Why Ford Stock Is Falling despite Strong May Sales


Nov. 20 2020, Updated 12:25 p.m. ET

Ford stock

In the week ended June 23, 2017, Ford Motor Company (F) stock settled at $11.04 with a weekly fall of ~1.6%. 

Last month, the stock posted a fresh 52-week low of $10.67, after which its results became mixed. Let’s find out what could be driving Ford stock these days.

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Sales improved in May

In May 2017, Ford’s US sales rose 2.2%, compared to an industry-wide sales fall. Also, Ford’s May US sales data were higher than the sales data of its competitors (XLY) General Motors (GM), Toyota Motor (TM), and Fiat Chrysler Automobiles (FCAU).

Despite these gains, Ford stock has fallen ~0.7% as of June 23 on a month-to-date basis. Clearly, the company’s strong May US sales data haven’t been able to impress investors. Ford’s profit margins have fallen in the last few quarters, which could be the primary reason for concern among investors.

In May 2017, Ford named James Hackett as its new CEO effective immediately. Previously, Hackett served as the head of the company’s Smart Mobility segment. 

Hackett replaced Mark Fields as the company’s CEO. In the last few quarters, Fields had been facing criticism from experts due to Ford’s management’s inability to rebuild investors’ confidence.

Ford’s weekly technicals

An immediate resistance in Ford stock lies near $11.35, followed by a key horizontal resistance near $13.40. On the downside, a critical support in Ford stock lies near $10.70.

Continue to the next article to learn how Fiat Chrysler stock has been trading in June 2017.


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