Honda Motor (NYSE:HMC) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Equities research firm Wall Street Zen has downgraded Honda to a "sell" from "hold," joining mixed analyst moves (Morgan Stanley cut to equal weight; BNP Paribas Exane started with "underperform" and a $25 target) while the consensus rating across analysts remains "Hold" with a $25.00 average target.
• Honda has reassessed its EV plans and warned it may take an up to $15.7 billion write‑down, cancelled several planned U.S. EV launches and cut FY2025/26 guidance toward a large annual loss, actions that have driven recent share price weakness.
• The stock trades near $25.78 (52‑week range $24.56–$34.89); Honda beat EPS estimates last quarter ($0.76 vs. $0.52) but missed revenue forecasts, and sell‑side analysts project about 3.99 EPS for the current fiscal year.

Honda Motor (NYSE:HMC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Other analysts have also issued reports about the stock. Morgan Stanley lowered shares of Honda Motor from an "overweight" rating to an "equal weight" rating in a research note on Wednesday. Weiss Ratings restated a "hold (c)" rating on shares of Honda Motor in a report on Monday, December 29th. Nomura upgraded shares of Honda Motor to a "strong-buy" rating in a research report on Tuesday, December 9th. Finally, BNP Paribas Exane started coverage on shares of Honda Motor in a research note on Thursday, February 12th. They issued an "underperform" rating and a $25.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $25.00.

Honda Motor Stock Performance

Shares of NYSE HMC opened at $25.78 on Friday. The stock's fifty day simple moving average is $30.08 and its 200 day simple moving average is $30.84. The stock has a market capitalization of $40.24 billion, a price-to-earnings ratio of 10.27, a PEG ratio of 1.44 and a beta of 0.37. The company has a quick ratio of 1.09, a current ratio of 1.36 and a debt-to-equity ratio of 0.65. Honda Motor has a 52-week low of $24.56 and a 52-week high of $34.89.

Honda Motor (NYSE:HMC - Get Free Report) last announced its earnings results on Tuesday, February 10th. The company reported $0.76 EPS for the quarter, beating the consensus estimate of $0.52 by $0.24. The business had revenue of $29.99 billion during the quarter, compared to the consensus estimate of $33.34 billion. Honda Motor had a return on equity of 4.01% and a net margin of 2.34%.Honda Motor has set its FY 2026 guidance at 1.462-1.462 EPS. As a group, sell-side analysts forecast that Honda Motor will post 3.99 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Honda Motor

A number of large investors have recently made changes to their positions in HMC. WealthCollab LLC boosted its holdings in shares of Honda Motor by 66.2% during the second quarter. WealthCollab LLC now owns 916 shares of the company's stock worth $26,000 after purchasing an additional 365 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in Honda Motor in the 3rd quarter worth approximately $26,000. Newbridge Financial Services Group Inc. purchased a new stake in Honda Motor in the 2nd quarter worth approximately $29,000. Lodestone Wealth Management LLC acquired a new stake in shares of Honda Motor during the 4th quarter valued at $32,000. Finally, Sound Income Strategies LLC purchased a new position in shares of Honda Motor during the 4th quarter valued at $33,000. Institutional investors and hedge funds own 5.32% of the company's stock.

Trending Headlines about Honda Motor

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

• Positive Sentiment: Motorcycle and other non‑EV businesses are still contributing steady results, which analysts say could help cushion overall earnings as Honda reshapes its EV approach. 2 Vehicle Manufacturer Stocks to Watch: Honda and REV Group
• Neutral Sentiment: Honda filed an official notice about recording losses from its electrification strategy reassessment and revised consolidated financial forecasts for the year. This is the company’s formal disclosure of the charges and guidance changes. PR Newswire: Notice Concerning Recording of Losses
• Negative Sentiment: Honda said it will take up to a $15.7 billion write‑down tied to its EV business after reassessing product plans and investments — a headline charge that drove the market reaction. Reuters: $15.7 billion EV writedown
• Negative Sentiment: The company warned the reassessment could push it to its first annual loss in nearly seven decades, and it cut FY2025/26 guidance to a loss of roughly ¥420–690 billion (about $2.6–4.3 billion). That outlook revision amplifies near‑term earnings uncertainty. Reuters: FY2025/26 loss guidance
• Negative Sentiment: Honda cancelled several planned EV launches for the U.S. market (citing tariffs and intense competition from Chinese EV makers), signaling a strategic retreat that could reduce future EV revenue potential. TechCrunch: Scrapped U.S. EV launches
• Negative Sentiment: Market reaction: shares have moved lower across Tokyo and U.S. markets on the combination of the write‑down, guidance cut and cancelled models; analysts are reassessing profit forecasts and the competitiveness of Honda’s EV roadmap against Chinese rivals. MSN: Shares plunge as write‑down triggers first annual loss since 1957

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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