Ford Motor Company Share Price Forecast December 2021 – Time to Buy F?
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Shares of American multinational automobile manufacturer Ford Motor Company (NYSE: F) are in the green today after closing at $19.87 as of December 2nd (20:22 EST). The automaker has sold more vehicles than any other automaker in the country for the 3rd month in a row. It has continued to benefit from the improved global supply of semiconductors and other key components. The announcements from the company can be seen as a direct challenge to other rival automakers such as General Motors and Tesla.
Ford Motor Company – Technical Analysis
According to the financial statement, the automaker’s market cap sits at $79.405 billion, with total assets worth $252.677 billion. Revenue for 2020 was at $127.14 billion with a profit margin of -1.01% compared to $155.90 billion in 2019.
Oscillators for Ford Motor Company such as Relative Strength Index (14)(60.85), Stochastic %K (14, 3, 3)(29.36), Channel Index (20)(27.70), Average Directional Index (14)(53.34)and Awesome Oscillator(1.340) are neutral. On the other hand, moving averages such as Exponential Moving Average (10)(19.69), Simple Moving Average (10)(19.79), Exponential Moving Average (20)(19.29), Simple Moving Average (20)(19.75) and Exponential Moving Average (30)(18.70) are indicating a buy action.
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Recent Developments
Ford and Rivian announced the termination of their joint plans to develop an EV, as the company now believes that it has the capabilities of designing and manufacturing one themselves. However, its $11.4 billion joint investment with SK Innovation, a South Korean battery maker is still on. The partnership includes the construction of a six-square-mile factory complex to make EVs and EV batteries in Kentucky, dubbed Blue Oval City as well as a $5.8 billion battery factory in Kentucky.
The company’s November U.S. sales revealed that Ford was able to gain ground while rivals continued to struggle to rebuild depleted dealer inventories. Ford also increased its U.S. market share by 13.8% in November 2021, which is 2.7% higher than last year. Bolstered by tight dealer inventories, Ford has also asked its retail customers to order the vehicles they want, just the way they want them. The company recorded almost 74,000 retail orders in November 2021 compared to 10,000 in November 2020. Almost 29% of these retail deliveries for November 2021 came from orders placed earlier in the year.
While the sales of Ford’s F-Series pickup aren’t reaching the numbers as expected by management, they are still positive. To put it into perspective, Ford recorded 60,400 F-Series truck sales in the United States, which is an increase of 14.6% from a year ago. The automaker also completed the delivery of 2582 Mavericks to U.S. customers in November. Other models such as the Mustang Mach-E, Bronco and Bronco Sport are also doing quite well.
Should You Buy F Shares?
The sales report has revealed two positive aspects for investors. The company’s third strong month in a row suggests that the Blue Oval is through the worst of its own supply chain issues. This is drastically different compared to some other automakers, including Toyota, which continue to struggle with supplies of chips and other components. The automaker is thus poised to take market share from rivals over the next few months as a result of relatively strong inventories. Additionally, some of the other models are also looking like hits. Auto investors know that the success of an automaker depends on the high demand for their latest products. In this respect, Ford meets all the criteria for an investor to pick up its shares at the moment.
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