Boston, MA 01/15/2013 (wallstreetpr) – Ford Motor Company (NYSE:F) has made a lot of progress in recent history. Many investors have made wealth trading the stock since it started turning profits, thanks to the pragmatic chief executive Alan Mulally. That being said, the question that comes to mind is whether there is still room to make money with this stock.
There are key factors that can lead us to the right conclusion as regards this question. To understand the investment wisdom in Ford Motor Company (NYSE:F), looking at the company’s dividend, stock growth and investor trading history is important.
Insider trading
It is a widely known fact in Wall Street that insiders have only one reason to buy and several reasons to sell. As concerns buying, the reason behind is making many. Over the past six months, Ford Motor Company (NYSE:F) witnessed high profile insider buying in which the company’s director John Lechleiter bought 2,500 shares of the company in the open market at $17.06 per share.
We can only speculate that perhaps Lechleiter found the stock undervalued given his insider understanding of the company or maybe he is confidence that the company is progressing well towards massive profitability, perhaps both of these went into his decision. As usually, investors who track top hedge funds and insider trading stand better chances of making a kill in the stock market.
Note the insider buying happened when the stock was trading at a higher point than its current price around $16.45. This simply means that bargain investors have the opportunity to get the stock at around $5 percent cheaper than Lechleiter.
Stock growth and dividend
Ford Motor Company (NYSE:F)’s stock has witnessed impressive upside under Mulally. While the stock has risen significantly over the past 12 months, it still has room to rise further. Ford Motor Company (NYSE:F) ranks top among best dividend payers in auto industry. The company pays $0.50 annual dividend. A look at the company’s dividend history reveals compelling growth which can only indicate impressive future dividend growth.
Conclusion
All in all, investors can still make massive gains trading Ford Motor Company (NYSE:F) as the stock has attractive valuation metric as well as strong profitability metrics. It is a favorable play for long-term position.
