5 Stocks Getting Crushed by Global Supply Chain Crisis

In this article, we discuss 5 stocks getting crushed by the global supply chain crisis. If you want to see more stocks that are impacted by tightening supply conditions, click 10 Stocks Getting Crushed by Global Supply Chain Crisis.

5. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 46

Year-to-Date Share Price Decline as of June 1: 37.76%

Ford Motor Company (NYSE:F) is an American manufacturer of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles, operating via three segments – Automotive, Mobility, and Ford Credit. Ford Motor Company (NYSE:F) stock has declined close to 38% YTD as of June 1. On June 2, Ford Motor Company (NYSE:F) reported May Truck sales of 74,595, down 1.4%. The May SUV sales were 76,625, dropping 4.4%, given the continued global industry semiconductor chip shortage.

On June 1, Goldman Sachs slashed the price target on Ford Motor Company (NYSE:F) to $14 from $18 and maintained a Neutral rating on the shares. He cited supply chain constraints in the near-term and weaker demand in the intermediate term. Analyst Mark Delaney issued the rating. 

According to Insider Monkey’s first quarter data, 46 hedge funds were bullish on Ford Motor Company (NYSE:F), down from 53 funds in the previous quarter. D E Shaw is the largest shareholder of the company, with 31.2 million shares worth $528.3 million. 

In its Q1 2020 investor letter, Greenlight Capital Fund highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:

“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford Motor Company (NYSE:F), lost about half its value.”