Honda Motor (NYSE:HMC) Cut to “Equal Weight” at Morgan Stanley

Morgan Stanley lowered shares of Honda Motor (NYSE:HMC) from an overweight rating to an equal weight rating in a research note released on Wednesday, Marketbeat Ratings reports.

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

Honda Motor Stock Down 1.2%

Honda Motor stock opened at $25.78 on Wednesday. Honda Motor has a twelve month low of $24.56 and a twelve month high of $34.89. The stock has a 50 day moving average of $30.08 and a two-hundred day moving average of $30.84. The company has a current ratio of 1.36, a quick ratio of 1.09 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $40.24 billion, a price-to-earnings ratio of 10.27, a PEG ratio of 1.44 and a beta of 0.37.

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of HMC. Caitong International Asset Management Co. Ltd purchased a new position in shares of Honda Motor in the third quarter valued at $26,000. WealthCollab LLC boosted its position in shares of Honda Motor by 66.2% in the 2nd quarter. WealthCollab LLC now owns 916 shares of the company’s stock worth $26,000 after buying an additional 365 shares in the last quarter. Newbridge Financial Services Group Inc. acquired a new stake in Honda Motor in the 2nd quarter valued at about $29,000. Sound Income Strategies LLC purchased a new position in Honda Motor during the 4th quarter valued at about $33,000. Finally, Lodestone Wealth Management LLC purchased a new position in Honda Motor during the 4th quarter valued at about $32,000. Hedge funds and other institutional investors own 5.32% of the company’s stock.

Key Stories Impacting Honda Motor

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

• Positive Sentiment: Motorcycle and other non‑EV businesses are still contributing steady results, which analysts say could help cushion overall earnings as Honda reshapes its EV approach. 2 Vehicle Manufacturer Stocks to Watch: Honda and REV Group
• Neutral Sentiment: Honda filed an official notice about recording losses from its electrification strategy reassessment and revised consolidated financial forecasts for the year. This is the company’s formal disclosure of the charges and guidance changes. PR Newswire: Notice Concerning Recording of Losses
• Negative Sentiment: Honda said it will take up to a $15.7 billion write‑down tied to its EV business after reassessing product plans and investments — a headline charge that drove the market reaction. Reuters: $15.7 billion EV writedown
• Negative Sentiment: The company warned the reassessment could push it to its first annual loss in nearly seven decades, and it cut FY2025/26 guidance to a loss of roughly ¥420–690 billion (about $2.6–4.3 billion). That outlook revision amplifies near‑term earnings uncertainty. Reuters: FY2025/26 loss guidance
• Negative Sentiment: Honda cancelled several planned EV launches for the U.S. market (citing tariffs and intense competition from Chinese EV makers), signaling a strategic retreat that could reduce future EV revenue potential. TechCrunch: Scrapped U.S. EV launches
• Negative Sentiment: Market reaction: shares have moved lower across Tokyo and U.S. markets on the combination of the write‑down, guidance cut and cancelled models; analysts are reassessing profit forecasts and the competitiveness of Honda’s EV roadmap against Chinese rivals. MSN: Shares plunge as write‑down triggers first annual loss since 1957

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.