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

Honda Motor Co., Ltd. (NYSE:HMC)’s share price 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 traded.

A number of other equities analysts have also recently weighed in on HMC. Nomura raised Honda Motor to a “strong-buy” rating in a report on Tuesday, December 9th. BNP Paribas Exane started coverage on Honda Motor in a research report on Thursday, February 12th. They issued an “underperform” rating and a $25.00 price objective for the company. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Honda Motor in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $25.00.

Key Honda Motor News

Here are the key news stories impacting Honda Motor this week:

• Positive Sentiment: Management is refocusing product plans and boosting strategic emphasis on markets like India, which could improve capital efficiency and margins over time as Honda trims uncompetitive EV projects. Honda Cancels 0 SUV, Sedan As EV Plans Shift – India Gains Strategic Importance
• Neutral Sentiment: Honda filed an official notice revising consolidated results and disclosing recording of losses tied to the electrification strategy review — this is the company’s formal disclosure of actions and estimates. PR Newswire: Notice Concerning Recording of Losses…
• Negative Sentiment: Honda booked/announced a potential one‑time charge of up to $15.7 billion related to scaling back EV development, and warned this reassessment will produce its first annual loss in about 70 years as a listed company—directly pressuring earnings and capital. Honda takes a $15.7 billion hit as EV retreat continues to batter legacy automakers
• Negative Sentiment: Honda downgraded its FY2025/26 profit outlook to a loss (¥420–690bn) after the EV review; brokers and markets reacted with downgrades and share selling. This reduces near‑term EPS visibility and could lower investor confidence. Honda expects FY2025/26 loss of up to $4.3 bln…
• Negative Sentiment: Honda canceled at least three EV launches for the U.S., citing tariffs and intensified competition from Chinese EV makers—actions that signal both execution risk in the EV transition and potential loss of market share in fast-growing segments. Honda scraps 3 EVs planned for the US…
• Negative Sentiment: Analyst reaction turned bearish: Morgan Stanley downgraded Honda from overweight to equal weight, reflecting weaker near‑term profit prospects and higher execution risk after the charge and strategy shift. Finviz / StreetInsider: Morgan Stanley Downgrades Honda

Institutional Investors Weigh In On Honda Motor

Several large investors have recently bought and sold shares of HMC. Fisher Asset Management LLC boosted its stake in shares of Honda Motor by 2.0% in the third quarter. Fisher Asset Management LLC now owns 10,572,505 shares of the company’s stock worth $325,633,000 after acquiring an additional 205,016 shares during the last quarter. Auto Owners Insurance Co raised its stake in Honda Motor by 5,004.4% in the 4th quarter. Auto Owners Insurance Co now owns 8,583,102 shares of the company’s stock valued at $25,303,000 after purchasing an additional 8,414,952 shares during the last quarter. Mondrian Investment Partners LTD purchased a new position in Honda Motor in the 3rd quarter valued at $136,637,000. Bank of America Corp DE lifted its holdings in Honda Motor by 34.8% in the 3rd quarter. Bank of America Corp DE now owns 4,200,280 shares of the company’s stock valued at $129,369,000 after purchasing an additional 1,083,245 shares in the last quarter. Finally, Donald Smith & CO. Inc. boosted its stake in Honda Motor by 28.7% during the 4th quarter. Donald Smith & CO. Inc. now owns 2,648,828 shares of the company’s stock worth $78,087,000 after purchasing an additional 590,128 shares during the last quarter. 5.32% of the stock is currently owned by hedge funds and other institutional investors.

Honda Motor Price Performance

The firm has a market cap of $40.73 billion, a PE ratio of 10.40, a price-to-earnings-growth ratio of 1.52 and a beta of 0.37. The stock’s fifty day moving average price is $30.16 and its 200-day moving average price is $30.90. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.36 and a quick ratio of 1.09.

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

About Honda Motor

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.