Insiders are Selling Shares in This Iconic Auto Company

Ford (NYSE:F) executives have been large sellers of stock recently.  Ford’s stock has declined about 10% year-to-date, versus a 5.5% increase in the S&P 500 (NYSE:SPY).  Its market capitalization is $57.35 billion, its price-to-earnings ratio is 9.11 and it earned $1.66 per share last year.  It has $20.31 billion in cash on its balance sheet, which translates into $5.37 in cash per share; however, it also has $103.99 billion in debt.  It’s not clear how Ford plans to finance that debt over the coming years.

Finally, its book value per share is -$0.18, which is hardly an auspicious sign of the company’s financial health.  Recall that the book value of a company is the amount of money that its common shareholders would receive after all assets are liquidated and its debtors are paid.  In effect this suggests that shareholders would lose $0.18 per share they own if the company were liquidated and creditors’ claims settled. 5.6% of its shares are sold short.

Following is a summary of its executives’ recent insider transactions:

  • Nicholas J. Smither, who is a Group Vice President, exercised 48,000 options at a cost of $12.89 per option and subsequently sold 27,094 shares at a market price of $18 per share, for net proceeds of -$131,078.  He now holds 100,065 shares, or less than 0.01% of the 3,780,000,000 shares outstanding.
  • Ziad S Ojakli, who is a Group Vice President, exercised 109,829 options at a cost of $7.64 per option and subsequently sold 109,829 shares at a market price of $17.62, for net proceeds of $1,095,556.  He now holds 81,820 shares, or less than 0.01% of the 3,780,000,000 shares outstanding.
  • David G. Leitch, who is a Group Vice President & General Counsel, exercised 56,179 options at $7.55 per option and subsequently sold 56,179 shares at a market price of $17.85 per share, for net proceeds of $578,644.  He presently holds 62,254 shares, or less than 0.01% of the 3,780,000,000 shares outstanding.
  • Mark Fields, who is an Executive Vice President, exercised 507,747 options at a cost of $10.11 per option, and subsequently sold 439,681 shares at a market price of $17.97, for net proceeds of $2,768,028.  He presently holds 247,398 shares, or less than 0.01% of the 3,780,000,000 shares outstanding.
  • Susan M. Cischke, who is a Group Vice President exercised 21,000 options at a cost of $7.55, for a total cost of $158,550.  She presently holds 125,667 shares in the company, or less than 0.01% of the 3,780,000,000 shares outstanding.

Competitors to Ford include General Motors (NYSE:GM), Toyota (NYSE:TM), Tesla (NASDAQ:TSLA) and Honda (NYSE:HMC).

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