Honda Motor (NYSE:HMC) Shares Gap Down on Analyst Downgrade

Honda Motor Co., Ltd. (NYSE:HMC) gapped down prior to trading on Thursday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. The stock had previously closed at $27.54, but opened at $25.93. Honda Motor shares last traded at $25.80, with a volume of 661,067 shares.

Other equities analysts have also issued research reports about the stock. BNP Paribas Exane initiated coverage on shares of Honda Motor in a research report on Thursday, February 12th. They set an “underperform” rating and a $25.00 target price for the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Honda Motor in a research report on Monday, December 29th. Finally, Nomura upgraded Honda Motor to a “strong-buy” rating in a research note on Tuesday, December 9th. One analyst has rated the stock with a Strong Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Honda Motor currently has a consensus rating of “Hold” and a consensus target price of $25.00.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in HMC. Larry Mathis Financial Planning LLC bought a new stake in shares of Honda Motor in the 4th quarter worth approximately $228,000. Advisortrust Partners LLC purchased a new position in Honda Motor in the 4th quarter worth $234,000. Auto Owners Insurance Co lifted its stake in Honda Motor by 5,004.4% in the fourth quarter. Auto Owners Insurance Co now owns 8,583,102 shares of the company’s stock worth $25,303,000 after purchasing an additional 8,414,952 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its position in Honda Motor by 998.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 9,339 shares of the company’s stock valued at $275,000 after buying an additional 8,489 shares during the period. Finally, SG Trading Solutions LLC bought a new position in shares of Honda Motor during the fourth quarter valued at about $511,000. 5.32% of the stock is owned by hedge funds and other institutional investors.

Honda Motor Stock Performance

The company has a quick ratio of 1.09, a current ratio of 1.36 and a debt-to-equity ratio of 0.65. The company has a fifty day moving average price of $30.23 and a 200 day moving average price of $30.94. The stock has a market cap of $40.36 billion, a PE ratio of 10.27, a P/E/G ratio of 1.54 and a beta of 0.37.

Honda Motor (NYSE:HMC) last issued its earnings results on Tuesday, February 10th. The company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.24. Honda Motor had a net margin of 2.34% and a return on equity of 4.01%. The firm had revenue of $29.99 billion for the quarter, compared to analysts’ expectations of $33.34 billion. Honda Motor has set its FY 2026 guidance at 1.462-1.462 EPS. Analysts expect that Honda Motor Co., Ltd. will post 3.99 earnings per share for the current year.

Honda Motor Company Profile

Honda Motor Co, Ltd. is a global manufacturer and mobility company headquartered in Minato, Tokyo, Japan, founded in 1948 by Soichiro Honda and Takeo Fujisawa. The company’s core businesses include the design, manufacture and sale of automobiles and motorcycles, along with a diverse portfolio of power products, engines and related components. Honda also operates in aviation through Honda Aircraft Company and offers financial services that support vehicle sales and leasing.

In automobiles, Honda is known for a range of passenger cars, crossovers and light trucks, and in motorcycles it is one of the world’s leading producers by volume and model breadth.