Automaking giant Ford (NYSE:F) recently unveiled some of its production numbers for August. While the numbers looked pretty good overall, it wasn’t all good news. Disappointed investors, meanwhile, sent shares down fractionally in Tuesday afternoon’s trading.
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First, the good news: Ford’s production was up 2% against this time last year and hit a total of 161,300 vehicles in August. However, the downside was that sales for August were down 7% against July’s sales. A production surplus may be in the making, which is in and of itself good news, if of a limited sort. A complete work stoppage, with the UAW on strike—which could happen in a little over a week—could be partially ameliorated by some extra production.
The numbers got stranger from there. Pickup sales increased, thanks in part to new units from the F-150 Lightning side of things. Total truck sales were up 10% against this time last year, seeing 91,705 trucks sold. However, SUV sales were on the decline, selling 5.9% fewer units at 60,790. And, while Ford is potentially preparing a new electric vehicle’s release—it just trademarked the “F-200” name—it may not be much help. The latest recall effort, geared toward fixing backup cameras, could cost over $270 million dollars.
Analysts, however, are unfazed. Analyst consensus calls Ford stock a Moderate Buy, supported by six Buy ratings, seven Holds, and two Sells. Further, Ford stock offers investors a 25.23% upside potential thanks to the average price target of $15.14.
