Ford Motor (NYSE:F) Shares Down 3.6% - Here's Why

Key Points

• Shares fell about 3.6% to ~$12.35 on heavy volume after reports Ford will recall roughly 604,000–615,000 U.S. vehicles over windshield wiper/drive defects, creating immediate headline risk and potential near-term costs.
• Offsetting the negative headlines, Bank of America initiated coverage with a Buy and a $17 price target and analysts point to Ford Pro growth and solid liquidity as reasons the company remains attractive to value investors, though consensus remains a "Hold" with a $13.29 target.
• Ford recently beat EPS and revenue estimates but still shows a negative net margin; the stock pays a 4.9% dividend and insiders (William Clay Ford Jr.) have added shares, reflecting mixed fundamentals and some shareholder confidence.

Ford Motor Company (NYSE:F - Get Free Report)'s share price fell 3.6% during mid-day trading on Thursday . The stock traded as low as $12.24 and last traded at $12.35. 71,557,928 shares were traded during mid-day trading, an increase of 1% from the average session volume of 71,147,414 shares. The stock had previously closed at $12.81.

Key Headlines Impacting Ford Motor

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

• Positive Sentiment: Bank of America initiated coverage with a Buy and a $17 price target, signalingStreet-level upside potential and helping support investor sentiment. Ford Motor is now covered by Bank of America Corporation
• Positive Sentiment: Zacks highlights Ford as a strong value stock based on style scores and argues that its valuation and cash/liquidity profile make it attractive for value-oriented investors. Here's Why Ford Motor Company (F) is a Strong Value Stock
• Positive Sentiment: Analysts and commentators note that Ford Pro growth and solid liquidity help insulate the investment case, suggesting recalls are manageable relative to the company’s broader business. Why Ford's Recall Storm Isn't Derailing Its Investment Story
• Neutral Sentiment: Comparisons and screeners continue to place Ford versus peers (e.g., Federal Signal) for value/sector allocation decisions; useful for portfolio positioning but not an immediate catalyst. F or FSS: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: Several opinion pieces and comparisons (including non-core coverage) are circulating; they influence sentiment but carry less direct financial impact than recalls or sales trends. Critical Review: Curtiss Motorcycles vs. Ford Motor
• Negative Sentiment: Regulatory filing: Ford will recall approximately 604,533 U.S. vehicles because the windshield wiper motor may fail, raising safety and potential warranty/recall costs. This is an immediate headline risk and likely a near-term drag on sentiment. Ford to recall nearly 605,000 vehicles in US over windshield wiper issue, NHTSA says
• Negative Sentiment: Other outlets report the company is recalling more than 615,000 vehicles across two defects, underlining the scale and reputational impact of the recall wave. Investors should watch any guidance or cost estimates from Ford. Ford recalls more than 600K vehicles over two separate safety defects
• Negative Sentiment: U.S. retail sales fell in February (total ~149,962 vehicles, -5.5% YoY) with declines in electric and hybrid segments—a demand signal that may pressure near-term revenue and EV margin plans. Ford Posts Lower U.S. Sales in February on Declines in Electric, Hybrid Vehicles
• Negative Sentiment: Market sentiment pieces highlight intense negative headlines and investor frustration, which can amplify short-term volatility even if fundamentals remain mixed. Everyone Hates Ford Right Now. Does That Make It a No-Brainer Buy?

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Bank of America began coverage on shares of Ford Motor in a report on Wednesday. They set a "buy" rating and a $17.00 price objective on the stock. Wall Street Zen lowered Ford Motor from a "buy" rating to a "sell" rating in a research note on Saturday, February 14th. Barclays raised their price objective on Ford Motor from $12.00 to $13.00 and gave the stock an "equal weight" rating in a research report on Friday, January 23rd. Royal Bank Of Canada reiterated a "sector perform" rating and set a $12.00 price target on shares of Ford Motor in a research note on Wednesday, February 11th. Finally, TD Cowen increased their price objective on shares of Ford Motor from $13.00 to $15.00 and gave the company a "hold" rating in a research note on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Ford Motor presently has an average rating of "Hold" and a consensus price target of $13.29.

Ford Motor Price Performance

The company has a debt-to-equity ratio of 2.95, a current ratio of 1.07 and a quick ratio of 0.94. The firm has a market capitalization of $49.27 billion, a P/E ratio of -6.00, a PEG ratio of 0.31 and a beta of 1.65. The company's 50 day moving average price is $13.72 and its 200 day moving average price is $12.91.

Ford Motor (NYSE:F - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The auto manufacturer reported $0.13 EPS for the quarter, topping analysts' consensus estimates of $0.06 by $0.07. The firm had revenue of $45.89 billion during the quarter, compared to analyst estimates of $41.78 billion. Ford Motor had a positive return on equity of 10.16% and a negative net margin of 4.37%.The company's revenue was down 4.8% on a year-over-year basis. During the same period last year, the company earned $0.39 earnings per share. As a group, sell-side analysts anticipate that Ford Motor Company will post 1.47 EPS for the current fiscal year.

Ford Motor Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Friday, February 13th were issued a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 4.9%. The ex-dividend date was Friday, February 13th. Ford Motor's dividend payout ratio is -29.13%.

Insider Transactions at Ford Motor

In other news, insider William Clay Ford, Jr. acquired 140,000 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The stock was acquired at an average cost of $13.82 per share, for a total transaction of $1,934,800.00. Following the completion of the acquisition, the insider owned 3,912,600 shares in the company, valued at $54,072,132. This represents a 3.71% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.48% of the company's stock.

Institutional Investors Weigh In On Ford Motor

Institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank acquired a new position in Ford Motor in the 4th quarter valued at $674,437,000. DLD Asset Management LP bought a new stake in shares of Ford Motor in the third quarter valued at about $299,000,000. Marshall Wace LLP grew its stake in shares of Ford Motor by 712.7% in the second quarter. Marshall Wace LLP now owns 19,572,437 shares of the auto manufacturer's stock valued at $212,361,000 after acquiring an additional 17,164,234 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Ford Motor by 17.9% in the second quarter. Geode Capital Management LLC now owns 103,784,031 shares of the auto manufacturer's stock valued at $1,122,434,000 after acquiring an additional 15,748,694 shares in the last quarter. Finally, AQR Capital Management LLC increased its position in Ford Motor by 610.1% during the fourth quarter. AQR Capital Management LLC now owns 11,177,304 shares of the auto manufacturer's stock worth $146,646,000 after acquiring an additional 9,603,267 shares during the period. 58.74% of the stock is owned by institutional investors.

About Ford Motor

Ford Motor Company NYSE: F is an American multinational automaker headquartered in Dearborn, Michigan. Founded by Henry Ford in 1903, the company became an early pioneer of mass-production techniques with the Model T and the adoption of the moving assembly line. Today, Ford designs, manufactures, markets and services a broad range of vehicles and mobility solutions under the Ford and Lincoln brands, spanning passenger cars, SUVs, pickup trucks and commercial vehicles.

Ford's business activities extend beyond vehicle production to include parts and aftermarket services, fleet and commercial sales, and automotive financing through Ford Motor Credit Company.

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