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magazineClear road ahead for Ford Motor as share price keeps rising
Ford Motor Company $20.50
Gain to date: 193%
Original entry point: Buy at $6.99, 13 August 2020
Saying to buy Ford shares in the middle of a restructuring during the pandemic was a calculated risk which has paid off.
The company has benefited from its own actions, refreshing the product range as it pivots to manufacturing more electric vehicles.
This seems to be working with Ford the top selling US automaker in the last two consecutive months boosting its market share.
This followed a strong third quarter earnings report where the company raised full-year guidance and restarted its dividend.
Ford has also made progress on repairing its balance sheet after a move to buy back expensive debt and improve its credit rating.
It also plans to issue green bonds to increase investment into battery technology and clean manufacturing. The bonds would have coupons of around 4%.
Furthermore, Ford holds a stake greater than 5% in electric truck maker Rivian which was scheduled to join the US stock market as Shares went to press.
SHARES SAYS: Although Ford’s shares have performed strongly, the fundamentals have also improved significantly. Remains a buy.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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