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Ford Motor sees potential positive returns amid institutional influence

EditorHari Govind
Published 06/11/2023, 14:40
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Ford Motor Company (NYSE:F) has experienced a notable shift in its share price, with an 8.1% gain last week following a year of 14% losses. This change suggests potential positive returns for the company, despite the significant influence of institutional stakeholders who collectively hold a 58% stake in the company.

The performance measurement of these institutions against major indices has led to Ford Motor's inclusion in these indices. However, the risk of a crowded trade looms, as rapid selling could be triggered if trades go wrong. The Vanguard Group, Inc., the largest shareholder, owns 8.5% of Ford, while the second and third largest shareholders hold 7.6% and 7.0%, respectively. Despite these significant holdings, no single majority interest exists as the top 25 shareholders collectively own less than half of the share register.

Insider ownership at Ford Motor is also substantial, valued at US$535m, which suggests alignment with other shareholders' interests. The general public holds a considerable 41% stake in the company, primarily consisting of individual investors who can collectively impact company policies.

In order to fully understand Ford's prospects, it is vital to consider factors such as risks, analyst forecasts, and ownership data. These elements provide a comprehensive overview of the company's current situation and potential future performance.

InvestingPro Insights

InvestingPro's real-time data and insights offer an additional layer of analysis to Ford Motor Company's financial landscape. With a market capitalization of 42.27B USD, Ford is indeed a prominent player in the automobile industry. Notably, the company's P/E ratio stands at a low of 6.86, indicating that it is trading at a low earnings multiple, one of the InvestingPro Tips.

Over the last twelve months as of Q3 2023, Ford's revenue grew by 14.82%, reaching 174.23B USD. This growth, coupled with the fact that the company has maintained dividend payments for 12 consecutive years, is a testament to its stability and consistent performance. The dividend yield as of the end of 2023 was a substantial 5.68%.

InvestingPro Tips also highlight the fact that Ford's net income is expected to grow this year. This aligns with the recent 9.77% return on the company's share price over the past week. However, it is worth noting that 11 analysts have revised their earnings downwards for the upcoming period, indicating some caution in the market.

In conclusion, the InvestingPro data and insights provide a more nuanced understanding of Ford's financial performance and outlook. For more detailed analysis and additional tips, consider exploring the InvestingPro product.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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