TLDR
- Executive Chairman William Clay Ford, Jr. acquired 140,000 shares at $13.82 per share, totaling approximately $1.93M, increasing his holdings to 3,912,600 shares.
- Shares of Ford surged nearly 4.5%, peaking at $14.33 amid higher-than-normal trading activity.
- Fourth-quarter earnings per share reached $0.13, significantly exceeding the analyst estimate of $0.06, while revenue of $45.89B surpassed the $41.78B projection.
- The automaker initiated two separate recalls affecting approximately 450,000 vehicles, including 2017–2019 Ford Explorers due to defective rear suspension components.
- Shareholders will receive a quarterly dividend of $0.15 on March 2, translating to an annualized yield of approximately 4.2%.
Shares of Ford Motor (F) advanced nearly 4.5% during Tuesday’s trading session, reaching an intraday peak of $14.33 following a significant stock purchase by executive chairman William Clay Ford, Jr.
The company insider acquired 140,000 shares on February 19 at an average purchase price of $13.82 per share, representing an investment of approximately $1.93 million. Following this transaction, his ownership position now totals 3,912,600 shares with an estimated value of $54 million.
When executives make substantial investments in their own companies, the market typically takes notice — and Tuesday was no exception.
Volume reached approximately 73.5 million shares, running about 6% higher than the automaker’s typical daily trading activity. The previous session had concluded with shares priced at $13.64.
This insider purchase followed closely on the heels of Ford’s most recent quarterly financial disclosure. The automaker delivered earnings per share of $0.13, substantially exceeding Wall Street’s consensus projection of $0.06. Total revenue reached $45.89 billion, comfortably beating analyst expectations of $41.78 billion.
However, the quarterly performance included some challenging metrics. Revenue declined 4.8% compared to the prior year period, and Ford recorded a negative net margin of 4.37%. During the comparable quarter last year, the company generated $0.39 in earnings per share.
Two Recalls, No Panic
Also on Tuesday, the Detroit automaker disclosed two separate vehicle recalls encompassing nearly 450,000 units total.
The more substantial recall involves 412,774 Ford Explorer SUVs manufactured between 2017 and 2019. The concern centers on a rear suspension toe link component that may develop cracks and potentially fracture under specific driving conditions, potentially compromising steering capability and elevating collision risk. Authorized service centers will install an upgraded, more robust replacement component.
A separate, smaller recall affects 40,655 vehicles experiencing issues related to battery malfunctions and brake pedal irregularities.
Ford has initiated 103 recalls throughout 2025. Company representatives have emphasized that an elevated recall frequency can actually demonstrate the effectiveness of their internal quality monitoring protocols rather than indicating deteriorating vehicle reliability.
Market participants appeared unfazed by the recall announcements. The stock maintained its positive momentum through the closing bell.
Analyst Ratings and Dividend
Wall Street’s outlook on F stock remains neutral. The consensus rating currently stands at “Hold,” derived from two Buy recommendations, 12 Hold ratings, and one Sell opinion issued within the last three months. The average analyst price target of $13.88 suggests modest downside from present trading levels.
Recent target adjustments include: HSBC upgraded its projection from $9.80 to $12.80 in January, Morgan Stanley increased its target from $11.00 to $14.00 in December, and Evercore raised its outlook to $14.00 during the same timeframe.
The automaker also announced a quarterly cash dividend of $0.15 per share, scheduled for payment on March 2 to shareholders registered as of February 13. Annualized, this distribution amounts to $0.60 per share, providing a dividend yield of roughly 4.2%.
Ford’s 50-day moving average currently rests at $13.68, while the 200-day moving average stands at $12.80. The company maintains a debt-to-equity ratio of 2.95 and a market capitalization of approximately $56.59 billion.
Wall Street analysts project full-year earnings per share of around $1.47 for the current fiscal year.
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