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Ford shares dip despite outperforming auto industry in June

Ford shares dip despite outperforming auto industry in June

The recent release of the performance statistics of automakers has seemingly left a lot to be desired. Namely, Ford’s (NYSE: F) shares dipped on June 5, as the company posted results that showed it outperformed its industry in June.  

Namely, the firm managed to increase sales in the U.S. by 31.5% to 152,262 vehicles delivered in June, compared to a 4.5% decline it posted for May. While its share of the U.S. market expanded to 12.9% as the sales outperformed the industry. 

Further, for June, truck sales jumped by 26.4% year-on-year (YoY), car sales increased 62.2% YoY, SUVs increased 36.1% YoY, and finally, electric-vehicle (EV) sales jumped 76.6% YoY. The best-selling vehicles included a strong showing by their F-Series and an SUV mix. 

F chart and analysis

Shares of the company are down over 48% year-to-date (YTD), with price action well below all daily Simple Moving Averages (SMAs); just over the last month, the shares lost over 16%. 

Moreover, despite posting strong sales numbers, the shares finished the last session in the red on increased trading volume. 

F 20-50-200 SMA lines chart. Source. data. See more stocks here.

On the other hand, analysts are rating the shares as a moderate buy, with average price predictions for the next 12 months at $18.81, 67.95% higher than the current trading price of $11.20.

Wall Street F analysts’ price targets for F. Source: TipRanks    

Passable showing

Additionally, Andrew Frick, vice president of Sales, Distribution & Trucks, Ford Blue, touched on delivery despite supply chain constraints. 

“Amid industry-wide supply constraints, Ford outperformed the industry driven by strong F-Series, Explorer and new Expedition and Navigator SUV sales. Combined, these vehicles represented just over 56% of our sales in June – up about 8 percentage points from May. F-150 Lightning was America’s best-selling electric truck in June in its first full month of sales, while our overall electric vehicle sales were up 77% over last year.”

Despite having strong numbers, analysts were seemingly disappointed by the figures, as the figure climbed just 1.8% compared to the previous year.

Considering global macro issues and supply chain constraints, the numbers delivered could be viewed in a more positive light. Investors looking to add an auto stock to their portfolio may have a solid entry position if they are bullish on the auto sector as a whole.   

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