TLDR
- Ford stock closed at $9.61, down 0.41% in the latest trading session
- The company is projected to report earnings of $0.07 per share, representing an 85.71% year-over-year decline
- Analysts have recently lowered Ford’s earnings estimates, with the stock currently rated as a Zacks Rank #4 (Sell)
- Multiple analysts have reduced their price targets, with an average rating of “Hold” and a consensus target of $11.89
- Ford announced a quarterly dividend of $0.15, representing a 6.25% annualized yield
Ford Motor Company’s stock has been showing weakness in recent trading sessions, with investors closely monitoring its performance amid challenging market conditions. The automaker faces declining earnings projections and analyst downgrades as it navigates a competitive automotive landscape.
In the most recent trading session, Ford Motor Company (F) closed at $9.61, representing a 0.41% decrease from the previous day.
Despite this decline, Ford’s performance was actually better than the broader market. The S&P 500 registered a more substantial loss of 1.78% for the day.
The Dow Jones Industrial Average lost 0.99%, while the technology-focused Nasdaq declined by 2.61%.
Looking at Ford’s recent performance, the company’s shares have decreased by 3.6% over the past month. This decline was less severe than the Auto-Tires-Trucks sector’s loss of 15.76%.
However, Ford’s performance lagged behind the S&P 500’s 3.48% loss during the same period.
The company’s upcoming earnings report is generating significant attention from market participants. Ford is projected to report earnings of $0.07 per share.
This would represent a substantial year-over-year decline of 85.71% if realized. Revenue projections are similarly concerning.
The consensus estimate forecasts revenue of $35.51 billion. This figure represents a 10.99% decrease from the equivalent quarter of the previous year.
For the full year, analysts anticipate earnings of $1.37 per share and revenue of $166.15 billion. These projections indicate year-over-year changes of -25.54% and -3.78%, respectively.
Recent revisions to analyst estimates for Ford have been predominantly negative. Over the past month, the Zacks Consensus EPS estimate has moved 19.24% lower.
Concerns about near-term business performance
This downward revision reflects growing concerns about Ford’s near-term business performance and profit potential. The company currently holds a Zacks Rank #4 (Sell).
From a valuation perspective, Ford is trading with a Forward P/E ratio of 7.03. This is below the industry average of 11.03, suggesting the stock may be undervalued compared to its peers.
The company’s PEG ratio stands at 0.67, compared to the Automotive – Domestic industry average of 1.15. The PEG ratio factors in expected earnings growth, providing additional context to traditional P/E valuations.
Ford’s stock experienced even greater pressure during mid-day trading on Tuesday, when shares were down 2.5%. The stock traded as low as $9.07 before closing at $9.16.
Trading volume was approximately 50 million shares, representing a 36% decline from the average daily volume of about 78 million shares.
Several major financial institutions have recently adjusted their outlook on Ford. Wells Fargo & Company reduced their price target from $9.00 to $8.00 while maintaining an “underweight” rating.
Royal Bank of Canada similarly lowered their target from $10.00 to $9.00, rating the stock as “sector perform.” Evercore ISI decreased their price target from $11.00 to $10.00.
Barclays downgraded Ford from “overweight” to “equal weight” and reduced their price target from $13.00 to $11.00. The overall analyst consensus stands at “Hold” with an average price target of $11.89.
Earnings report showed some positive signs
Ford’s quarterly earnings report from February 5th showed some positive signs despite the challenging environment. The company reported earnings per share of $0.39, exceeding analysts’ consensus estimate of $0.35.
The automaker maintains a debt-to-equity ratio of 2.31, with current and quick ratios of 1.16 and 1.02, respectively. Ford’s market capitalization stands at approximately $38.07 billion.
The company recently declared a quarterly dividend of $0.15 per share, paid on March 3rd to stockholders of record as of February 18th. This represents an annualized dividend of $0.60 and a yield of 6.25%.
Ford Motor Company’s daily stock movements remain of interest to investors as the automaker navigates challenges in the automotive sector while maintaining a significant market presence with its range of trucks, commercial vehicles, SUVs, and luxury Lincoln vehicles worldwide.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
