.
