Ford shares close higher on Wednesday, auto maker to invest over $1.45 billion in two facilities in Detroit

Ford Motor Co (F) revealed earlier this week plans to invest over $1.45 billion in two manufacturing facilities in Detroit, Michigan, and create 3 000 jobs.

Ford shares closed higher for the sixth time in the past ten trading sessions in New York on Wednesday. The stock went up 1.60% ($0.15) to $9.54, after touching an intraday high at $9.57, or a price level not seen since September 27th ($9.60).

Shares of Ford Motor Company have risen 24.71% so far in 2019 compared with a 27.30% gain for the benchmark index, S&P 500 (SPX).

In 2018, Ford Motor Co’s stock went down 38.75%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

Ford said that it intended to invest nearly $750 million in its Wayne plant to produce the Bronco and Ranger models, while creating 2 700 jobs over the upcoming three years.

Additional $700 million will be invested in Ford’s Dearborn facility in relation with manufacturing of electric and hybrid versions of its F-150 truck. 300 new jobs are expected to be created at the plant in 2020.

Previously, the US auto maker had announced plans to invest $11 billion in the production of 40 new hybrid and fully electric vehicle models by the year 2022.

Analyst stock price forecast and recommendation

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $10.00, with a high estimate of $13.00 and a low estimate of $8.00. The median estimate represents a 4.82% upside compared to the closing price of $9.54 on December 18th.

The same media also reported that at least 11 out of 18 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.