Simply said, from a financial standpoint, the two sets of shares are nearly equal. Voting rights are attached to the relatively “overpriced” shares, VWAGY, but not to VWAPY. The spread between the two shares is what’s different. The spread (monthly) averaged $0.31 or 2.2% for the twelve months that ended in March 2020. The spread (daily) averaged $1.77 or 9.7% for the twelve months that ended in March 2021 (and $1.39 and 8.4% if March 2021 were excluded). The spread was $7.22 and a 26.3% spread as of March 29, 2021. And as of March 30, when I am writing this, the spread has increased to an absurd $9.65, or 34.2%!
I’m betting that this pendulum swings back even if pendulums (price gaps) do occasionally swing out.
Simple: Short VWAGY and purchase VWAPY. An arbitrageur might make returns above 20% if the shares revert to a more conventional spread, whether it was the spread from the previous year or the year before. I’m not forecasting when the spread will return to normal, but I’m betting (investing?) that it will.
In This Article...
Why does Volkswagen have two stocks?
The global impact of the Volkswagen pollution crisis is growing. American investors and consumers are suing Volkswagen in large numbers right now.
Some of you might be familiar with Volkswagen as an automaker but not as a stock. After learning about the emission scandal, I imagine that many investors are eager to examine the stock prices and purchase it for the first time.
Volkswagen stock is traded on markets around the world. But Frankfurt, Germany, is its principal market. There are multiple ticker symbols for Volkswagen when searching for Volkswagen equities on the Frankfurt market. So what makes those various symbols different from one another?
Volkswagen’s ticker symbols are “VOW.DE,” where the right part denotes the stock exchange (although we’ll ignore that for now) and the left part denotes the differences between each symbol.
Ordinary shares are the ones with the “VOW” symbol. Ordinary shares entitle you to voting rights if you own them. The shares with the “VOW3” symbol, on the other hand, are preferred shares, which generally do not give you any voting rights but do mean that the owners of these shares have preference in dividend payment, asset allocation in the case of liquidation, and other things. Incidentally, if we compare the prices of Volkswagen’s ordinary shares (VOW) and preferred shares (VOW3) at this time, the ordinary shares are more expensive.
Other symbols for Volkswagen include VOW4 and VOW5. VOW4 stands for a depository receipt, which is a security that a financial institution issues after purchasing stock in a company to use as collateral. Conversely, VOW5 stands for a depository receipt of VOW3, which is also a depository receipt of VOW3, and both of these depository receipts are traded on the market.
It’s preferable to learn more about Volkswagen shares because it’s likely that there will be numerous pieces on Volkswagen in the media over the next few weeks.
Is Volkswagen a listed company?
Volkswagen AG, also known as the Volkswagen Group internationally and with its headquarters in Wolfsburg, Lower Saxony, Germany, is a multinational automobile manufacturer. The business creates, produces, and sells motorcycles, passenger and commercial vehicles, engines, and turbomachinery in addition to providing related services including financing, leasing, and fleet management. It maintained its position as the largest automaker in the world by sales in 2016, holding onto this position in 2017, 2018, and 2019 while selling 10.9 million vehicles.[7] It has held the top market share in Europe for more than 20 years.[8] It was ranked seventh on the 2020 Fortune Global 500 list of the largest companies in the world .[9]
In addition to selling passenger cars under the Audi, Bentley, Cupra, Lamborghini, Porsche, SEAT, koda, and Volkswagen names, the Volkswagen Group also sells motorcycles under the Ducati brand, light commercial vehicles under the Volkswagen Commercial Vehicles name, and heavy commercial vehicles under the names of listed subsidiary Traton (IC Bus, International, MAN, Scania and Volkswagen Caminhes e nibus). As of 2008, it had roughly 342 subsidiary firms and was split into two main divisions: the Automotive Division and the Financial Services Division. [10] Volkswagen also has two significant joint ventures in China: FAW-Volkswagen and SAIC Volkswagen. The business operates in about 150 nations and has 100 production sites spread across 27 nations.
In 1937, Volkswagen was established in Berlin and incorporated in Wolfsburg with the goal of producing the car that would come to be known as the Beetle. In the 1950s and 1960s, the company’s production increased significantly. It purchased Auto Union in 1965, which went on to build the first Audi vehicles after World War II. In the 1970s, Volkswagen introduced a new line of front-wheel-drive cars, including the Passat, Polo, and Golf, which went on to become its best-selling model. SEAT became Volkswagen’s first non-German brand when the corporation acquired a controlling interest in it in 1986. Volkswagen also gained ownership of koda in 1994, Bentley, Lamborghini, and Bugatti in 1998, Scania in 2008, and Ducati, MAN, and Porsche in 2012. Over the past ten years, the company’s operations in China have expanded significantly, making China its largest market.
Volkswagen Aktiengesellschaft is a publicly traded business with secondary listings on the Luxembourg Stock Exchange and SIX Swiss Exchange in addition to its principal listing on the Frankfurt Stock Exchange, where it is a component of the Euro Stoxx 50 stock market index. Since 1988, it has been traded via American depositary receipts in the US; it is currently traded on the OTC Market. 2013 saw the delisting of Volkswagen from the London Stock Exchange[11][12]. The Lower Saxony government owns 12.7% of the company’s shares, giving it legally 20% of the voting rights .[13]
Is Volkswagen stock a good buy?
According to an analysis of Volkswagen’s historical stock price, the trend was downward and, as of 23 December, there were no indications that it will reverse.
An optimistic forecast for 2022 was supported by the consensus analyst sentiment and algorithm-based predictions from Wallet Investor.
Before purchasing Volkswagen shares, investors should conduct their own due diligence. None of these viewpoints need to be interpreted as a suggestion to buy stock in the business.
Why has Volkswagen stock gone down?
Since April of this year, the price of VOW3 stock has been declining as the company’s capacity to produce cars has been hampered by supply chain bottlenecks.
How high can Volkswagen stock go?
By the end of 2025, Volkswagen stock might cost 227.256 per share, according to forecasts made using an algorithm by Wallet Investor. These forecasts are derived from an evaluation of the current price trend. Up until then, a lot of factors could happen, which could have an impact on the performance of Volkswagen stock.
In five years, where will the Volkswagen stock be?
Volkswagen AG stock?
Should I trade the stock “VLKAF” today?
based on our real-time forecasting system,
Volkswagen AG may be a successful investment choice if you’re looking for companies with strong returns.
183.450 USD is the Volkswagen AG price as of 2022-09-04, and based on our projections, a long-term growth is anticipated.
the predicted “VLKAF” stock price for August 27, 2027 is 355.013 USD. With a five-year investment, the income is
Your present $100 investment may be up to $193.52 in 2027, with a projected return of +93.52%.
How do I purchase VW stock in the USA?
- Select a web broker. One of the most crucial elements to successful trading is this one.
- Establish a trading account. Open your account once you’ve chosen your broker.
- Put the trading platform in place.
- Performing your analysis
- Buy Volkswagen shares.
Does VWAGY offer dividends?
A $0.55 dividend per share is given by VWAGY. The yearly dividend yield for VWAGY is 2.76%.
The last ex-dividend date for Volkswagen AG was May 13, 2022. Shareholders of Volkswagen AG who held VWAGY shares before to this date were paid $0.55 per share as the company’s final dividend on June 1, 2022. The next ex-dividend date for Apple has not yet been disclosed.
Those Volkswagen AG shareholders who had VWAGY shares before to May 13, 2022 received a dividend payment of $0.55 per share on June 1, 2022, the company’s following quarterly payment date. If you want to be alerted when VWAGY pays its next dividend, add the stock to your watchlist.
Yes, VWAGY’s earnings per share for the most recent fiscal year were $3.82, and their dividend payout per share is $0.93. The sustainable dividend payout ratio for VWAGY is 15.12% ($0.93/$3.82).
Vwapy: Is it a wise investment?
The consensus price objective for Volkswagen AG among the 16 analysts who are providing 12-month price projections is 23.21, with a high estimate of 32.09 and a low estimate of 11.52. From the most recent price of 14.26, the median projection reflects a rise of +62.79%.
Analyst Recommendations
Since August, when it remained unaltered from a Buy rating, the current consensus among 2 polled investment analysts is to Buy stock in Volkswagen AG.Move your cursor over previous months for detail.
Volkswagen trades on the NYSE?
Which stock exchanges do shares of Volkswagen trade on? The following stock exchanges offer Volkswagen stock for trading: Berlin, Dsseldorf, Frankfurt, Hamburg, Hannover, Munich, and Stuttgart.
Which is preferable, ordinary stock or an ADR?
You should first calculate the commission your broker is likely to charge you for each trade in order to decide whether it would be better for you to purchase the foreign stock (F ticker) or the ADR (Y ticker). If the commissions for the foreign stock and the ADR are the same, then buy the foreign stock. I typically merely enter the order into my broker’s online platform to see the anticipated commission and then hit “Cancel” rather than confirming the trade.
If the foreign stock purchase commission is higher, you should think about how much you want to buy and how long you want to hold the stock.
Larger investors and long-term holders should often purchase the foreign stock, whereas smaller investors and those who do not anticipate holding the stock for a long time will typically find the ADR to be more cost-effective.
The stock of Volkswagen is declining; why?
Recent Earnings (Q4 2021) During their most recent earnings call, Volkswagen informed investors that the global semiconductor scarcity and the Covid pandemic had caused a 6.2% fall in vehicle sales for the Automotive company.
Does Volkswagen pay a dividend?
Volkswagen distributes a dividend once every year. May is the payout month. The dividend calendar displays the month that each firm distributes dividends for more than 1,000 dividend stocks.
Who has the majority of Volkswagen’s stock?
Shareholder Organization
- Porsche Automobil Holding SE, 31.4%.
- 27% of institutional investors are foreign.
- Qatar Holding LLC, 10.5%.
- State of Lower Saxony, 11.8%.
- 16% are other private shareholders.
- German institutional investors made up 3.3%.