Ford Motor Company is a household name. The American car manufacturer has shaped the automotive industry, earning itself a reputation as a brand that delivers innovation, style, power, and value for money.
With that said, ever since the Ford shares went public over 60 years ago, the company has been a popular investment choice. But, how to buy Ford stock, and is it the right moment for such a venture?
You’ll have to stick around to find out more.
About the Company and Early History
Henry Ford built his first mock-up car in a workshop behind his home in Detroit in 1896. Seven years later, in 1903, he incorporated the Ford Motor Company.
Following several attempts to make a working piece of machinery, Ford came up with the highly successful Model T. Released in 1908, the revolutionary vehicle was regarded as the first affordable automobile. To meet the overwhelming demand, Ford introduced mass production methods that once again established the company as an industry pioneer.
In 1945, after the death of Edsel Ford (Henry Ford’s son and the president of Ford Motors), Henry Ford II took the helm. He realized that the Ford company suffered severe financial woes. So, with the help of his good friend Sidney Weinberg (informal advisor for the Ford family at the time), Henry Ford II put up a plan for the company’s stock market debut. As a result, in 1956, Ford went public, offering over 10 million shares at the price of $63. The $657.9 million Ford IPO was the largest to date.
Recent Ford business statistics
The Ford company made its mark very quickly and became desirable for investors. Throughout the years, results were better and better, to the point where Ford stocks were amongst the best-selling ones.
Following the 2019 release of the Mach E, the Ford Motor Company stock skyrocketed. So naturally, many investors wanted to be a part of the new project and wanted a piece of the new technology that Ford Motors incorporated in their business.
Ford is also known as a company that constantly invests in technologies and improvements every day. With that said, a new era has come to Ford. The era of the electric cars, commonly called EVs.
Ford has stated that its goal is for 40% of its global volume to be electric vehicles by 2030. An electric Ford Bronco is in the works now, promising a new milestone for the company.
Ford Motor Company is currently the second-largest US car manufacturer and holds fifth place globally. In 2020, the company sold 4.2 million vehicles worldwide and had around 186,000 employees at over 60 facilities worldwide.
Should I Buy Ford Stock?
The impressive history of Ford auto makes it a considerable investment choice. But is Ford stock a good buy?
Let’s see what market specialists say!
Ford stock performance
Ford Motor stocks are much cheaper than many of the newly listed EV manufacturing companies. And why is that?
Ford auto has been losing market share across the US and China, the world’s largest automotive market.
Furthermore, Ford’s gross profit has gone down significantly in the past years. In 2016, the company made just over $23 billion. However, its gross income fell to $19.1 billion in 2019. And according to Ford’s latest financial report, the company generated $12.7 billion in gross profit in 2020.
Amid this backdrop, the Ford share price kept going down, further weighed down by Covid-19 disturbances. During the pandemic, all Ford dividend payments were suspended.
All in all, according to analysts, Ford Motor stock is not a buy now because it’s extended from a proper buy zone. A “buy zone” is a term that describes a price or range of the stock for which an investor is willing to pay or invest in. You determine the buy zone by looking at the basic value of the company’s stock or the price relevant to the company’s technical trading price ranges.
And how much is Ford stock worth now?
The shares closed June 21’s trading session 1.69% down at $14.52. Yet, the company is up a whopping 70.41% in the year to date.
Ford stock forecast
Analyst projections for the F stock are generally upbeat. The 19 CNNMoney analysts offering 12-month price forecasts for Ford Motor have a median target of $16.00. This represents a 10.19% increase from the last price of $14.52.
How to Buy Ford Stock
Buying a Ford stock goes in two different ways. First, you can purchase it through a stock brokerage company and pay a processing fee. Second, you can buy shares directly from the Ford motor company.
Let’s see how these options work!
Investing through a stock brokerage agency
If you’ve decided you want to go with a broker, these are the steps:
- Choose a stock brokerage — decide which quality you want from a broker (low fees, high-quality market research, or investment advice) and choose the platform that suits you best. Platform reviews can help you when making a choice. Notably, some brokers are tailored toward beginners, while others are designed with seasoned investors in mind. So consider your experience level, too.
- Open a trading account — go to the agency’s website and click the “Open account” button, then choose a preferred account type, enter your info, confirm it on your email, and you’re set to go.
- Deposit funds in your account — go to the broker’s website and deposit funds via one of the supported means.
- Access your trading platform — go to the website and log in with the details provided by your agent.
- Buy Ford stock — open the market watch of your trading platform and look for Ford, Ford Motor Company, or F, which is the Ford stock symbol.
Purchasing stock directly from Ford
Here are the steps you’ll need to follow if you wonder how to buy Ford stock directly from the company:
- Go to the Ford.com website.
- Click on the “Investors” tab — it redirects you to a new page for investors.
- Select “Buy Ford Stock” from the Ford “Investor Relations” page.
- Click the “Buy now” button — you need to spend at least $500.
- Click “Create Login” — when you get to the page that loads up, you need to enter a ticker number, your social securities number, and ZIP code.
- Add your payment information and enter the amount of money you want to spend.
- Submit everything, and you’re done.
Ford Motor Company is one of the oldest US car manufacturers. Despite its lackluster financial performance in the past few years, the company’s pivot to electric vehicles is a promising move towards future growth.
The Ford stock price forecast is also generally positive. But is Ford a good stock to buy now?
According to market analysts, you would be better off waiting a little bit and purchasing F shares when they reach a proper value. Thus, you may consider using stock screener tools that can help you grasp the best investment opportunity.
Ford company decided to suspend dividends from March 2020 onwards because of the Covid-19 pandemic.
The last time Ford Motors paid dividends was on January 30, 2020.
Ford’s current net worth is $180 billion.
In 1956 Ford’s IPO was $657 million. This was the largest common stock offering to date.
Ford has over 71 million Class B shares and around 1.1 billion common company’s stock.
The ticker symbol for Ford is “F”.
The Ford stock price is low due to its shrinking market share and lackluster financial results in the last few years. Ford’s gross income went down by more than 33% in 2020. Nevertheless, the year marked a turnaround for the company, and the stock is now climbing back up, making many aspiring investors look into how to buy Ford stock.