Ford Motor Company (F) has decided to continue suspending production at a few of its manufacturing plants due to the persistent chip shortages, according to Reuters. Shares closed at $17.46 on February 14.
The global automaker has lost 19.4% year-to-date vis-à-vis registering a 79.4% gain over the past year. A combination of semiconductor shortages, inflationary pressures, supply chain issues, and labor problems have led many companies to idle production and underperform.
Ford Cuts Production
Last week, Ford had cut production at eight of its manufacturing facilities due to the global chip shortages. This week again, Ford has been forced to idle production at a few of its assembly plants due to the shortage.
According to an email statement from Ford spokesperson Kelli Felker, this week beginning February 14, Ford will be shutting production at its Ohio Assembly Plant along with the production line for the Transit van at its Kansas City Assembly Plant.
Moreover, Ford will have scheduled downtimes at its Kentucky Truck, Chicago, and Dearborn, Michigan Truck assembly plants.
The company has warned of slow production in the current quarter triggered by the global chip shortages. In its previous quarter ending December 31, 2021, Ford reported earnings miss and revenue beat, which pushed the shares down 4.2%. Ford’s full-year fiscal 2021 revenue stood at $136 billion and earnings came in at $1.59 per share.
Ford stock has a Moderate Buy consensus rating based on 8 Buys, 7 Holds, and 2 Sells. The Ford stock prediction of $23.63 implies 35.3% upside potential to current levels.
TipRanks data shows that the News Score for Ford is currently Neutral based on 120 articles over the past seven days. 53% of the articles have a Bullish Sentiment compared to a sector average of 65% while 47% of the articles have a Bearish Sentiment compared to a sector average of 35%.
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