Ford shares fall for a fourth straight session on Tuesday, company to drop production of some models amid planned restructuring

September 5, 2018 10:15 am

According to a report by the British newspaper The Times, Ford Motor Company (F) intends to discontinue production of several of its auto models as a result of a planned operational restructuring, which the US company has already announced.

Ford shares closed lower for a fourth consecutive trading session in New York on Tuesday. The stock edged down 0.11% ($0.01) to $9.47, after touching an intraday low at $9.36, or a price level not seen since August 15th ($9.35).

Shares of Ford Motor Company have retreated 24.18% so far in 2018 compared with an 8.34% gain for the underlying index, S&P 500 (SPX).

In 2017, Ford’s stock surged 2.97%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

According to the newspaper, production of Ford’s Galaxy, Mondeo as well as S-Max models is to be dropped, so that the auto maker could focus on sport-utility vehicles.

Meanwhile, Morgan Stanley analysts said that a round of lay-offs could be on the horizon, which might affect 12% of over 200 000 Ford workers. The lay-offs might be mostly concentrated in Europe, the analysts also pointed out.

Jim Hackett, Ford’s Chief Executive, had announced in July plans to spend nearly $11 billion on business operations restructuring in Europe.

The Times also noted that Ford’s European business generated a loss of $73 million during the April-June quarter, while additional challenges for the company could lie ahead as Britain prepares to part ways with the European Union.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $12.00, with a high estimate of $15.00 and a low estimate of $7.00. The median estimate represents a 26.72% upside compared to the closing price of $9.47 on September 4th.

The same media also reported that 17 out of 23 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for Ford’s stock are presented as follows:

R1 – $9.490
R2 – $9.510
R3 (Range Resistance – Sell) – $9.531
R4 (Long Breakout) – $9.591
R5 (Breakout Target 1) – $9.662
R6 (Breakout Target 2) – $9.693

S1 – $9.450
S2 – $9.430
S3 (Range Support – Buy) – $9.410
S4 (Short Breakout) – $9.349
S5 (Breakout Target 1) – $9.278
S6 (Breakout Target 2) – $9.247

By using the traditional method of calculation, the weekly levels of importance for Ford Motor Company (F) are presented as follows:

Central Pivot Point – $9.657
R1 – $9.913
R2 – $10.347
R3 – $10.603
R4 – $10.860

S1 – $9.223
S2 – $8.967
S3 – $8.533
S4 – $8.100

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