Honda Motor Co., Ltd. (NYSE:HMC) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• Analyst sentiment is bearish: Honda Motor has an average recommendation of "Reduce" from seven covering analysts, with three sell ratings, three hold ratings, and one strong buy. The average 12-month target price is $25.00.
• Recent analyst actions have mostly been downgrades: Wall Street Zen, Zacks Research, Weiss Ratings, and Morgan Stanley all lowered their ratings on Honda Motor in recent months, while BNP Paribas Exane initiated coverage with an underperform rating.
• Operational and market snapshot: Honda shares were trading around $24.53, near their 52-week low of $23.25, and the company reported quarterly EPS of $0.76, beating estimates even though revenue fell short of expectations.

Shares of Honda Motor Co., Ltd. (NYSE:HMC - Get Free Report) have earned an average rating of "Reduce" from the seven research firms that are covering the stock, Marketbeat.com reports. Three equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and one has assigned a strong buy rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $25.00.

Several equities research analysts have issued reports on HMC shares. Wall Street Zen downgraded shares of Honda Motor from a "hold" rating to a "sell" rating in a research report on Saturday, March 14th. Zacks Research downgraded shares of Honda Motor from a "hold" rating to a "strong sell" rating in a research report on Monday, April 6th. BNP Paribas Exane started coverage on shares of Honda Motor in a research report on Thursday, February 12th. They set an "underperform" rating and a $25.00 price objective for the company. Weiss Ratings downgraded shares of Honda Motor from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, April 16th. Finally, Morgan Stanley downgraded shares of Honda Motor from an "overweight" rating to an "equal weight" rating in a research report on Wednesday, March 11th.

Institutional Investors Weigh In On Honda Motor

Hedge funds and other institutional investors have recently made changes to their positions in the business. WealthCollab LLC raised its position in shares of Honda Motor by 66.2% in the second quarter. WealthCollab LLC now owns 916 shares of the company's stock valued at $26,000 after buying an additional 365 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Honda Motor in the third quarter valued at approximately $26,000. Newbridge Financial Services Group Inc. acquired a new stake in shares of Honda Motor in the second quarter valued at approximately $29,000. Lodestone Wealth Management LLC acquired a new stake in shares of Honda Motor in the fourth quarter valued at approximately $32,000. Finally, Sound Income Strategies LLC acquired a new stake in shares of Honda Motor in the fourth quarter valued at approximately $33,000. 5.32% of the stock is currently owned by institutional investors and hedge funds.

Honda Motor Trading Up 0.1%

Shares of NYSE:HMC opened at $24.53 on Monday. The company has a 50-day simple moving average of $25.42 and a 200 day simple moving average of $28.66. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.09 and a current ratio of 1.36. The company has a market capitalization of $38.28 billion, a P/E ratio of 9.77 and a beta of 0.41. Honda Motor has a 52-week low of $23.25 and a 52-week high of $34.89.

Honda Motor (NYSE:HMC - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.24. The firm had revenue of $29.99 billion during the quarter, compared to the consensus estimate of $33.34 billion. Honda Motor had a net margin of 2.34% and a return on equity of 4.01%. Sell-side analysts forecast that Honda Motor will post -2.61 earnings per share for the current year.

Honda Motor Company Profile

Honda Motor Co, Ltd. is a global manufacturer and mobility company headquartered in Minato, Tokyo, Japan, founded in 1948 by Soichiro Honda and Takeo Fujisawa. The company's core businesses include the design, manufacture and sale of automobiles and motorcycles, along with a diverse portfolio of power products, engines and related components. Honda also operates in aviation through Honda Aircraft Company and offers financial services that support vehicle sales and leasing.

In automobiles, Honda is known for a range of passenger cars, crossovers and light trucks, and in motorcycles it is one of the world's leading producers by volume and model breadth.

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