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What Analysts Are Recommending for Ford Stock in June

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Analyst recommendations for Ford stock

According to the latest data compiled by Reuters, 30.0% of analysts covering Ford Motor (F) stock have given it a “buy” recommendation. Another 61.0% have recommended a “hold” for the stock, while the remaining 9.0% have recommended a “sell.”

These stock recommendations are based on the consensus of a total of 23 analysts currently covering Ford Motor.

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Price targets for Ford Motor

On June 13, 2017, Ford’s consensus 12-month target price was $12.85. That reflects a positive return potential of about 14.0% from its market price of $11.27.

Ford stock has been underperforming the broader market and other mainstream automakers’ stocks for three consecutive quarters. On a year-to-date basis, Ford stock has fallen about 7.1% as of June 13, 2017.

Recent leadership changes

On May 22, 2017, Ford Motor made significant changes in its leadership when Jim Hackett was named its new CEO (chief executive officer), effective immediately. Mark Fields had served as CEO since July 2014. In the last few quarters, Fields attracted sharp criticism from experts on being unable to keep investor confidence in the company. Ford’s profit margin has also been falling for the last couple of quarters.

In 1Q17, Ford’s adjusted net profit margin stood at 4.3%, which is significantly lower than its net profit margin of 7.7% in 1Q16.

Legacy automakers (IYK) such as Ford, General Motors (GM), Fiat Chrysler Automobiles (FCAU), and Toyota (TM) make a significant portion of their revenues from the US market.

In the next part, we’ll look at analysts’ recommendations for Tesla (TSLA) in June 2017.

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