Ford Motor Co (F) on Wednesday reported a 9.8% drop in its quarterly vehicle sales in the United States, as higher sales of Sport-utility vehicles (SUVs) were outweighed by a slump in sales of profitable trucks.
As many as 542,749 vehicles were sold during the fourth quarter compared with 601,862 vehicles in the year-ago quarter.
Ford shares closed higher for a second consecutive trading session in New York on Wednesday. The stock went up 2.20% ($0.19) to $8.84, after touching an intraday high at $8.94, or a price level not seen since December 28th ($8.98).
In 2020, Ford Motor Co’s stock went down 5.48%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
Truck sales went down 12.5% year-on-year, while sales of passenger cars plummeted 41.1% from a year ago, as the company continued to phase out traditional sedans in North America.
Ford’s SUV sales, on the other hand, increased 4% year-on-year to 216,732 vehicles.
“Fourth quarter represented an inflection point at Ford in our transition from cars to a much greater focus on iconic trucks, SUVs and electric vehicles,” Andrew Frick, vice president at Ford’s sales in the United States and Canada, said in a statement.
“We are well positioned to see the benefits of our focused efforts throughout 2021.”
Analyst stock price forecast and recommendation
According to CNN Money, the 16 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $9.00, with a high estimate of $12.00 and a low estimate of $7.10. The median estimate represents a 1.81% upside compared to the closing price of $8.84 on January 6th.
The same media also reported that at least 13 out of 18 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 3 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
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