Over 1 million Honda (HMC, $27.24) vehicles recalled over faulty airbags
On Tuesday, Honda Motors announced it will recall about 1.1 million Honda and Acura vehicles in the U.S. over issues of defective Takata airbags on the driver’s sides. The recall was occasioned by a Honda Odyssey crash where the front airbag deployed and injured the driver’s arm.
Previously, the recalled vehicles were repaired using specific Takata desiccated replacement inflators (PSDI-5D) or entire replacement airbag modules containing these inflators. But an investigation revealed that manufacturing issues at Takata’s Mexico facility introduced excessive moisture into the inflator during assembly, leading to the problem.
Free repairs would begin with immediate effect with replacement parts being made by other suppliers.
This recall is not the first of its kind as automakers in the U.S. have repaired more than 7.2 million defective Takata air bag inflators in 2018. The companies have now ramped up efforts to track down parts in need of replacement.
According to the company, the total number of recalled inflators is expected to be around 21 million in about 12.9 million Honda and Acura vehicles that have been subject to recall for replacing Takata front airbag inflators in the United States.
Momentum Indicator for HMC turns negative, indicating new downward trend
HMC saw its Momentum Indicator move below the 0 level on April 02, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 87 similar instances where the indicator turned negative. In of the 87 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for HMC turned negative on April 01, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
HMC moved below its 50-day moving average on April 16, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HMC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HMC advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
HMC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 223 cases where HMC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.747) is normal, around the industry mean (6.005). P/E Ratio (9.746) is within average values for comparable stocks, (18.064). Projected Growth (PEG Ratio) (3.655) is also within normal values, averaging (5.553). Dividend Yield (0.028) settles around the average of (0.043) among similar stocks. P/S Ratio (0.474) is also within normal values, averaging (74.209).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HMC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
Manufactures automobiles and related components, engages in lawnmowers and generator production
Industry MotorVehicles