Executive Chairman William Ford Is Buying F Stock. Here’s Why.

Shares of Ford (NYSE:F) have risen more than 4% during the past five trading days following a significant insider purchase. Based on a Form 4 received by the U.S. Securities and Exchange Commission (SEC) on March 28, Ford Executive Chairman William Ford Jr. purchased 267,697 shares of F stock on March 24. The shares were purchased at an average price of $16.81. In total, the transaction amounted to roughly $4.5 million.

Ford (F) dealership sign against a blue sky.
Source: D K Grove / Shutterstock.com

Executive Chairman William Ford Buys F Stock

William Ford, the great-grandson of company founder Henry Ford, purchased the shares indirectly through a voting trust of which he is a trustee. After the purchase, Ford now owns 4.2 million shares of F stock as a trustee. Furthermore, he owns an additional 11 million shares individually through the trust.

Besides this transaction, the most recent significant insider purchase occurred on Dec. 20 when director Alexandra Ford purchased 38,789 shares. The shares were purchased at an average price of $19.33, so Alexandra is currently sitting on a loss. It should also be noted that Alexandra purchased the shares through a trust.

Insiders may sell stocks for a variety of reasons, whether it be for personal expenses, tax expenses or a loss of faith in the company. However, there’s really only one reason why insiders buy company stock: they believe it will go up.

So, are other Ford insiders bullish on their company? According to Nasdaq, insiders have purchased 1.6 million shares during the past 12 months. On the other hand, insiders have sold 2.4 million shares during the same period. All in all, the insider transactions make for a net activity of 806,255 shares sold during the past year.

Who Else Is Betting Big On Ford?

Institutional ownership is important to track, as these large investors provide liquidity and support for stocks. Based on WhaleWisdom, which tracks all 13F filers, 1,540 funds own F stock as of Q4, an increase of 16.4% from the prior quarter. In addition, 338 funds initiated new positions during the quarter, while 88 funds completely liquidated their position. With that in mind, let’s take a look at the top five institutional shareholders of F stock:

  1. Vanguard Group: 298 million shares, or 7.6% ownership
  2. BlackRock: 270 million shares, or 6.88% ownership
  3. State Street: 167 million shares, or 4.27% ownership
  4. Newport Trust Company: 148 million shares, or 3.77% ownership
  5. Geode Capital Management: 66 million shares, or 1.7% ownership

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/03/executive-chairman-william-ford-is-buying-f-stock-heres-why/.

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