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
-
A Guide to Music Streaming ServicesDeals Our guide to music streaming services from Spotify to Amazon Music, Tidal to Apple Music and how to find music streaming deals.
-
Stock Market Today: Markets Reflect Global UncertaintyExuberance fades as investors confront micro challenges and a murkier macro environment.
-
Stock Market Today: Markets Reflect Global Uncertainty
Exuberance fades as investors confront micro challenges and a murkier macro environment.
-
What's Better Than Investing in Crypto? These 'Boring' PicksCryptocurrency may be good for a thrill, but older investors are better off with assets like bonds, guaranteed annuities, CDs and maybe dividend-paying stocks.
-
Four Actions to Lessen Retirement Stress for Women (and Men)Saving for retirement is anxiety-inducing for everyone, especially women. Following this four-part action plan can help improve your financial security.
-
Year-End Retirement Tax Planning Actions if You Have $1 Million or MoreConsider implementing these four strategies before December 31 to potentially improve your tax situation for this year and the future.
-
Five Simple Strategies to Ensure a Happy RetirementEmployer retirement plans are great, but individual responsibility plays a huge role in retirement success. Here's how to empower yourself.
-
25 Financial Moves to Consider Before December 31Tidying up your financial house before the New Year kicks off will put you in a great position to have a financially satisfying and successful 2025.
-
Five Side Hustles You Could Turn Into a Full-Time BusinessYou might be able to capitalize on your expertise in ways you haven't thought of, possibly even leading to quitting your 9-to-5 job to do what you love.
-
Stock Market Today: Nasdaq Nabs New High After Jobs DataThe S&P 500 also closed at its highest level ever, while the Dow Jones Industrial Average was pressured by another down day for UnitedHealth stock.
