The value of Ford stock decreased during the October 21st, 2019 – October 25th, 2019 timeframe. Shares closed the week at $8.72 per share, which represents a decrease of $0.57 per share, or about 6 percent, compared to the prior week’s closing value of $9.29.
Ford shares saw the following movement during the week:
- Monday, October 21st: Ford stock opened the day (and the week) at $9.19 and closed at $9.03
- Tuesday, October 22nd: Ford stock opened at $9.01 and closed at $9.07
- Wednesday, October 23rd: Ford stock opened at $9.01 and closed at $9.21
- Thursday, October 24th: Ford stock opened at $8.87 and closed at $8.60
- Friday, October 25th: Ford stock opened at $8.67 and closed the week at $8.72, or $0.57 lower than last week
The decrease in Ford stock value last week effectively cancels out the 6 percent growth experienced the week prior. Before that, Ford stock saw a weekly gain, which was preceded by three consecutive weeks of declines that we believe is the result of lackluster third-quarter 2019 sales performance. Even so, the decrease in Q3 2019 sales volume was to be expected as the automaker overhauls its key crossover models – the Escape and Explorer. A model redesign typically results in a sales volume decline as inventory of the outgoing model is sold out before the all-new replacement model builds stock.
By comparison, shares of Ford’s cross-town rival – General Motors Company – increased $0.57 per share, or nearly 2 percent, during the October 21st, 2019 – October 25th time frame. The increase comes on the heels of GM and the UAW coming to an agreement on labor terms. For its part, Ford has made “significant progress” in negotiating with the UAW.
We remain interested in seeing how Ford stock performs throughout the rest of 2019, especially in light of various actions by the Dearborn-based automaker to optimize its business by discontinuing all sedans to focus on more profitable crossovers, SUVs, and pickup trucks in the North American market, while at the same time investing in resource-intensive autonomous vehicle technologies like its Argo AI autonomous service as well as electric vehicles. Both initiatives have yet to result in a positive ROI for any automaker.
It’s worth noting that The Blue Oval started both efforts much later than its direct rivals. For instance, FCA was the first to discontinue most of its sedan portfolio and General Motors started to invest heavily into EVs and autonomous vehicles earlier than The Blue Oval. In July, The Blue Oval announced details of its partnership with Volkswagen that would result in VW investing in Ford’s Argo AI venture. In addition, Ford will soon unveil its first dedicated EV model, a Mustang-inspired, rear-drive crossover that we believe will be called Mach-E.