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Jefferies Rated Ford Motor as ‘Underperform’

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Price movement

Ford Motor (F) has a market cap of $48.3 billion. It rose by 1.1% to close at $12.31 per share on August 9, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.1%, -6.2%, and -7.7%, respectively, on the same day. Ford is trading 5.8% below its 20-day moving average, 4.9% below its 50-day moving average, and 4.6% below its 200-day moving average.

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Related ETF and peers

The Guggenheim Multi-Asset Income ETF (CVY) invests 0.95% of its holdings in Ford Motor. The ETF tracks the Zacks Multi-Asset Income Index. The index aims to outperform the Dow Jones US Select Dividend Index using US stocks, ADRs, REITs, MLPs, CEFs, preferred stocks, and royalty trusts. The YTD price movement of CVY was 8.9% on August 9.

The market caps of Ford Motor’s competitors are as follows:

  • Toyota Motor Corporation (TM): $194.2 billion
  • General Motors (GM): $47.9 billion

Ford Motor’s rating

Jefferies has initiated the coverage of Ford Motor with an “underperform” rating and set the stock price target at $10.0 per share. Seaport Global Securities has initiated the coverage of Ford Motor with a “buy” rating and set the stock price target at $20.0 per share.

Sales of Ford Motor in July 2016

Ford Motor reported total vehicle sales of 216,479 units, a fall of 2.8% from July 2015.

Sales by brand:

  • Ford brand reported sales of 207,381 units, a fall of 2.7% from July 2015. Its Focus car, Explorer SUV (sports utility vehicle), Escape SUV, and Taurus car sales fell by 17.9%, 22.2%, 10.2%, and 44.3%, respectively.
  • Lincoln brand reported sales of 9,098 units, a fall of 4.6% from July 2015.

Sales by type:

  • cars: 59,854 units, a fall of 9.3% from July 2015
  • SUVs: 69,521 units, a fall of 5.6% from July 2015
  • trucks: 87,104 units, a rise of 4.8% from July 2015

The breakdown of sales in China is as follows:

  • Ford and its joint ventures reported sales of 88,189 units, a rise of 15.0% from July 2015
  • Changan Ford Automobile (CAF) reported sales of 69,074 units, a rise of 20% from July 2015, and sales of 503,719 units year-to-date, a rise of 11.0% from the same period last year
  • Jiangling Motor (JMC) reported sales of 17,748 units, a rise of 6% from July 2015, and sales of 139,262 units YTD, a fall of 5% from the same period last year

In the next part of this series, we’ll discuss BorgWarner (BWA).

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