Ford Motor Co (F) announced on Tuesday that it would delay plans to resume production at facilities across North America because of safety concerns for its employees.
Ford shares closed lower for a fourth consecutive trading session in New York on Tuesday. It has also been the steepest single-session loss since March 23rd. The stock went down 3.98% ($0.20) to $4.83, after touching an intraday low at $4.75, or a price level not seen since March 24th ($4.27).
Shares of Ford Motor Company have retreated 48.06% so far in 2020 compared with a 20.00% loss for the benchmark index, S&P 500 (SPX).
In 2019, Ford Motor Co’s stock went up 21.57%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.
Last week, Ford revealed plans to resume production at Hermosillo Assembly Plant on April 6th on one shift. Additionally, it said it was aiming to begin vehicle production at its Dearborn Truck Plant, Kentucky Truck Plant, Kansas City Assembly Plant’s Transit line and Ohio Assembly Plant on April 14th. But now, it seems the new dates of production resumption will be announced at a later time.
“The health and safety of our workforce, dealers, customers, partners and communities remains our highest priority,” Kumar Galhotra, president of Ford Motor Co’s North American operations, said in a statement, cited by Reuters.
On the other hand, Ford said its facility in Ypsilanti, Michigan would be opened during the week that begins on April 20th. The plant will be engaged in production of ventilators to treat COVID-19-afflicted patients.
Analyst stock price forecast and recommendation
According to CNN Money, the 14 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $6.55, with a high estimate of $12.00 and a low estimate of $3.50. The median estimate represents a 35.61% upside compared to the closing price of $4.83 on March 31st.
The same media also reported that at least 11 out of 18 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.