Honda Motor Co., Ltd. (NYSE:HMC) Sees Large Decrease in Short Interest

Key Points

• Honda saw a 23.3% decrease in short interest in March to 2,023,048 shares (about 0.1% of shares), leaving a short-interest ratio of 1.2 days based on average daily volume.
• Institutional activity was notable: Auto Owners Insurance Co. boosted its stake by 5,004.4%, adding 8,414,952 shares, while Fisher, Bank of America and others also increased holdings.
• Analyst sentiment has weakened with several downgrades; the stock carries an average consensus rating of "Hold" and a consensus target price of $25.00, near the recent trading level (~$24.16).

Honda Motor Co., Ltd. (NYSE:HMC - Get Free Report) saw a significant decrease in short interest during the month of March. As of March 31st, there was short interest totaling 2,023,048 shares, a decrease of 23.3% from the March 15th total of 2,637,763 shares. Approximately 0.1% of the company's stock are sold short. Based on an average daily volume of 1,661,439 shares, the short-interest ratio is currently 1.2 days.

Institutional Trading of Honda Motor

A number of large investors have recently added to or reduced their stakes in the stock. Fisher Asset Management LLC increased its holdings in Honda Motor by 2.0% during the third quarter. Fisher Asset Management LLC now owns 10,572,505 shares of the company's stock worth $325,633,000 after buying an additional 205,016 shares during the last quarter. Auto Owners Insurance Co increased its stake in shares of Honda Motor by 5,004.4% in the fourth quarter. Auto Owners Insurance Co now owns 8,583,102 shares of the company's stock worth $25,303,000 after purchasing an additional 8,414,952 shares in the last quarter. Mondrian Investment Partners LTD purchased a new position in shares of Honda Motor in the third quarter worth about $136,637,000. Bank of America Corp DE increased its stake in shares of Honda Motor by 34.8% in the third quarter. Bank of America Corp DE now owns 4,200,280 shares of the company's stock worth $129,369,000 after purchasing an additional 1,083,245 shares in the last quarter. Finally, Donald Smith & CO. Inc. increased its stake in shares of Honda Motor by 28.7% in the fourth quarter. Donald Smith & CO. Inc. now owns 2,648,828 shares of the company's stock worth $78,087,000 after purchasing an additional 590,128 shares in the last quarter. Hedge funds and other institutional investors own 5.32% of the company's stock.

Honda Motor Stock Performance

NYSE HMC opened at $24.16 on Wednesday. Honda Motor has a 52-week low of $23.25 and a 52-week high of $34.89. The company has a 50-day simple moving average of $27.45 and a 200 day simple moving average of $29.34. 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 $37.71 billion, a PE ratio of 9.63, a price-to-earnings-growth ratio of 1.81 and a beta of 0.43.

Honda Motor (NYSE:HMC - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.52 by $0.24. Honda Motor had a net margin of 2.34% and a return on equity of 4.01%. The business had revenue of $29.99 billion during the quarter, compared to the consensus estimate of $33.34 billion. On average, research analysts predict that Honda Motor will post 3.99 EPS for the current year.

Analysts Set New Price Targets

HMC has been the subject of several analyst reports. Zacks Research downgraded shares of Honda Motor from a "hold" rating to a "strong sell" rating in a report on Monday, April 6th. Wall Street Zen downgraded shares of Honda Motor from a "hold" rating to a "sell" rating in a report on Saturday, March 14th. Weiss Ratings reiterated a "hold (c)" rating on shares of Honda Motor in a report on Monday, December 29th. BNP Paribas Exane initiated coverage on shares of Honda Motor in a report on Thursday, February 12th. They issued an "underperform" rating and a $25.00 target price for the company. Finally, Morgan Stanley downgraded shares of Honda Motor from an "overweight" rating to an "equal weight" rating in a report on Wednesday, March 11th. One analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $25.00.

About Honda Motor

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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