After the German automaker decided to oust Herbert Diess as CEO in the midst of the company’s transition to electric vehicles, shares of Volkswagen AG fell on Monday.
The automaker announced on Friday that Oliver Blume, who currently serves as CEO of Volkswagen’s sports car manufacturer Porsche AG, will succeed Mr. Diess as of September 1. The retiring CEO had a history of clashes with unions, and the change comes after increased internal conflict over the sluggish development of the company’s new generation of electric vehicles’ key software.
It is unfortunate that the top position is being replaced at this time, according to Stifel analysts, as the automaker is getting ready for Porsche AG’s potential IPO on the stock market. It is also unfavorable that Mr. Blume appears destined to lead both the Volkswagen Group and the sports car brand.
But they add, “We feel this is an opportunity in light of the continuous leadership challenges over the previous two years and a depressed value.”
Volkswagen’s preference shares were down 3.2% at EUR130.06 at 07:25 GMT.
In This Article...
Will Volkswagen’s stock increase?
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. The median estimate reflects a gain of +27.15 percent over the most recent price of 18.25.
Analyst Recommendations
Two investing analysts were surveyed, and their current consensus is to buy Volkswagen AG stock. Since August, when it remained unchanged from a Buy rating, this rating has been stable. Mouse over the previous months for more information.
Are Volkswagen shares a smart investment?
From a financial standpoint, purchasing Volkswagen seems like a good deal. Volkswagen produced EPS of 37.24 in 2021 while trading at a price-to-earnings ratio of 5. The company also reported 296 billion in revenues, an increase of 12.3% year over year, and 45.2 billion in cash from operations. Volkswagen’s EBITDA margin varies between 18.5% and 5.5%, and its net income margin is roughly the same. Notably, Volkswagen made significant R&D investments in 2021, depreciating 16.1 billion and capitalizing an additional 10 billion in CAPEX. Volkswagen had 73.7 billion in cash and cash equivalents at the end of the fiscal year 2021, while it had 229.1 billion in total debt.
The future of Volkswagen seems promising. According to the majority of analysts, Volkswagen will reach the revenue milestone of $300 billion by 2023. However, it’s expected that EPS will remain below 2021 levels, at under 36/share.
Is it wise to buy Volkswagen stock in 2021?
Initiated by speculations that the German automaker will soon usurp Tesla’s (NASDAQ: TSLA) EV crown, Volkswagen’s (OTCMKTS: VWAGY) stock has enjoyed a fantastic 2021 thus far and is up around 60% YTD. Back in July, VW said that it wants to go all-electric in Europe by 2033. Additionally, in response to President Joe Biden’s call for increased use of electric vehicles, the business plans “major modifications to its U.S. EV Program.
By pursuing ambitions to lower battery costs and open six gigafactories in Europe by 2030, VW is also seeking to match Tesla sales as early as next year and may even overtake the electric vehicle manufacturer by 2025.
Lofty plans for sure, and it appears that Tesla has a respectable rival in a “old world” automaker.
The ID.4 electric SUV from VW is now available for purchase in China, Europe, and the United States. On a single charge, it has a driving range of 248342 miles. Expectations have been raised even higher across the entire VW group thanks to plans announced by other VW subsidiaries like SEAT for a number of compact SUVs to hit the market by 2025.
As a result of the pressure surrounding VW, retail investors have flocked to the company, which has a constant share price of $32$33 at the moment.
When you look up VW stock, you’ll see that the firm has more than 20 ticker symbols, which can be perplexing. So, we divided it up.
VW: Does it turn a profit?
Despite selling about 2.4 million fewer cars than in 2019, the Volkswagen Group nonetheless generated a healthy profit and margin. Operating profit before special items increased by almost twofold to EUR 20.0 (10.6) billion compared to the prior year, translating to an operating return on sales before special items of 8.0 (4.8) percent.
In five years, where will the Volkswagen stock be?
Stock of Volkswagen AG?
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.
As of 2022-09-05, the Volkswagen AG quote is equal to 183.450 USD. According to 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%.
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.
Vow or VOW3 should I purchase?
with the shares “Ordinary shares have the symbol VOW. Ordinary shares entitle you to voting rights if you own them. Conversely, the shares with the “Preferred shares have the symbol VOW3.
Is VW stock affordable?
- In this study, I’ll explain why I rate Tesla as a hold and Volkswagen as a buy.
- However, Tesla’s P/E (FWD) Ratio is almost 70.
- My DCF Model determines a fair value for Tesla of $569, indicating a downside of 22.7%.
- With a P/E (FWD) Ratio of 3, the Volkswagen stock is currently incredibly inexpensive.
- My DCF Model determines that Volkswagen is now undervalued, with a fair value of $471 and a potential upside of 145% for the German automaker.
Volkswagen: Does it pay dividends?
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.
What distinguishes VWAGY and Vwapy from one another?
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.
Can I buy Vwapy?
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%.
What is the market share of Volkswagen?
Market share of Volkswagen in the US from 2016 to 2020 Based on car sales from January to December 2020, Volkswagen’s market share in the United States was roughly 2.4 percent. A division of the Volkswagen Group is the Volkswagen brand.
Is Vlkaf a wise investment?
We anticipate Volkswagen AG to continue to perform poorly over the next days or weeks since it has multiple warning signs pointing in the wrong directions and is in a broad and declining trend. As a result, we have a pessimistic opinion of this stock.
How can I purchase VW shares in the US?
- 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.
Vwagy is it buy or sell?
Presently, VWAGY has a Zacks Rank of #2 (Buy) and a Value grade of A. The stock’s P/E ratio is 9.03, while the P/E for its sector is 11.56 on average.