Is Honda Motor Co. Ltd. (HMC) positioned for future growth?

Honda Motor Co. Ltd. (NYSE: HMC) stock fell -0.34% on Monday to $35.22 against a previous-day closing price of $35.34. With 1.27 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.98 million shares. During the session, the Auto Manufacturers company that operates in wider Consumer Cyclical sector, reached to the highest price of $35.29 whereas the lowest price it dropped to was $34.94. The 52-week range on HMC shows that it touched its highest point at $35.67 and its lowest point at $21.43 during that stretch. It currently has a 1-year price target of $36.28. With its current market cap of 64.13 billion, HMC has annualized dividend of $0.87 while the current yield stands at 2.48%. Beta for the stock currently stands at 0.77.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HMC was up-trending over the past week, with a rise of 3.62%, but this was up by 16.51% over a month. Three-month performance surged to 12.45% while six-month performance rose 41.28%. The stock gained 42.07% in the past year, while it has gained 54.07% so far this year. EPS is expected to grow by 13.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -8.30%.

Float and Shares Shorts:

At present, 1.66 billion HMC shares are outstanding with a float of 1.64 billion shares on hand for trading. On Aug 30, 2023, short shares totaled 2.26 million, which was 0.14% higher than short shares on Jul 30, 2023. In addition to Mr. Toshihiro Mibe as the firm’s Pres, CEO, Representative Exec. Officer & Director, Mr. Shinji Aoyama serves as its Exec. VP, Representative Exec. Officer, COO, Director & Risk Management Officer.

Institutional Ownership:

Through their ownership of 5.71% of HMC’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 2.70% of HMC, in contrast to 2.35% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in HMC with 2.44% of the stake, Dodge & Cox holds 44,228,775 shares worth 44,228,775. A second-largest stockholder of HMC, Fisher Asset Management LLC, holds 8,983,125 shares, controlling over 0.50% of the firm’s shares. Arrowstreet Capital LP is the third largest shareholder in HMC, holding 3,931,584 shares or 0.22% stake. With a 1.74% stake in HMC, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 31,492,000 shares are owned by the mutual fund manager. The Dodge & Cox Balanced Fund, which owns about 0.31% of HMC stock, is the second-largest Mutual Fund holder. It holds 5,649,400 shares valued at 182.65 million. Pioneer Equity Income Fund holds 0.03% of the stake in HMC, owning 501,230 shares worth 16.2 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, HMC reported revenue of $3.83T and operating income of $222.22B. The EBITDA in the recently reported quarter was $406.26B and diluted EPS was $87.23.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HMC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With HMC analysts setting a high price target of $46.73 and a low target of $26.99, the average target price over the next 12 months is $36.67. Based on these targets, HMC could surge 32.68% to reach the target high and fall by -23.37% to reach the target low. Reaching the average price target will result in a growth of 4.12% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

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