Ford Motor Company (F) Sees Labor Costs Rising Just 1.5% Annually – Less than inflation rate


Since the recession years ago, Ford Motor Company (NYSE:F) has been the one US Automaker who has risen from the ashes and taken the world by storm. Ok…. maybe not the world, but perhaps the auto industry here in the U.S. They’ve done this through smart business decisions, and these decisions continue to pay off.

Today they have announced that their labor costs will grow by just about 1.5% annually over the next four years, which is less that they project inflation to be for this time period. This is being accomplished though an agreement that they have reached with the United Auto Workers union, and it will bring their labor costs much closer to those at GM and Fiat Chrysler. Currently standing as the #2 auto maker in the U.S., it should be interesting to see if this move can help them grab the number one spot anytime soon.

The stock closed at $14.53 during the last session. It is down 8.62% since April 27, 2015 and is downtrending. It has underperformed by 7.72% the S&P500.

Out of 5 analysts covering F&M Bank (NYSE:F), 4 rate it “Buy”, 0 “Sell”, while 1 “Hold”. This means 80% are positive. $119 is the highest target while $16.44 is the lowest. The $31.93 average target is 119.75% above today’s ($14.53) stock price. F&M Bank was the topic in 8 analyst reports since August 7, 2015 according to StockzIntelligence Inc. UBS maintained the stock on October 28 with “Buy” rating. S&P Research maintained the shares of F in a report on September 25 with “Strong Buy” rating. Finally, Compass Point initiated the stock with “Neutral” rating in an August 7 report.

The institutional sentiment decreased to 1.14 in Q2 2015. Its down 0.16, from 1.3 in 2015Q1. The ratio dived, as 65 funds sold all Ford Motor Company shares owned while 351 reduced positions. 92 funds bought stakes while 383 increased positions. They now own 2.20 billion shares or 3.00% less from 2.27 billion shares in 2015Q1.

Vantage Investment Partners Llc holds 37.54% of its portfolio in Ford Motor Company for 9.12 million shares. Western Asset Management Co owns 1.13 million shares or 13.63% of their US portfolio. Moreover, Evercore Trust Company N.A. has 11.61% invested in the company for 217.51 million shares. The Missouri-based Terril Brothers Inc. has invested 8.91% in the stock. Athena Global Investors Llc, a Virginia-based fund reported 499,415 shares.

Since March 23, 2015, the stock had 0 buys, and 3 sales for $3.59 million net activity. Fleming John sold 91,576 shares worth $1.26M. Schoch David L. sold 14,903 shares worth $221,783. Leitch David G sold 140,000 shares worth $2.10M. Rowley Stuart J. sold 12,000 shares worth $197,688.

Ford Motor Company manufactures or distributes automobiles across six continents. The company has a market cap of $57.66 billion. The Firm operates in two sectors: Automotive and Financial Services. It has 12.19 P/E ratio. Automotive sector includes North America, South America, Europe, Middle East & Africa, and Asia Pacific divisions.