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Ford shares close higher on Tuesday, auto maker’s financial services arm to close down operations in Argentina, Brazil

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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