Ford Motor (NYSE: F) saw its stock price decline by 0.5% during Thursday’s mid-day trading session following a price target downgrade by Piper Sandler. The firm lowered its target from $13.00 to $9.00, maintaining a neutral rating on the stock. Ford shares briefly dipped to $9.99 before closing at $10.12, with 21.9 million shares traded—a 64% drop from its average daily volume of 60.9 million shares.
The price cut comes amid a series of mixed analyst ratings. In recent months:
- BNP Paribas upgraded Ford to a hold rating on February 10.
- Jefferies Financial Group downgraded the stock to underperform on December 16, slashing its price target from $12.00 to $9.00.
- JPMorgan Chase & Co. trimmed its price target from $14.00 to $13.00 while keeping an overweight rating on February 7.
- Bank of America dropped its target from $19.00 to $15.50 but maintained a buy rating on February 6.
- Barclays shifted from overweight to equal weight on January 22, lowering its price target from $13.00 to $11.00.
The stock currently carries a consensus rating of “Hold” from 18 analysts, including three sell ratings, 11 hold ratings, and four buy ratings, with an average price target of $11.50, according to MarketBeat.
Institutional Activity and Financial Performance
Institutional investors have recently adjusted their positions in Ford:
- Empowered Funds LLC increased its holdings by 6.3% in Q3, now owning 94,227 shares valued at approximately $995,000.
- Quest Partners LLC took a new position worth around $96,000 during the same period.
- PNC Financial Services Group Inc. raised its stake by 17.0%, acquiring 1.09 million shares valued at $11.55 million.
- Commerce Bank also boosted its holdings by 4.9%, bringing its total to 144,810 shares worth $1.53 million.
Overall, 58.74% of Ford’s shares are held by institutional investors and hedge funds.
Dividend and Financials
Ford recently distributed a quarterly dividend of $0.15 per share, paid on March 3 to shareholders of record as of February 18. This equates to an annualized dividend of $0.60, offering a 5.97% yield. The company’s payout ratio stands at 41.1%.
For the fiscal year, Ford is expected to post $1.47 earnings per share (EPS), with the company last reporting quarterly earnings of $0.39 EPS on February 5, beating analyst estimates by $0.04. Ford reported a return on equity (ROE) of 16.88% and a net margin of 3.18%.
Stock Performance and Outlook
Ford’s stock currently trades with a market cap of $39.81 billion, a P/E ratio of 6.88, and a P/E/G ratio of 0.61, indicating undervaluation relative to growth expectations. With a beta of 1.59, the stock remains moderately volatile.
Despite the recent price target downgrades, Ford’s attractive dividend yield and steady financial performance continue to draw attention from value-oriented and income-seeking investors.
