(Bloomberg) -- Ford Motor Co. shares jumped sharply on Thursday, driving the price to the highest since 2014, after the automaker boosted its full-year profit forecast and restored its dividend.
The stock surged as much as 13% to $17.58 in New York, their largest intraday advance since June 2020, before paring some of the gains to close up 8.7%. Ford shares are now up 92% this year, more than triple the increase for rival General Motors Co.
The rally followed the second increase to the automaker’s forecast in as many quarters as it pushes forward with investments in electric vehicles and benefits from an easing up in the shortage of semiconductors.
Ford’s upbeat stance on the supply turmoil allowed investors a sigh of relief after GM earlier on Wednesday struck a cautious note, saying shortages can last into late next year.
“While just about every company reporting earnings has lamented about the semiconductor shortage impacting their business, in Ford’s earnings report last night, the company took a more constructive tone,” Bespoke Investment Group noted on Thursday. And while Ford did not say the shortages were behind the company, “it was nice to hear some positive news for a change.”
The shares also got a boost from Ford’s decision to restore its dividend, which was suspended in March 2020 due to the coronavirus pandemic.
This latest surge in Ford shares also takes the company close to a historically significant metric. On former CEO Alan Mulally’s last day at the helm, June 30, 2014, the stock closed at $17.24 and since then has never closed above that price. Whenever that changes, Ford shares will finally be in the green for the first time since the retirement of the man who is considered to have saved Ford.
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