According to a report by the Detroit Free Press earlier this week, the US Justice Department has requested documents associated with the transmission used in nearly 2 million Ford Fiesta and Ford Focus vehicles, which have been sold since 2010.
Ford shares closed lower for a second consecutive trading session in New York on Thursday. The stock went down 0.34% ($0.03) to $8.89, after touching an intraday low at $8.88, or a price level not seen since November 1st ($8.64).
Shares of Ford Motor Company have risen 16.21% so far in 2019 compared with a 23.07% gain for the benchmark index, S&P 500 (SPX).
In 2018, Ford Motor Co’s stock went down 38.75%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.
The Detroit Free Press cited a subpoena, issued in April in Case No. 126 in front of a District of Columbia grand jury, which demanded “all documents, communications and electronically stored information” related to Ford’s actions involving the DPS6 PowerShift transmission.
A spokesperson for Ford said that a number of actions had been taken by the company in an attempt to improve transmission performance. Those include warranty extension for clients from between 5 years/60,000 miles and 7 years/100,000 miles.
Analyst stock price forecast and recommendation
According to CNN Money, the 15 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $10.00, with a high estimate of $13.00 and a low estimate of $8.00. The median estimate represents a 12.49% upside compared to the closing price of $8.89 on November 7th.
The same media also reported that at least 9 out of 16 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.
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