Analyzing Ford Motor Company: Stock History and Insights

1 Analyzing Ford Motor Company Stock History Motica Lowery Capella University 5/24/2023 Table of Contents

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 2 Table of Contents ................................................................................................................. 2 Ford Motor Company Background ...................................................................................... 3 Industry Participation and Overview ............................................................................... 3 History ............................................................................................................................. 3 Mission and Platforms ..................................................................................................... 3 Products ........................................................................................................................... 4 Competitive Advantage and Competitors ........................................................................ 4 Graphical Representations of Data .................................................................................. 5 Scatterplot Interpretations ............................................................................................ 5 Histogram Interpretations ............................................................................................ 7 Descriptive Statistics ....................................................................................................... 9 Mean, Median, Mode, and Standard Deviation of the Adjusted Daily Closing Stock Price ......................................................................................................................................... 9 Mean, Median, Mode, and Standard Deviation of the Stock Volume ....................... 10 Data Analysis Summary ................................................................................................ 11 References .......................................................................................................................... 14

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 3 Ford Motor Company Background Industry Participation and Overview Ford Motor Company is a multinational automaker operating in the automotive industry. It was founded by Henry Ford on June 16, 1903, and has its headquarters in Dearborn, Michigan, United States (Ford Motor Company, 2020). Ford is one of the largest and oldest automobile manufacturers globally and is known for its expertise in designing, manufacturing, marketing, and servicing a range of vehicles. History Ford has a rich history in the automotive industry. One of the company's most significant achievements was the introduction of the assembly line production system in the early 20th century. This innovation revolutionized the manufacturing process and allowed Ford to produce vehicles more efficiently and at a lower cost, making automobiles more accessible to the masses. Ford's Model T, introduced in 1908, became an iconic vehicle and played a crucial role in popularizing automobiles worldwide (Detroit Historical Society, 2019). Mission and Platforms Ford's mission is to provide customers with high-quality, safe, and environmentally friendly mobility solutions worldwide (Ford Motor Company, 2020). The company focuses on leveraging advanced technologies to develop innovative vehicles and services that meet evolving customer needs. Ford has been actively investing in electric vehicles (EVs) and autonomous driving technologies, aiming to create a sustainable and connected future of mobility.

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ANALYZING FORD MOTOR COMPANY STOCK HISTORY 4 Ford has developed various platforms to support its vehicle lineup. One of the notable platforms is the Ford F-150, a highly popular and successful pickup truck known for its durability and versatility ( Ford Motor Company - Reorganization and Expansion , n.d.). The company has also invested in electric vehicle platforms, such as the Ford Mustang Mach-E, an all-electric SUV, and the Ford F-150 Lightning, an electric version of its flagship pickup truck. Products Ford offers a diverse range of vehicles catering to different segments of the market. Its product portfolio includes compact cars, sedans, SUVs, trucks, and commercial vehicles. Some of Ford's notable models include the Ford Focus, Ford Fusion, Ford Escape, Ford Explorer, Ford Mustang, and Ford Expedition. The company also offers commercial vehicles such as the Ford Transit and Ford F-Series Super Duty trucks. However, “faced with plunging demand and declining profits from its passenger car lineup, Ford shifted its resources to the booming side of the market: pickups, SUVs, and crossover-utility vehicles” (Eisenstein, 2018) . The only passenger car still in production is the Ford Mustang. Competitive Advantage and Competitors Ford's competitive advantage lies in its extensive experience, brand recognition, and global presence in the automotive industry. The company has a strong reputation for manufacturing durable, reliable vehicles that appeal to a broad customer base. In the automotive industry, Ford faces competition from both domestic and international manufacturers. General Motors (GM) is one of Ford's main competitors in the United States. Other notable competitors

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 5 include Toyota, Volkswagen, Honda, Hyundai, and Nissan, which operate on a global scale and offer a wide range of vehicles across various segments. Graphical Representations of Data Scatterplot Interpretations Figure 1.1 Scatterplot of highest stock prices of Ford Motor Company based on data from Yahoo Finance ( Ford Motor Company (F) Stock Price, Quote, History & News - Yahoo Finance , n.d.). Figure 1.1 depicts the highest stock prices for Ford Motor Company from May 2018 to May 2023. The graph illustrates the correlation between two variables: the highest stock prices (measured in U.S. dollars) represented on the y-axis, serving as the dependent variable, and the passage of time (in days) depicted on the x-axis, serving as the independent variable. The stock has been trending upward since 2020. The stock had a significant peak in 2022 with its highest price of almost $26 per share. The stock has exhibited significant fluctuations and oscillations throughout its temporal trajectory and seems to frequently hold a position between $11 - $13

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 6 over time. Figure 1.2 Scatterplot of lowest stock prices of Ford Motor Company based on data from Yahoo Finance ( Ford Motor Company (F) Stock Price, Quote, History & News - Yahoo Finance , n.d.). Figure 1.2 depicts the lowest stock prices for Ford Motor Company from May 2018 to May 2023. The graph illustrates the correlation between two variables: the lowest stock prices (measured in U.S. dollars) represented on the y-axis, serving as the dependent variable, and the passage of time (in days) depicted on the x-axis, serving as the independent variable. The stock has been trending upward since 2020. The stock had a significant peak in 2022 with its highest

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ANALYZING FORD MOTOR COMPANY STOCK HISTORY 7 price of almost $25 per share. The stock has exhibited significant fluctuations and oscillations throughout its temporal trajectory and seems to frequently hold a position between $11 - $13 over time. Histogram Interpretations Figure 1.3 Histogram of the adjusted daily closing stock prices of Ford Motor Company based on data from Yahoo Finance ( Ford Motor Company (F) Stock Price, Quote, History & News - Yahoo Finance , n.d.). Figure 1.3 depicts the adjusted daily closing stock prices for Ford Motor Company from May 2018 to May 2023 into common ranges based on a bin width of 2, an overflow bin of 15, and an underflow bin of 5. The x-axis represents the intervals of adjusted closing stock prices, while the y-axis denotes the frequency of occurrences corresponding to each interval of adjusted closing stock prices. 88% of the closing stock falls within the $5 - $15 range with 35% of the closing stock falling in the $7 - $9 range and 22% falling in the $11 - $13 range. The groupings of the stock show that there is a lot of fluctuation.

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 8 The median is $8.86, and the mean is $10.01. When a set of numbers has a mean that is greater than the median, it suggests that the distribution of values is skewed toward lower values. In other words, a few relatively small values pull the median lower than the mean. This situation typically occurs when there are outliers or extreme values in the dataset that have a disproportionate impact on the mean. The median, being less affected by extreme values, provides a better representation of the "typical" value. 75% of the stock trading volume falls within the 30,000,000 – 90,000,000 range with 35% of the closing stock falling in the $7 - $9 range and 22% falling in the $11 - $13 range. The groupings of the stock show that there is a lot of fluctuation. Figure 1.4 Histogram of the stock trading volume of Ford Motor Company based on data from Yahoo Finance ( Ford Motor Company (F) Stock Price, Quote, History & News - Yahoo Finance , n.d.). Figure 1.4 depicts the stock trading volume for Ford Motor Company from May 2018 to May 2023 into common ranges based on a bin width of 40,000,000, an overflow bin of 90,000,000, and an underflow bin of 30,000,000. The x-axis represents the intervals of stock trading volume, while the y-axis denotes the frequency of occurrences corresponding to each interval of stock trading volume. The median is 56, 313, 350 and the mean is 63,654,763. When

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 9 a set of numbers has a mean that is greater than the median, it suggests that the distribution of values is skewed toward lower values. In other words, a few relatively small values pull the median lower than the mean. This situation typically occurs when there are outliers or extreme values in the dataset that have a disproportionate impact on the mean. The median, being less affected by extreme values, provides a better representation of the "typical" value. 75% of the stock trading volume falls within the 30,000,000 – 90,000,000 range with 60% of the closing stock falling in the 30,000,000 – 70,000,000. This demonstrates that the stock is traded the most in the 30,000,000 – 70,000,000 range. Descriptive Statistics Mean, Median, Mode, and Standard Deviation of the Adjusted Daily Closing Stock Price Adjusted Daily Closing Stock Price Mean 10.01 Median 8.86 Mode 8.70 Standard Deviation 3.44 The mean, representing the average value of Ford Motor Company's adjusted closing stock prices, is recorded at $10.01. This figure serves as an indicator of the market's volatility and the fluctuating position of Ford Motor Company's stock. It is worth noting that the automotive market is highly susceptible to economic conditions, as evidenced by significant events such as the 2008 economic crisis and the impact of COVID-19, along with the influence of inflation. These factors have played a significant role in shaping the stock price of Ford Motor Company.

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ANALYZING FORD MOTOR COMPANY STOCK HISTORY 10 Contrasting with the mean, the median, which signifies the middle value in the dataset, is observed to be $8.86 for Ford Motor Company's adjusted closing stock prices. This value is lower than the mean, indicating the existence of outliers on the lower end of the stock prices. Such a finding highlights the prevalence of fluctuations in the value of Ford Motor Company's stock. The mode, which represents the most frequently recurring number in the dataset, is identified as $8.70 for Ford Motor Company's stock. This implies that the stock price most commonly settles at $8.70 over the span of five years, suggesting a notable concentration around this particular value. Furthermore, the standard deviation for the adjusted closing stock prices is $3.44; a standard deviation of $3.44 with a mean of $10.01 indicates that the stock prices have varied quite a bit from the mean. In this case, the stock's prices have shown a significant level of volatility, with price fluctuations of approximately $3.44 on average. Higher standard deviations suggest greater volatility, indicating larger price swings and potentially greater risk. Mean, Median, Mode, and Standard Deviation of the Stock Volume Stock Volume Mean 63,654,763 Median 56,313,350 Mode 39,796,300 Standard Deviation 33,919,148.56 The average daily traded stock volume of Ford Motor Company, spanning from May 2018 to May 2023, is determined to be 63,654,763. This substantial mean value signifies the company's high liquidity and underscores its status as a valuable publicly traded firm. In essence,

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 11 Ford Motor Company's stock exhibits consistent market activity and a significant volume of shares being traded on a daily basis. Examining the median, which corresponds to the middle value in the dataset, we find it to be 56,313,350 for the stock volume of Ford Motor Company. Notably lower than the mean, this observation indicates the presence of outliers in the lower range of the data. These outliers imply occasional spikes in the company's daily tradable stock volume, contributing to fluctuations and highlighting the dynamic nature of the market demand for Ford Motor Company's stock. Furthermore, the standard deviation for the stock volume is calculated to be 33,919,148.56. This value, equivalent to 53% of the mean stock volume, reflects a high level of volatility within the dataset. Such a considerable standard deviation suggests a notable lack of consistency in the volume of Ford Motor Company's stock, further accentuating the unpredictable nature of its trading activity. Data Analysis Summary The valuation of a company's stock embodies the collective assessment of investors regarding its capacity to generate and expand profits in the foreseeable future. When shareholders exhibit contentment and the company exhibits strong performance, as evidenced by an upward trajectory in its share price, it is probable that the executives will maintain their positions and be rewarded with enhanced compensation packages. According to MarketBeat, Ford Motor Company has received a consensus rating of Hold. The company’s average rating score is 2.08 and is based on 4 buy ratings, 6 hold ratings, and 3

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 12 sell ratings. Ford Motor Company's stock trends serve as potential indicators of the company's overall business performance. As noted by Forbes, Ford's stock exhibits a favorable risk/reward profile due to several factors. These include the company's expansive manufacturing and distribution networks, its increasing market share in the U.S. truck market, its robust generation of free cash flow (FCF), and its strategic positioning to capitalize on legacy vehicle models and leverage its renowned brand to target emerging electric vehicle (EV) customers. After analyzing the data, the business can conclude that they are highly susceptible to economic conditions, as evidenced by significant events such as the 2008 economic crisis and the impact of COVID-19, along with the influence of inflation. Ford Motor Company operates within a fiercely competitive market where capturing additional market share poses significant challenges. However, establishing a dominant position within the electric vehicle (EV) market segment has the potential to bolster the company's stock prices. As reported by Electrek, Ford has emerged as the second best-selling EV brand in the United States, trailing only Tesla. Notably, in July 2022, Ford achieved its highest-ever EV market share of 10.9%, highlighting the company's progress and growing presence within the EV market. The awareness of stock price trends can serve as valuable insights for management in determining the optimal timing for product launches and upgrades throughout the year. By strategically capitalizing on market trends, particularly during the early and later parts of the year, companies can generate hype and drive sales, ultimately leading to an increase in gross

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ANALYZING FORD MOTOR COMPANY STOCK HISTORY 13 revenue and profitability, even during the typically slower periods of the third and fourth quarters. Analyzing the histogram of adjusted closing stock prices reveals a significant concentration of data points within the lower value range of $7 to $9, accompanied by substantial daily stock volume. This observation underscores the importance of closely monitoring the dynamics of stock price fluctuations and trading volumes, as they hold implications for the company's market positioning and investor sentiment. Considering potential investments to enhance stock value, it is worth noting that Forbes highlights the possibility of Ford's total revenues gaining momentum through increased sales of electric vehicles (EVs). Such an uptick in revenues could prompt investors to assign a higher price-to-sales ratio to Ford, rendering its stock an enticing investment opportunity. Additionally, Ford can provide reliable returns to shareholders through consistent dividend payouts, currently yielding 2.24%, along with incremental growth in annual profits (Schafer, 2022).

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 14 References Detroit Historical Society. (2019). Ford Motor Company | Detroit Historical Society . Detroithistorical.org. https://detroithistorical.org/learn/encyclopedia-of-detroit/ford- motor-company . Accessed May 20. 2023. Eisenstein, P. A. (2018, April 26). Ford to stop making all passenger cars except the Mustang [Review of Ford to stop making all passenger cars except the Mustang ]. https://www.nbcnews.com/business/autos/ford-stop-making-all-passenger-cars-except- mustang-n869256 . Accessed May 20, 2023. Ford Motor Company. (2020). History . Ford Corporate. https://corporate.ford.com/about/history.html . Accessed May 20, 2023. Ford Motor Company - Reorganization and expansion . (n.d.). Encyclopedia Britannica. https://www.britannica.com/topic/Ford-Motor-Company/Reorganization-and-expansion . Accessed May 20, 2023. Ford Motor Company (F) Stock Price, Quote, History & News - Yahoo Finance . (n.d.). Finance.yahoo.com. https://finance.yahoo.com/quote/F?p=F&.tsrc=fin-srch . Accessed May 20, 2023. F Stock Forecast, Price & News (Ford Motor) . (n.d.). Www.marketbeat.com. https://www.marketbeat.com/stocks/NYSE/F/ . Accessed May 24, 2023.

ANALYZING FORD MOTOR COMPANY STOCK HISTORY 15 Ford Wins Two 2023 Edmunds Top Rated Awards; F-150 Named Top Rated Truck for Third Straight Year and F-150 Lightning Awarded Top Rated EV Truck | Ford Media Center . (n.d.). Media.ford.com. Retrieved May 20, 2023, from https://media.ford.com/content/fordmedia/fna/us/en/news/2023/01/180/ford-wins-two- 2023-edmunds-top-rated-awards--f-150-named-top-rat.html#:~:text=Edmunds %E2%80%99%20test%20team%20recognized%20Ford%E2%80%99s%20generations %20of%20internal Johnson, P. (2022, October 4). Ford triples EV sales YOY with strong Mustang Mach-E growth and gains 3.1% electric vehicle market share . Electrek. https://electrek.co/2022/10/04/ford-electric-vehicle-sales-triple-strong-mustang-mach-e- sales/ . Accessed May 24, 2023. Schafer, B. (2022, February 12). Will Ford Be a Trillion-Dollar Stock by 2030? The Motley Fool. https://www.fool.com/investing/2022/02/12/will-ford-be-a-trillion-dollar-stock-by- 2030/ . Accessed May 24, 2023. Trainer, D. (n.d.). Ford Motor Company: Ready For Another Century . Forbes. Retrieved May 24, 2023, from https://www.forbes.com/sites/greatspeculations/2022/04/04/ford-motor- company-ready-for-another-century/?sh=5d7967aa529b . Accessed May 24, 2023.

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