Ford Motor Company (F): Do the Analysts Know Something You Don’t?

Ford Motor Company (F) will probably climb 10.09 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $13-month high price target. This represents a whopping 47.39 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $10, which represents a return potential of 13.38 percent when compared to the closing price of the stock of $8.82 on Friday, January 11. The lowest price target for the stock is $6 — slightly more than -31.97 percent from F’s current share price.

The stock is currently hovering around the first support level of $8.7. Below this, the next support is placed in the zone of $8.59. Till the time, the F stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 58.97 on daily chart, which may remain a cause for concern. If the price breaks below $8.59 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $8.93 mark may result into a pull-back move towards $9.05 level.

On 11th of January, Ford Motor Company (NYSE:F) shares ended higher after a volatile session. The shares accumulated 0.15 points or 1.73 percent at $8.82 with a light trade volume of 41.553 million shares. After opening the session at $8.77, the shares went as high as $8.93 and as low as $8.7, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $34.5 billion and now has 3.91 billion shares outstanding. Ford Motor Company (F) stock has gained 3.28 percent of market value in 21 trading days.

F stock has a trailing 3-year beta of 0.99, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.45 a share in the trailing twelve months. The stock’s value has surged 15.29 percent year to date (YTD) against a decline of -31.55 percent in 12 month’s time. The company’s shares still trade -33.83 percent away from its 1-year high of $13.33 and 19.03 percent up from 52-week low of $7.41. The average consensus rating on the company is 2.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Ford Motor Company (F) are trading at a P/E ratio of 12.96 times earnings reported for the past 12 months. The industry F operates in has an average P/E of 15.91. Its P/E ratio went as low as 5.26X and as high as 49.84 over the 5-year span. Further, it is sporting a 0.22 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.53. 9.3 percent is the gross profit margin for Ford Motor Company and operating margin sits at 2.2 percent. Along with this, the net profit margin is 3.9 percent.

Let’s take a look at some insider activity at Ford Motor Company (NYSE:F) and see the pattern. The earliest insider trade took place on 10/29/2018. Charley Ray T gathered a total of 4 thousand shares of company at average share price of $12.9. The total for the purchase was set at $51.6 thousand. After this transaction, the Director account balance stood at 18 thousand shares. The stock lost -31.63 percent since that insider purchase. On 09/24/2018, Armstrong Steven R., Group Vice President, sold 13 thousand shares at a price per share of $9.54. This removed 124.02 thousand shares from the insider’s fortune and the stock saw a -7.55 percent retreat in value since the news became public. This transaction left 94.53 thousand shares in the Group Vice President account.

On 08/02/2018, Director Lechleiter John C performed a purchase transaction worth $98.9 thousand. This purchase at $9.89 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -10.82 percent decrease since the transaction was reported. The insider now is left with 45 thousand shares remaining in the account. Lechleiter John C, who performs the Director job, bought 5 thousand shares for $55.85 thousand. The acquisition occurred on 05/11/2018 was priced at $11.17 per share. The share price plunged -21.04 percent since the reporting date. Lechleiter John C now left with a stake of 35 thousand F stock worth $308.7 thousand after the insider buying.