Ford Motor (NYSE:F) Stock Falls 2.1% – Here’s Why

Ford Motor Company (NYSE:F) traded down 2.1% during mid-day trading on Wednesday. The company traded as low as $11.96 and last traded at $12.0460. 50,147,375 shares traded hands during trading, a decline of 13% from the average daily volume of 57,519,277 shares. The stock had previously closed at $12.30.

Key Ford Motor News

Here are the key news stories impacting Ford Motor this week:

• Positive Sentiment: Ford CEO Jim Farley said the supplier problem that recently disrupted F-150 production has been resolved, which should allow truck output to recover. However, the disruption still reduced third-quarter wholesale deliveries. Ford F-150 supplier disruption to impact third-quarter sales
• Neutral Sentiment: Farley urged U.S. policymakers to carefully consider Chinese automakers’ potential entry into the American market, citing Europe as a warning. The comments highlight competitive risks but do not represent an immediate change to Ford’s operations. Ford CEO urges caution on Chinese automakers
• Negative Sentiment: Cox Automotive projects Ford sales will decline 8.8% through the first three quarters, reinforcing concerns about demand and near-term revenue growth. Ford’s sales hit alarming drop
• Negative Sentiment: The F-150 supplier disruption is expected to weigh on third-quarter results despite production recovery, particularly because the pickup is a key contributor to Ford’s profitability. Ford F-150 sales to drop this quarter over supplier issue
• Negative Sentiment: Ford faces a potential shortage of skilled trade workers, raising longer-term risks for manufacturing capacity, production costs and execution. Ford labor shortage and manufacturing
• Negative Sentiment: Political scrutiny over Chinese battery technology at Ford’s Michigan plant adds uncertainty to its electric-vehicle supply chain and domestic battery strategy. Ford Michigan battery lead and EV supply chain
• Negative Sentiment: Ford recalled 11,405 Ranger pickups because a display defect could disable the rearview-camera image, creating safety, warranty and reputational costs. Ford Ranger recall

Analyst Upgrades and Downgrades

F has been the topic of several analyst reports. JPMorgan Chase & Co. increased their target price on shares of Ford Motor from $16.00 to $17.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. Wall Street Zen cut shares of Ford Motor from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Ford Motor in a research note on Monday, September 21st. BNP Paribas Exane lifted their target price on Ford Motor from $14.00 to $14.50 and gave the stock a “neutral” rating in a report on Thursday, July 30th. Finally, Wells Fargo & Company increased their price target on Ford Motor from $10.00 to $11.00 and gave the stock an “underweight” rating in a report on Thursday, June 25th. Eight investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $15.68.

Ford Motor Stock Down 2.1%

The firm has a market capitalization of $48.03 billion, a P/E ratio of -6.44, a PEG ratio of 0.26 and a beta of 1.83. The company has a debt-to-equity ratio of 3.07, a quick ratio of 0.93 and a current ratio of 1.09. The firm’s 50-day moving average is $13.93 and its 200 day moving average is $13.53.

Ford Motor (NYSE:F) last announced its earnings results on Tuesday, July 28th. The auto manufacturer reported $0.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.09. Ford Motor had a positive return on equity of 17.23% and a negative net margin of 3.93%.The business had revenue of $48.30 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same quarter last year, the firm earned $0.37 EPS. Ford Motor’s revenue for the quarter was down 3.8% compared to the same quarter last year. As a group, equities research analysts predict that Ford Motor Company will post 1.86 EPS for the current fiscal year.

Ford Motor Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th were given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 5.0%. The ex-dividend date of this dividend was Tuesday, August 11th. Ford Motor’s payout ratio is currently -32.09%.

Institutional Investors Weigh In On Ford Motor

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Ford Motor during the 2nd quarter worth about $4,649,131,000. State Street Corp raised its holdings in Ford Motor by 0.8% during the second quarter. State Street Corp now owns 194,039,770 shares of the auto manufacturer’s stock worth $2,697,153,000 after acquiring an additional 1,492,186 shares in the last quarter. Bank of America Corp DE raised its holdings in Ford Motor by 318.0% during the second quarter. Bank of America Corp DE now owns 72,424,686 shares of the auto manufacturer’s stock worth $1,006,703,000 after acquiring an additional 55,100,244 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Ford Motor during the second quarter valued at approximately $717,218,000. Finally, Dimensional Fund Advisors LP boosted its position in Ford Motor by 3.5% during the first quarter. Dimensional Fund Advisors LP now owns 47,442,901 shares of the auto manufacturer’s stock valued at $547,379,000 after purchasing an additional 1,585,557 shares during the last quarter. 58.74% of the stock is currently owned by institutional investors and hedge funds.

About Ford Motor

Ford Motor Co is an American automobile manufacturer that designs, manufactures, markets and services a broad range of vehicles and mobility-related products. Its lineup includes cars, trucks, sport utility vehicles, commercial vehicles and electric vehicles sold under the Ford brand, as well as luxury vehicles marketed through its Lincoln brand.

Founded by Henry Ford in 1903 and headquartered in Dearborn, Michigan, Ford is one of the world’s oldest major automakers. The company helped popularize mass automobile production and continues to serve customers in North America, South America, Europe and other international markets through manufacturing, sales and distribution operations.

Ford organizes its operations around Ford Blue for gasoline and hybrid vehicles, Model e for electric vehicles, and Ford Pro for commercial customers and related services.