Behind Fiat Chrysler’s Fall on May 23

Yesterday’s Consumer Pops and Drops: FCAU, TM, and TSE

(Continued from Prior Part)

Price movement

Fiat Chrysler Automobiles (FCAU) has a market cap of $8.6 billion and fell by 5.1% to close at $6.68 per share on May 23, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -11.2%, -16.6%, and -52.3%, respectively. This means that FCAU is trading 13.2% below its 20-day moving average, 13.3% below its 50-day moving average, and 39.4% below its 200-day moving average.

Related ETF and peers

The Vanguard FTSE Developed Markets ETF (VEA) invests 0.10% of its holdings in Fiat Chrysler. The ETF tracks a market-cap-weighted index of large- and mid-cap stocks from developed markets outside the US, dynamically transitioning to include small caps and Canadian stocks. The YTD price movement of VEA was -1.8% as of May 23, 2016.

The market caps of Fiat Chrysler’s competitors are as follows:

• Toyota Motor (TM)—$165 billion

• Ford Motor (F)—$51.8 billion

• Tesla Motors (TSLA)—$28.3 billion

Fiat Chrysler’s illegal use of software

Fiat Chrysler fell by more than 5.1% on May 23, 2016, after the announcement of Germany’s Federal Motor Transport Authority that Fiat Chrysler is using illegal software to manipulate emissions controls.

According to the company, it meets all the European rules for emissions. Fiat Chrysler’s regional operations are centered in Italy, and the country is responsible for testing Fiat cars under European rules.

Fiat Chrysler’s sales in April 2016

Below is a breakdown of Fiat Chrysler’s US sales in April:

• Fiat Chrysler US—199,631 units, which is a rise of 5.6% over April 2015

• Jeep—84,298 units, which is a rise of 17.5% over April 2015

• Chrysler—22,843 units, which is a fall of 17.5% from April 2015

• Dodge—43,575 units, which is a fall of 3.0% from April 2015

• Ram—45,810 units, which is a rise of 12.1% from April 2015

• Fiat—3,045 units, which is a fall of 18.9% from April 2015

Here’s the breakdown for sales in Canada:

• Fiat Chrysler Canada reported net sales of 30,108 units—a rise of 9.6% from April 2015.

• Jeep Cherokee reported sales of 3,118 units—a rise of 14.6% from April 2015.

• Jeep Grand Cherokee reported sales of 1,960 units—a rise of 88.3% from April 2015.

• Dodge Grand Caravan reported sales of 6,368 units—a rise of 76.0% from April 2015.

• Jeep reported sales of 9,040 units—a rise of 20.8% from April 2015.

In the next part, we’ll discuss Foot Locker.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Who Were the Outliers in the Consumer Space on May 23?

• Part 3 - Why Canaccord Genuity and Telsey Advisory Reduced Foot Locker’s Price Target

• Part 4 - Understanding Why Toyota Recalled So Many Vehicles