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Barclays Downgrades Fiat Chrysler to ‘Underweight’

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Price movement 

Fiat Chrysler Automobiles (FCAU) has a market cap of $7.4 billion. It rose by 0.35% to close at $5.70 per share on July 6, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -5.9%, -18.7%, and -59.3%, respectively, on the same day.

FCAU is trading 13.8% below its 20-day moving average, 20.0% below its 50-day moving average, and 41.9% below its 200-day moving average.

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Related ETF and peers

The Vanguard FTSE Developed Markets ETF (VEA) invests 0.10% of its holdings in Fiat Chrysler. The ETF tracks a market-cap-weighted index of large-cap and mid-cap stocks from developed markets outside the United States, dynamically transitioning to include small caps and Canadian stocks. The YTD price movement of VEA was -3.6% on July 6.

The market caps of Fiat Chrysler’s competitors are as follows:

  • Toyota Motor (TM): $164.3 billion
  • Ford Motor (F): $49.4 billion
  • Tesla Motors (TSLA): $30.7 billion

Fiat Chrysler’s ratings

Barclays has downgraded Fiat Chrysler Automobiles’ rating to “underweight” from “overweight” due to the uncertainty of a Brexit impact on the auto sector. It also reduced the stock price target to 5.5 euros from 10 euros.

TheStreet Ratings rated the stock a “hold” with a score of C.

Fiat Chrysler’s sales in June 2016

Below is a breakdown of Fiat Chrysler’s US sales in June 2016:

  • Fiat Chrysler US: 197,000 units, an increase of 6.5% over June 2015
  • Jeep: 84,000 units, an increase of 17.0% over June 2015
  • Chrysler: 25,000 units, a decline of 19.7% from June 2015
  • Dodge: 45,000 units, an increase of 3.1% from June 2015
  • Fiat: 2,544 units, a decline of 18.9% from June 2015
  • Ram: 41,000 units, an increase of 14.3% over June 2015

In the next part of this series, we’ll take a look at Toyota Motor.

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