Ford Motor Co (F) said earlier this week that its financial services arm, Ford Credit, would draw gradually to a close its operations in Brazil and Argentina.
The company expects to take a non-cash charge of up to $375 million, it said.
“The charges will primarily be non-cash, including up to $365 million of foreign currency translation losses (to be treated as a special item) expected to be recognized upon the sale, transfer, or substantially complete liquidation of Ford Credit’s subsidiaries in Brazil and Argentina,” the auto maker said in a SEC filing.
Ford also said that it would pay nearly $10 million in cash for employee separations.
Ford shares closed higher for the fifth time in the past ten trading sessions in New York on Tuesday. The stock went up 0.33% ($0.05) to $15.01, after touching an intraday high at $15.20. The latter has been a price level not seen since June 25th ($15.52).
Shares of Ford Motor Company have risen 70.76% so far in 2021 compared with a 14.26% gain for the benchmark index, S&P 500 (SPX).
In 2020, Ford Motor Co’s stock went down 5.48%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 9 out of 16 surveyed investment analysts had rated Ford Motor Co’s stock as “Buy”, while 6 – as “Hold”. The median price target on the stock stands at $15.44.
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