Shares of Fiat Chrysler Automobiles NV closed up 13 cents to $15.60 a share on Tuesday, a dime higher than Ford Motor Co. — the second time this week that shares of the Auburn Hills automaker have topped its Dearborn rival, reports The Detroit News.
Ford stock was down 8 cents Tuesday, dropping 2.6 percent during the past year, while FCA’s stock has gained nearly 75 percent since its Oct. 13 debut on the New York Stock Exchange. This week marks the first time since the listing that FCA’s stock has surpassed Ford’s.
Analysts say the stock price jump doesn’t mean much, since Ford’s market capitalization remains far ahead of FCA’s.
Ford’s relatively low stock price raised at least one question at Ford’s annual shareholders meeting last week in Delaware, but analysts remain optimistic about Ford’s fortunes through the rest of the year.
“They’ve had some medium-term pain because of some launch costs for some products,” said David Whiston, a senior equity analyst with Morningstar Inc. “But I think going forward, including this year, Ford has a lot of potential for some nice upside.”
That potential hinges on Ford’s most profitable vehicle, the new F-150 pickup. The automaker will reach full production at its two F-150 plants by the end of this quarter. Whiston said that, coupled with new models of the Edge and Lincoln MKX will help boost profit margins and stock price.
“I think things will start to change during the end of the summer,” said Barclays analyst Brian Johnson.
During Ford’s shareholders meeting, Roger Heymann, a shareholder from Rockville, Maryland, voiced concern over the company’s stock price. Executive Chairman Bill Ford responded by saying he checks the stock price daily, if not hourly.
“We’re on track for a very good year,” Ford said. “I believe the stock price will take care of itself.”
Efraim Levy, equity analyst at S&P Capital IQ, said in a recent note to investors that FCA’s stock should perform well, as profit and margins expand in 2015.
