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Ford shares dip despite outperforming auto industry in June

Ford shares dip despite outperforming auto industry in June
Dino
Kurbegovic
1 month ago
3 mins read

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. Finviz.com 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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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Dino Kurbegovic
Author

Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he’s also building a micro solar power plants in his hometown.