Ford shares close lower on Friday, company to reduce salaried workforce as part of reorganization

Ford Motor Company (F) announced last week that it planned an unspecified number of job cuts as part of a wider effort aimed at achieving cost reduction and efficiency improvement.

Ford shares closed lower for the seventh time in the past ten trading sessions in New York on Friday. The stock went down 0.33% ($0.03) to $9.12, with the intraday high and the intraday low being at $9.22 and $9.10 respectively.

Shares of Ford Motor Company have retreated 26.98% so far in 2018 compared with a 7.93% gain for the underlying index, S&P 500 (SPX).

In 2017, Ford’s stock went up 2.97%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

The US auto maker said that the reorganization “will result in headcount reduction over time and this will vary based on team and location.”

However, the company did not specify how many job positions it intended to cut. More details are to be provided by the second quarter of 2019, Ford said.

The company noted that about 70 000 salaried workers were currently employed with it worldwide.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $11.00, with a high estimate of $15.00 and a low estimate of $7.00. The median estimate represents a 20.61% upside compared to the closing price of $9.12 on October 5th.

The same media also reported that 17 out of 23 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for Fords stock are presented as follows:

R1 – $9.131
R2 – $9.142
R3 (Range Resistance – Sell) – $9.153
R4 (Long Breakout) – $9.186
R5 (Breakout Target 1) – $9.225
R6 (Breakout Target 2) – $9.240

S1 – $9.109
S2 – $9.098
S3 (Range Support – Buy) – $9.087
S4 (Short Breakout) – $9.054
S5 (Breakout Target 1) – $9.015
S6 (Breakout Target 2) – $9.000

By using the traditional method of calculation, the weekly levels of importance for Ford Motor Company (F) are presented as follows:

Central Pivot Point – $9.217
R1 – $9.343
R2 – $9.567
R3 – $9.693
R4 – $9.820

S1 – $8.993
S2 – $8.867
S3 – $8.643
S4 – $8.420