Honda Motor (NYSE:HMC) Sets New 12-Month Low - Should You Sell?

Key Points

• Honda hit a new 52-week low, trading as low as $23.43 and last around $23.40 on roughly 671,402 shares changed hands.
• Analyst sentiment is mixed—1 Strong Buy, 6 Hold and 1 Sell—with an average rating of Hold and an average price target of $25, amid recent downgrades and upgrades from major firms.
• Fundamentals are mixed: quarterly EPS beat expectations ($0.76 vs. $0.52) but revenue missed ($29.99B vs. $33.34B); the stock has a low P/E of 9.32 and trades below its 50- and 200-day moving averages, indicating downward momentum.

Honda Motor Co., Ltd. (NYSE:HMC - Get Free Report) reached a new 52-week low on Tuesday . The stock traded as low as $23.43 and last traded at $23.3970, with a volume of 671402 shares trading hands. The stock had previously closed at $23.84.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on HMC shares. Wall Street Zen downgraded Honda Motor from a "hold" rating to a "sell" rating in a research report on Saturday, March 14th. Nomura raised Honda Motor to a "strong-buy" rating in a research report on Tuesday, December 9th. Morgan Stanley lowered Honda Motor from an "overweight" rating to an "equal weight" rating in a research note on Wednesday, March 11th. BNP Paribas Exane started coverage on Honda Motor in a research note on Thursday, February 12th. They issued an "underperform" rating and a $25.00 target price for the company. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Honda Motor in a research note on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Honda Motor has an average rating of "Hold" and an average price target of $25.00.

Honda Motor Stock Performance

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 firm's 50-day moving average price is $28.18 and its two-hundred day moving average price is $29.74. The firm has a market capitalization of $36.53 billion, a price-to-earnings ratio of 9.32, a price-to-earnings-growth ratio of 0.85 and a beta of 0.43.

Honda Motor (NYSE:HMC - Get Free Report) last issued its earnings results on Wednesday, February 11th. The company reported $0.76 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $33.34 billion. Sell-side analysts predict that Honda Motor Co., Ltd. will post 3.99 earnings per share for the current year.

Hedge Funds Weigh In On Honda Motor

Several hedge funds and other institutional investors have recently modified their holdings of the stock. WealthCollab LLC increased its position in shares of Honda Motor by 66.2% during the 2nd quarter. WealthCollab LLC now owns 916 shares of the company's stock worth $26,000 after purchasing an additional 365 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in Honda Motor during the 3rd quarter worth approximately $26,000. Newbridge Financial Services Group Inc. bought a new stake in Honda Motor during the 2nd quarter worth approximately $29,000. Lodestone Wealth Management LLC acquired a new position in Honda Motor during the 4th quarter worth about $32,000. Finally, Sound Income Strategies LLC bought a new position in Honda Motor in the 4th quarter worth approximately $33,000. Institutional investors own 5.32% of the company's stock.

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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