Automobile manufacturer Honda (HMC) is recalling 294,612 vehicles with potential errors in their fuel injection electronic control unit (FI-ECU). The problem present in these vehicles can result in a stalled engine or a loss of power. Either of these issues increases the risk of a crash, explaining the reason for the recall.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Three models are affected by the Honda recall, including Acura MDX Type-S vehicles with years ranging from 2022 to 2025, Honda Pilot vehicles from 2023 to 2025, and Acura TLX Type-S vehicles from 2021 to 2025. Honda notes that only some of these vehicles are included in the recall.
Fortunately, owners won’t have to do much to get this error fixed. The issue is one with software, which Honda can repair with an update. That means a quick stop by a Honda dealership is all it will take to resolve the problem and it won’t cost owners a dime.
How This Affects HMC Stock Today
Honda investors don’t appear overly worried about the vehicle recall, which makes sense considering the simple nature of the fix. This has the stock only slipping 0.63% as of this writing with just 147,120 shares traded. This is well below its three-month daily average of 1.91 million shares. HMC stock is also down 0.04% year-to-date and has dropped 14.58% over the last 52 weeks.
Is HMC Stock a Buy, Sell, or Hold?
Turning to Wall Street, only one analyst has covered Honda stock over the last three months. 3.5-star Goldman Sachs analyst Kota Yuzawa has a Buy rating for HMC shares. However, the analyst doesn’t offer a price target for the stock, meaning there’s no potential upside to report. The lack of coverage and falling share price over the last year make it hard to recommend HMC stock.
See more HMC stock analyst ratings
