Ford (F) Stock: Why Analysts Just Raised Their Bets on This Automaker

TLDR

• Ford shares gained after reports emerged of a secret lab in Los Angeles developing next-generation EVs and software
• Banco BTG Pactual S.A. acquired 195,509 shares worth approximately $2.1 million in the second quarter
• Analysts raised price targets with an average consensus of $12.04 and a Hold rating
• Ford beat earnings estimates with $0.45 per share versus the expected $0.38 in its latest quarter
• The stock traded at $13.62 on Friday with institutional investors holding 58.74% of shares

Ford Motor Company shares moved higher this week after news broke about a secretive research facility in Los Angeles. The lab is reportedly focused on rapidly developing the automaker’s next generation of electric vehicles and advanced software systems.

Ford Motor Company, F

The skunkworks-style operation represents Ford’s push to stay competitive in the EV market. Details about the facility’s specific projects remain limited, but the revelation has caught the attention of investors looking for signs of innovation.

On the institutional front, Banco BTG Pactual S.A. filed paperwork showing a new position in Ford during the second quarter. The Brazilian bank acquired 195,509 shares valued at roughly $2.1 million.

This move comes as other major institutional players have been adjusting their stakes. Vanguard Group Inc. increased its holdings by 1.0% to own 462.2 million shares worth over $5 billion.

Charles Schwab Investment Management boosted its stake by 3.7% to hold 145.1 million shares. Geode Capital Management made an even bigger move, increasing its position by 17.9% to reach 103.7 million shares.

Analyst Activity and Price Targets

Several Wall Street firms have updated their views on Ford in recent months. Jefferies Financial Group upgraded the stock from underperform to hold and raised its price target from $9 to $12.

JPMorgan Chase lifted its target from $13 to $14 while maintaining an overweight rating. Goldman Sachs bumped its price objective from $11 to $12 with a neutral stance.

Royal Bank of Canada also increased its target from $11 to $12 following Ford’s third-quarter results. The consensus among analysts now sits at a Hold rating with an average price target of $12.04.

Ford’s latest quarterly earnings provided some good news for shareholders. The company reported earnings of $0.45 per share, beating analyst expectations of $0.38.

Revenue came in at $50.53 billion for the quarter, well above the consensus estimate of $43.08 billion. That represented a 9.4% increase compared to the same period last year.

The company continues to pay a quarterly dividend of $0.15 per share. That works out to an annual yield of 4.4% based on current prices.

Ford stock closed at $13.62 on Friday, trading up 1.6% for the session. The shares have ranged from a 52-week low of $8.44 to a high of $13.97.

The company carries a debt-to-equity ratio of 2.20 and maintains a quick ratio of 0.98. Ford’s market capitalization stood at $54.27 billion as of Friday’s close.

Institutional investors and hedge funds collectively own 58.74% of the company’s stock. The shares trade with a beta of 1.60 and a price-to-earnings ratio of 11.74.

Ford operates through several business segments including Ford Blue, Ford Model e, Ford Pro, Ford Next, and Ford Credit. The dividend payment was distributed to shareholders on December 1st for those who held shares as of November 7th.

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