Shares of Ford Motor Company (NYSE: F) experienced a slight decline of 0.4% during mid-day trading on Friday, with the stock trading as low as $9.20 before settling at $9.51. This drop comes as approximately 45,786,127 shares changed hands, marking a 31% decrease from the average daily trading volume of 66,498,548 shares. The stock had previously closed at $9.54, reflecting ongoing volatility in the automotive sector.
Recent analyst activity has contributed to the fluctuations in Ford’s stock price. Bank of America recently lowered its price target for Ford from $19.00 to $15.50 while maintaining a “buy” rating. This adjustment indicates a cautious optimism about the company’s future performance, despite the current market conditions. Similarly, Evercore ISI revised its price objective down from $11.00 to $10.00, assigning an “in-line” rating to the stock. TD Cowen also initiated coverage on Ford, issuing a “hold” rating with a target price of $10.00.
On the other hand, Wells Fargo & Company took a more pessimistic view, reducing its price target from $9.00 to $8.00 and assigning an “underweight” rating. Wolfe Research reaffirmed an “underperform” rating, reflecting a more cautious stance on the company’s prospects. Overall, the consensus among analysts is mixed, with three analysts rating the stock as a sell, eleven issuing hold ratings, and four giving it a buy rating. According to MarketBeat data, Ford currently holds an average rating of “Hold” with a consensus price target of $11.37.
Ford’s market capitalization stands at approximately $37.95 billion, with a price-to-earnings (P/E) ratio of 6.56 and a price-to-earnings-growth (PEG) ratio of 0.61. The company’s beta of 1.59 indicates a higher level of volatility compared to the broader market. Ford’s financial health is reflected in its quick ratio of 1.02 and a current ratio of 1.16, although its debt-to-equity ratio of 2.31 raises some concerns about leverage.
In its most recent earnings report, released on February 5, Ford reported earnings per share (EPS) of $0.39, surpassing analysts’ expectations of $0.35 by $0.04. The company achieved a net margin of 3.18% and a return on equity of 16.88%. Looking ahead, sell-side analysts anticipate that Ford will post an EPS of 1.47 for the current year, suggesting a potential rebound in profitability.
In addition to its stock performance, Ford recently announced a quarterly dividend of $0.15 per share, which was paid on March 3. Shareholders of record on February 18 received this dividend, representing an annualized payout of $0.60 and a yield of 6.27%. The company’s dividend payout ratio currently stands at 41.10%, indicating a commitment to returning value to shareholders.
Hedge funds have also been active in the Ford market, with several institutions recently acquiring shares. Hager Investment Management Services LLC, Bank of Jackson Hole Trust, Flagship Wealth Advisors LLC, Kentucky Trust Co, and Spurstone Advisory Services LLC all purchased new stakes in Ford during the fourth quarter, reflecting growing institutional interest. Currently, hedge funds and other institutional investors own approximately 58.74% of the company’s stock.
As Ford navigates a challenging market landscape, the adjustments in analyst ratings and institutional investments highlight the ongoing uncertainty and potential for recovery in the automotive sector. Investors will be closely monitoring Ford’s performance in the coming months as the company seeks to adapt to evolving market conditions and consumer demands.
