The Under-the-Radar Stock Big Money Is Quietly Buying Up
Institutional investors have long been interested in Ford's lucrative dividend, but now there could be new reasons for Wall Street's interest in Ford.
Overview
When all is said and done, the global automotive industry might evolve and transform more over the next decade than it has in the past century. Electric vehicles (EVs) are rapidly advancing; vehicles are becoming more software defined, enabling developments like over-the-air updates; automakers are investing heavily in artificial intelligence (AI) and driverless cars, and more services. And of course, subscriptions are adding value to the daily commuter. It's an exciting time in the industry, and margins should rise on the road ahead.
When investing in the automotive industry, names such as Tesla (NASDAQ: TSLA), Rivian (NASDAQ: RIVN), BYD Co., or the Italian juggernaut Ferrari (NYSE: RACE) probably jump to mind, but institutional money is actually pouring into legacy auto Ford Motor Company (NYSE: F). There was nearly $7 billion of institutional buying of Ford stock during the second quarter of 2026 alone, more than during all of 2025. Here's a look at what's likely driving the move into Ford stock.
Details
Of course, there are plenty of variables and reasons that could be driving the renewed interest in Ford, but here are two major developments that could be behind it. First, we have to consider that investors and analysts are finally getting raw data that Ford is fixing one of its biggest and most costly problems: vehicle quality. Ford ranked above all competitors in a category it didn't want to win in 2025: manufacturer with most recall campaigns. Ford topped the list with 153 recall campaigns last year, covering nearly 13 million vehicles. Ford had more recall campaigns in the U.S. than any competitor during each of the past five years except in 2024 when Stellantis took the crown briefly.
Source
Originally published at www.fool.com.