7 pages due by 2 days

Introduction

Ford Motor Company is listed on the New York Stock Exchange and has been trading its shares since 1956. The New York Stock Exchange is a global stock exchange market and that handles any big companies and ford motor company is also listed. For the past three years, the company has posted an average income of over 100 billion dollars annually. The company has also been posting an annual profit in revenue of over 7 billion dollars (Cole, 2020). The stock price of Ford Motors has been dipping, with the company posting its lowest price in the year 2020 of 7 dollars per share. This was largely due to the coronavirus pandemic that affected the economy of all companies globally.

In 2018, Ford Motor Company posted an opening price of 12.66 dollars per share. The year low was 7.63 dollars per share, and a high of 13.23 per share with an average stock price of 10.40 per share, and the year closed at 7.65 dollars per share. The company posted a reduction of -38.75% per share compared to the year 2017. In the year 2019, their opening price was 7.90 per share, their average stock price was 9.23 dollars per share, with a low of 7.78 dollars per share, and a high of 10.51 dollars per share, and the year closing at 9.30 dollars per share. They posted an increase of 21.57% from the previous year. In 2020, their opening stock price was 7.04 dollars per share, with a low of 4.01 dollars per share, their lowest price since the financial recession in 2008. They posted a high of 9.42 dollars per share with an average of 7.04 dollars per share and closing the year at 8.79 dollars per share. In the year 2020, they posted a net reduction in the stock price of -5.48%. The average stock price for this period was 8.42 dollars per share with the lowest stock price being 4.01 dollars per share, and the highest being 13.23 dollars per share (Bayou & De Korvin, 2017).

Ford Motor Company has initiated a stock split 8 times with the first stock split being in 1977 with 4 shares being split for 5 shares. This meant for every 4 shares owned by shareholders they now had 5 shares after the split. The latest stock split was in June 2000, where 9607 shares were split for 10000 shares. This meant for every 9607 shares owned by shareholders they now had 10000 shares (Bayou & De Korvin, 2017). At the moment the total outstanding shares of Ford Motor Company are 3.91 billion shares as of December 2020. The shares are outstanding which means they are the number of shares held by shareholders.

With the current market trend of the shares of Ford Motors that are traded in the New York Stock Exchange, I would invest in Ford Motor Company since the projections for the year 2021 and beyond show strong estimates. The year 2020 was largely affected by the coronavirus pandemic but with the vaccine available and business and the economy going back to normal, their sales could go up which means the stock price will also increase.

Comparing Ford Motor stocks and that of Chevrolet which is owned by General Motors, and is also listed in the New York Stock Exchange, Chevrolet which is owned by general motors comes out at the top. General Motors have a high share price of an average of 50 dollars per share compared to Ford's 8 dollars per share (Tedlow, 2018). General Motors also has a high market share in the United States compared to Ford Motor Company. Although Ford has a higher market share globally, General Motors still post higher revenues annually compared to Ford Motor Company. In the stock market, General Motors shares are more traded than Ford motor shares because General Motors owns several car brands including Chevrolet, Cadillac, Opel, GMC, and Buick while Ford Motor Company only owns the Ford brand.

Conclusion

Ford Motor Company is a big global motor company that is listed on the New York Stock Exchange with an average market price of 8 dollars per share. Its annual net revenue is over 150 billion dollars with profits of over 5 billion dollars annually. It has had stock split 8 times with the recent split happening in 2000 where 9607 shares were split for 10000 shares. In the last 3 years it posted a high of 13 dollars per share, and a low of 4 dollars per share in the stock exchange. Compared to General Motors, Ford is still low in stock price and stock market activity because General Motors has a large market share. Ford stocks are a good investment since projections show that in the coming years they are going to make profits and sell more units.

References

Bayou, M. E., & De Korvin, A. (2017). Measuring the leanness of manufacturing systems—a case study of Ford Motor Company and General Motors. Journal of Engineering and Technology Management, 25(4), 287-304.

Cole, A. (2020). Fundamental valuation of the General Motors Company: assessing the value in the midst of a pandemic (Master's thesis).

Tedlow, R. S. (2018). The struggle for dominance in the automobile market: The early years of Ford and General Motors. Business and Economic History, 49-62.