Ford Shares Surpass Analyst Target Price, Investors Consider Options
Recently, shares of Ford Motor Co. (Symbol: F) have risen above the average analyst 12-month target price of $10.14, trading at $10.17 per share. When a stock reaches an analyst’s target, they typically have two potential courses of action: they can either downgrade the stock based on valuation, or they might adjust their target price upwards. Analysts’ responses can also hinge on recent business developments that might justify the stock’s price increase. In positive company circumstances, raising the target price could be warranted.
Within the Zacks coverage universe, there are 22 different analyst targets contributing to the average for Ford Motor Co. However, this average represents a mathematical mean. Some analysts present lower targets, with one predicting a price of $8.00, while another has set a target as high as $15.50. The standard deviation among these estimates stands at $1.959.
The rationale for examining the average price target lies in the concept of “wisdom of crowds”. This approach aggregates the insights of multiple analysts to form a more accurate projection, rather than relying solely on a single analyst’s view. As Ford’s stock has surpassed the average target price of $10.14/share, this signals investors to reassess the company’s position. They must decide whether $10.14 is merely a waypoint towards an even higher target or if the valuation has become inflated, prompting them to consider selling shares. Below is a table displaying the current perspectives of analysts covering Ford Motor Co.:
| Recent F Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 4 | 5 | 5 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 13 | 12 | 10 | 10 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 4 | 4 | 4 | 4 |
| Average rating: | 3.05 | 3.05 | 2.95 | 2.95 |
The average rating displayed in the table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. Data for this analysis is sourced from Zacks Investment Research via Quandl.com. For the latest Zacks research on F, check out the report — available for free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the positions of Nasdaq, Inc.
