Insider Buying Signals Value in Ford Motor Co. Stock
In this article, we explore the latest Dividend Channel ”DividendRank” report, focusing on companies that saw insider buying in the past six months. Insider purchases often indicate confidence in a company’s future. Officers and directors have a unique perspective, and their investment decisions can point to undervalued stocks or promising developments. Among the companies to watch is Ford Motor Co. (Symbol: F), where Director John L. Thornton made a notable investment.
On June 6, Thornton bought 24,790 shares of Ford for a total of $299,463.20, with an average cost of $12.08 per share. Currently, investors can purchase Ford shares at a cost of $10.86 per share, which is about 10.1% less than Thornton’s purchase price. While Thornton has received $0.30 per share in dividends since the purchase, he is down 7.6% overall. On the trading day reported, Ford shares had a slight decrease of 0.27%. Below is a chart showing Ford’s share performance over the past year compared to its 200-day moving average:
Ford’s shares have fluctuated between a low of $9.49 and a high of $14.85 over the past year, with a recent trading price of $10.91. The table below summarizes insider buying activity at Ford over the last six months:
| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 06/06/2024 | John L. Thornton | Director | 24,790 | $12.08 | $299,463.20 |
The DividendRank report highlighted that Ford’s F shares offer attractive valuation and profitability metrics. For instance, with a recent price of $10.96, Ford’s price-to-book ratio stands at 1.0 and boasts an annual dividend yield of 5.47%. This is notably higher than the average yield of 4.5% for companies within the report’s coverage. The report also emphasized Ford’s consistent dividend payments and robust long-term growth rates.
According to the report, ”Dividend investors often seek out strong, profitable companies that are priced attractively. Our DividendRank formula identifies such stocks, providing a list of options worth investigating further.”
The annualized dividend from Ford Motor Co. is $0.60 per share, distributed quarterly. The latest dividend ex-date was on November 7, 2024. Below is a chart detailing Ford’s long-term dividend history, which is crucial for predicting the sustainability of future dividends:
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The views expressed herein represent the opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
