Honda Motor (NYSE:HMC) Upgraded by Wall Street Zen to Hold Rating

Key Points

• Wall Street Zen upgraded Honda Motor from “sell” to “hold”, but the broader analyst view remains cautious with an average rating of “Reduce” and a $25 target price.
• Honda’s latest quarterly results beat expectations, with EPS and revenue both coming in better than analysts expected, even though the company still reported a loss for the quarter.
• The company faces significant headwinds, including its first annual operating loss since 1948 and more than $9 billion in EV restructuring costs, which have pressured its outlook.

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

A number of other brokerages have also recently issued reports on HMC. Morgan Stanley cut shares of Honda Motor from an "overweight" rating to an "equal weight" rating in a research note on Wednesday, March 11th. Weiss Ratings cut shares of Honda Motor from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, April 16th. BNP Paribas Exane began coverage on shares of Honda Motor in a research note on Thursday, February 12th. They issued an "underperform" rating and a $25.00 price target on the stock. Finally, Zacks Research cut shares of Honda Motor from a "hold" rating to a "strong sell" rating in a research note on Monday, April 6th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $25.00.

Honda Motor Stock Performance

Shares of Honda Motor stock opened at $26.19 on Friday. The stock has a market cap of $40.87 billion, a price-to-earnings ratio of -13.71 and a beta of 0.41. The firm's 50-day moving average is $24.87 and its 200 day moving average is $28.40. Honda Motor has a 1 year low of $23.25 and a 1 year high of $34.89. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.36 and a quick ratio of 1.09.

Honda Motor (NYSE:HMC - Get Free Report) last announced its quarterly earnings results on Thursday, May 14th. The company reported ($4.24) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($5.74) by $1.50. The company had revenue of $36.81 billion for the quarter, compared to analysts' expectations of $32.99 billion. Honda Motor had a negative net margin of 1.75% and a negative return on equity of 3.04%. Honda Motor has set its FY 2027 guidance at 1.278-1.278 EPS. Sell-side analysts anticipate that Honda Motor will post -0.35 EPS for the current fiscal year.

Hedge Funds Weigh In On Honda Motor

Hedge funds and other institutional investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. lifted its stake in Honda Motor by 189.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 344,038 shares of the company's stock valued at $10,596,000 after acquiring an additional 225,140 shares during the period. Envestnet Asset Management Inc. increased its position in shares of Honda Motor by 28.4% during the 3rd quarter. Envestnet Asset Management Inc. now owns 512,054 shares of the company's stock valued at $15,771,000 after purchasing an additional 113,347 shares during the last quarter. Caprock Group LLC purchased a new stake in shares of Honda Motor during the 3rd quarter valued at about $1,891,000. Equity Investment Corp increased its position in shares of Honda Motor by 1.4% during the 3rd quarter. Equity Investment Corp now owns 2,274,239 shares of the company's stock valued at $70,047,000 after purchasing an additional 30,712 shares during the last quarter. Finally, Sivia Capital Partners LLC purchased a new stake in shares of Honda Motor during the 2nd quarter valued at about $261,000. Institutional investors own 5.32% of the company's stock.

Honda Motor News Summary

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

• Positive Sentiment: Honda’s quarterly revenue and EPS beat expectations, suggesting core operations were better than feared despite the annual loss. Honda earnings report and conference call
• Positive Sentiment: Broker support remains intact, with Citi and Nomura keeping buy ratings, which may be helping cushion sentiment. CNBC article on Honda shares rise
• Neutral Sentiment: Honda updated FY2027 guidance with revenue above consensus but EPS below expectations, leaving the outlook mixed for investors.
• Negative Sentiment: The company posted its first annual operating loss since 1948, with a ¥414.3 billion operating loss and ¥423.9 billion net loss, reflecting a major earnings reset. Invezz article on Honda first loss since 1948
• Negative Sentiment: Losses were driven by more than $9 billion in EV restructuring costs, along with tariff pressure and a weakened U.S. EV strategy, raising concerns about future profitability. Reuters article on Honda annual loss and EV charge

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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