The value of Ford stock declined during the March 30th, 2020 – April 3rd, 2020 timeframe. Shares closed the week at $4.24 per share, which represents a decrease of $0.95 per share, or 18 percent, compared to the prior week’s closing value of $5.19.
Ford shares saw the following movement during the week:
- Monday, March 30th: Ford stock opened the week at $5.11 and closed at $5.03
- Tuesday, March 31st: Ford stock opened at $5.03 and closed at $4.83
- Wednesday, April 1st: Ford stock opened at $4.63 and closed at $4.40
- Thursday, April 2nd: Ford stock opened at $4.39 and closed at $4.36
- Friday, April 3rd: Ford stock opened at $4.40 and closed the week at $4.24, or $0.95 lower than the prior week
Ford Stock Factors
Ford share values continue to see historic lows amid the COVID-19 pandemic, with some of the lowest recorded values in over a decade. The current value of $4.24 is less than half the $9.42 per share value that Ford stock opened the 2020 calendar year.
The ongoing Coronavirus has resulted in the automaker temporarily shutting down production in North America as well as in other markets, and suspending its dividend as it borrows $15.4 billion.
Ford was having its fair share of issues prior to the global COVID-19 outbreak, among which were lack of profitability in several vehicle lines and in various international markets, along with quality issues in key product launches. Ford CEO Jim Hackett recently changed things up on the FoMoCo executive roster, replacing Joe Hinrichs with Jim Farley as COO, allegedly as a result of a botched rollout of the all-new 2020 Ford Explorer and Lincoln Aviator – two key models at a critical time for The Blue Oval.
By comparison, shares of Ford’s cross-town rival – General Motors Company – decreased $3.24 per share, or 16 percent – during the March 30th, 2020 – April 3rd, 2020 timeframe. Other automakers and many other publicly-traded companies outside the auto sector also experienced similar drops in value as Ford and GM.
Coronavirus-related items aside, we are interested in seeing how Ford stock will perform throughout the rest of 2020, especially in light of various actions taken by the Dearborn-based automaker throughout 2019 and into 2020. The company has taken steps to optimize its business by discontinuing all sedans to focus on more profitable crossovers, SUVs, and pickup trucks in North America, 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 much earlier than The Blue Oval. In July 2019, Ford announced details of its partnership with Volkswagen that would result in VW investing in Ford’s Argo AI venture.
In November 2019, The Blue Oval announced the new Ford Mustang Mach-E – an electric, four-door crossover inspired by the legendary Mustang pony car. 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 see any movement in value following the announcement. However, the automaker sold out the introductory Mustang Mach-E First Edition variant, which is a promising development, if it should serve as an indicator of future Ford share values.