Key Facts on Retail Investors and Ford Motor Company
Retail investors accounted for 25% of equities trading volume in 2021, nearly double the percentage from a decade prior, according to a 2023 report by the University of Missouri-Kansas City’s School of Law. This growing influence is exemplified by Ford Motor Company (NYSE: F), which is currently the seventh most-held stock on the Robinhood platform as of July 8, trailing only Tesla, Apple, Nvidia, Amazon, Microsoft, and the Vanguard S&P 500 ETF.
Ford has sold over 43 consecutive years as the best-selling vehicle in the U.S., with its F-Series trucks leading the market. The company has committed up to $50 billion in electric vehicle (EV) investments through 2026 but recently decided to delay up to $12 billion of that spending due to tapering EV demand. Despite its historical performance, Ford’s stock has decreased by 21% over the past decade, significantly underperforming the S&P 500.
Ford’s forward price-to-earnings (P/E) ratio is around 8, while the average Shiller P/E of the S&P 500 is near its third-highest multiple in the last 154 years, making it attractive for retail investors seeking high-yield dividends amidst a pricey market.
