Short Sellers Target Ford: Why Investors Are Betting Against the Stock

Ford Motor Company (NYSE: F) is facing growing pressure as short interest in its stock surges, analysts issue fresh downgrades, and institutional investors make major shifts. The automaker, long seen as a pillar of American industry, is now under intense scrutiny as Wall Street reassesses its future.

Short Sellers Are Betting Against Ford

Short sellers are piling into Ford’s stock at an alarming rate. As of mid-February, the number of shares being shorted jumped by 37%, reaching over 161 million shares. That’s a clear sign that more investors are betting Ford’s stock will fall.

The rise in short interest suggests growing concerns about the company’s performance and its ability to navigate challenges in the auto industry, including increasing competition in the electric vehicle (EV) space and supply chain issues.

Wall Street Analysts Are Losing Confidence

Adding to the pressure, multiple analysts have downgraded Ford’s stock in recent weeks.

• Jefferies Financial Group cut its rating from “Hold” to “Underperform,” slashing its price target from $12 to $9. The firm pointed to Ford’s inventory buildup and financial uncertainty.
• Barclays lowered its rating to “Equal Weight” and dropped its price target to $11, citing concerns over weaker car pricing and possible tariffs on imports.
• Bernstein also downgraded Ford, emphasizing market uncertainties that could impact the company’s future profitability.

These downgrades have contributed to a slide in Ford’s stock price, which fell over 7% to $9.26 on February 6—the lowest level in over three years.

Institutional Investors Are Making Moves

While short sellers and analysts cast doubt on Ford’s future, institutional investors are making big decisions. Some are pulling back, while others are buying in.

• First Horizon Advisors Inc. cut its Ford holdings by 59% in the last quarter.
• Hager Investment Management Services LLC and Bank of Jackson Hole Trust have taken new positions, suggesting some investors see a buying opportunity.

This mixed response from major investors highlights the uncertainty surrounding Ford’s stock right now.

What’s Next for Ford?

Ford’s financial outlook has also raised red flags. The company’s 2025 profit projections came in below Wall Street expectations, with operating profit estimates between $7 billion and $8.5 billion, compared to the anticipated $9.3 billion.

At the same time, Ford’s balance sheet is under strain. Analysts have described its cash reserves as “robust, but not strong,” meaning the company may struggle to reward shareholders if financial pressures continue.

Final Thoughts

Ford is at a crossroads. With short sellers betting against it, analysts downgrading its stock, and institutional investors making conflicting moves, the company’s future remains uncertain. The coming months will be crucial as Ford works to regain investor confidence and prove that it can navigate the evolving automotive landscape.