The United Auto Workers (UAW) will hold strike authorization votes at one or more of its Stellantis (STLA) local chapters in the coming days, UAW President Shawn Fain said in a Facebook Live on Tuesday.
"In our 2023 negotiations, we secured $19 billion in product & investment commitments from Stellantis… And now they are admitting they do NOT plan to honor those plans," Fain said in the livestream. "We are 100% within our rights and within our power to take strike action if necessary."
Fain said that once a strike is authorized at a Stellantis local, the UAW will meet with the automaker seven times and either resolve the issue or take strike action.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The UAW's announcement came after the union filed federal unfair labor practice charges against Stellantis on Monday.
"The commitments we made during 2023 negotiations span the life of the 4-year, 7-1/2 month agreement, so it is not surprising that they haven't been fully realized in the first year," said Stellantis in a statement, according to Reuters.
Is Stellantis stock a buy, sell or hold?
While Stellantis is brushing off the UAW news, up modestly in Wednesday's session, the automaker has struggled mightily on the price charts, down 30% for the year to date on a total return basis (price change plus dividends). Yet, Wall Street is mostly bullish on the consumer discretionary stock.
According to S&P Global Market Intelligence, the consensus analyst target price for STLA stock is $24.26, representing implied upside more than 59% to current levels. Additionally, the consensus recommendation is Buy.
Not everyone is all in on the large-cap stock, though. Financial services firm CFRA Research has a Hold rating on STLA with an $18 price target.
As indicated in the company's first-half earnings report, Stellantis "expects a neutral revenue backdrop, double-digit adjusted operating income margin, and positive industrial free cash flow" this fiscal year, said CFRA Research analyst Garrett Nelson in a July 25 note.
However, the stock's price struggles seem "to have largely accounted for these challenges," Nelson added. "STLA continues to trade at a steep but justified discount to automaker peers and we view a Hold rating as appropriate."
Related Content
-
Stock Market Today: Cautious Investors Let Stocks Drift LowerMarkets weigh encouraging trends for earnings and tariffs against concerning signals from U.S. consumers.
-
A Smart Way to Combat Economic RollercoastersSavings With rates on CDs remaining high for now, a CD ladder allows you to maximize your returns with flexibility to your cash when you need it.
-
Stock Market Today: Cautious Investors Let Stocks Drift Lower
Markets weigh encouraging trends for earnings and tariffs against concerning signals from U.S. consumers.
-
Buffered ETFs for a Rocky MarketBuffered ETFs provide protection during market downturns, but in exchange, your gains are capped.
-
Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them UpA midyear review of everything from spending to saving, with adjustments as needed, can set you on track to financial security. Plus, don't forget to check in on your workplace benefits.
-
Why a Law Firm Secretly Recording Client Conversations Is Wrong (and Illegal)A law firm that has been recording client conversations without the clients' knowledge or permission and has threatened employees if they speak out faces legal and ethical challenges.
-
Stock Market Today: Markets Discount Another U.S. DowngradeAfter Friday's closing bell, Moody's followed Standard & Poor's and Fitch and cut its rating on U.S. government debt.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
What's Next for Stocks After a Chaotic SpringA chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
