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
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
Ask the Editor: IRAs, 401(k)s and RMDsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on IRAs, 401(k)s and required minimum distributions
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Quick Question: Are You Planning for a 20-Year Retirement or a 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
-
Don't Get Caught by the Medicare Tax Torpedo: A Retirement Expert's Tips to Steer ClearBetter beware, because if you go even $1 over an important income threshold, your Medicare premiums could rise exponentially due to IRMAA surcharges.
-
I'm an Insurance Pro: Going Without Life Insurance Is Like Driving Without a Seat Belt Because You Don't Plan to CrashLife insurance is that boring-but-crucial thing you really need to get now so that your family doesn't have to launch a GoFundMe when you're gone.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
I'm a Tax Attorney: These Are the Year-End Tax Moves You Can't Afford to MissDon't miss out on this prime time to maximize contributions to your retirement accounts, do Roth conversions and capture investment gains.
-
I'm an Investment Adviser: This Is the Tax Diversification Strategy You Need for Your Retirement IncomeSpreading savings across three "tax buckets" — pretax, Roth and taxable — can help give retirees the flexibility to control when and how much taxes they pay.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
