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Ford Taps Bike-Sharing Market with This Acquisition

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Price movement

Ford Motor (F) has a market cap of $49.0 billion. It fell 2.8% to close at $12.38 per share on September 9, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.48%, 1.1%, and -7.2%, respectively, on the same day.

F is trading 0.61% below its 20-day moving average, 2.6% below its 50-day moving average, and 2.9% below its 200-day moving average.

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Related ETFs and peers

The Guggenheim Multi-Asset Income ETF (CVY) invests 0.88% 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 (American depositary receipts), REITs, MLPs, CEFs (closed-end funds), preferred stocks, and royalty trusts. The YTD price movement of CVY was 7.9% on September 9, 2016.

The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.83% of its holdings in Ford Motor. The ETF tracks an index that selects and weights value stocks from the S&P 500 Value Index using fundamental factors, including sales, book value, and cash flows.

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

  • Toyota Motor (TM): $197.1 billion
  • General Motors (GM): $47.1 billion
  • Tesla Motors (TSLA): $29.4 billion

Latest news on Ford

In a press release on September 9, 2016, Ford Motor reported, “Ford is teaming up with major global cities – starting with San Francisco – to solve congestion issues and help people move more easily, today and in the future.”

It also noted, “The company today is announcing an agreement to acquire Chariot, a San Francisco-based crowd-sourced shuttle service, and collaborating with bike-sharing provider Motivate to expand its transportation solutions in city centers. Ford also is establishing a new City Solutions team to work with cities around the world on their transportation needs.”

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Ford’s sales in August 2016

Ford Motor (F) reported total vehicle sales of more than 214,000 units, a decline of 8.4% from August 2015.

  • The Ford brand reported sales of just more than 205,000 units, a decline of 9.0% from August 2015. This includes the Focus, Explorer, Escape, and F-Series trucks, whose sales fell 27.9%, 15.5%, 2.8%, and 6.1%, respectively. Sales of transit trucks rose 16.9%.
  • The Lincoln brand reported sales of 9,243 units, which includes MKZ cars. This is an increase of 7.0% from August 2015. MKX and SUV (sport utility vehicle) sales rose 7.1% and 49.9%, respectively.

The following is a breakdown of Ford’s sales by type:

  • Cars reported sales of ~52,000 units, a decline of 25.4% from August 2015.
  • SUVs reported sales of nearly 74,000 units, a decline of 0.84% from August 2015.
  • Trucks reported sales of more than 88,000 units, a decline of 1.6% from August 2015.

Ford reported sales of 126,834 units in Asia-Pacific, an increase of 22% from August 2015.

Sales in China were as follows:

  • Ford and its joint ventures reported sales of 96,450 units, an increase of 22.0% from August 2015.
  • Changan Ford Automobile (CAF) reported sales of 75,228 units, a rise of 26% from August 2015, and sales of 578,947 units YTD, a rise of 13.0% from the same period the previous year.
  • Jiangling Motor (JMC) reported sales of 19,951 units, an increase of 16% from August 2015, and sales of 159,213 units YTD, a decline of 3% from the same period the previous year.

For an ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.

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