John Thornton, a director at Ford Motor Company (F), recently bought 24,790 shares. The buy increased his position by 7%, and came to a total cost of $299,463.
This is the first insider buy of 2024. The last insider buy occurred back in December, when the company’s chief EV design officer bought 182,000 shares, priced at just over $2.01 million. There have been some moderate sales by company insiders over the past year, largely following the exercise of stock options.
Overall, Ford insiders own 0.3% of shares.
The automaker’s shares have slid 12% over the past year. That’s not as bad as the 24% decline in the company’s earnings.
But sales are down, and Ford has also delayed billions of dollars in spending to build out EV production facilities.
Ford shares now trade at 6 times forward earnings, and at 0.3 times their price to sales. The reduced spending could mean that the company’s profitability improves from here.
Action to take: Shares have been range-bound this year, so investors may not see significant upside until shares break to the higher end of their range. At current prices, Ford pays a 4.9% dividend.
For traders, the July $14 calls, last trading for about $0.47, could see mid-double-digit returns, provided shares trend to the higher end of their recent trading range.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.