The value of Ford stock increased during the November 25th, 2019 – November 29th, 2019 timeframe. Shares closed the week at $9.06 per share, which represents an increase of $0.17 per share, or 2 percent, compared to the prior week’s closing value of $8.89.
Ford shares saw the following movement during the week:
- Monday, November 25th: Ford stock opened the day (and the week) at $8.90 and closed at $9.00
- Tuesday, November 26th: Ford stock opened at $8.98 and closed at $9.01
- Wednesday, November 27th: Ford stock opened at $9.03 and closed at $9.10
- Thursday, November 28th: Market closed for Thanksgiving holiday
- Friday, November 29th: Ford stock opened at $9.04 and closed the week at $9.06, or $0.17 higher than last week
The minimal increase in Ford stock is welcome after two weeks of decline. Most recently, Ford share values have been rising and falling slightly from one week to the next. Earlier in the year, Ford stock saw three consecutive weeks of declines, which we believe was 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 is able to build stock.
Interestingly, two weeks ago, The Blue Oval debuted the new Ford Mustang Mach-E – an electric, four-door crossover inspired by the legendary Mustang. Set to go on sale in about a year, the vehicle represents the direction in which Ford is going as a company and where it’s taking its vehicle lineup. It also shows that Ford isn’t afraid to upend legendary nameplates. Initially, Ford stock didn’t improve in value, but this week may be a sign of increases to come. The increase in Ford stock value also comes soon after Ford quickly reached a tentative labor agreement with the UAW earlier in November.
By comparison, shares of Ford’s cross-town rival – General Motors Company – increased $0.67 per share, or 2 percent, during the November 25th, 2019 – November 29th timeframe.
It will be interesting to see 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, company announced details of its partnership with Volkswagen that would result in VW investing in Ford’s Argo AI venture. Ford’s first modern electric vehicle will be the aforementioned Mustang Mach-E.