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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
S&P, Nasdaq Hit New Highs: Stock Market TodayA late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
Five Things to Consider Now If You Want to Retire in 2026To retire with confidence in the year ahead, tackle these essential tasks right now.
-
S&P, Nasdaq Hit New Highs: Stock Market Today
A late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
AMD Stock Surges on OpenAI DealAdvanced Micro Devices could see tens of billions of dollars in new revenue from the ChatGPT maker as the AI infrastructure buildout accelerates.
-
These Stocks Dipped in 2025. Do They Have Value?If you are looking to add new long-term positions to your portfolio, as you should, this is the time to examine stocks that the market shuns.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy InvestingInvesting in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's ExecutivesFeeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
Stock Market Winners and Losers of the 'Big, Beautiful' BillDefense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have MillionsPrivate market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It HelpsSaving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
