On the final day (Friday, September 23, 2022), the price of the Bayerische Motoren Werke shares decreased by -3.76%, from 74.17EUR to 71.38EUR. It has already dropped three times in a row. The stock changed by 4.40% during the most recent trading day, moving from a day low of 71.12 EUR to a day high of 74.25 EUR. The price is down -2.9% during the last 10 days and has dropped in 6 of those. Despite declining prices, volume rose by 851 thousand shares over the previous day. This could be a forewarning, and over the next few days, the risk will likely rise a little. A total of 2 million shares were purchased and sold for about 132.73 million euros.
In the short term, the stock is near the lower end of a broad horizontal trend, which often presents a solid buying opportunity. However, a collapse through the bottom trend line around 70.47 EUR will offer a strong sell signal, and a trend change may be anticipated. Given the current horizontal trend, there is a 90% chance that Bayerische Motoren Werke stock will conclude this three-month period trading between 69.58EUR and 79.46EUR. Stocks rarely manage to go straight from the bottom of a trend up to the top, and a break in a horizontal trend is frequently followed by a significant increase in volume. Therefore, potential runners are stocks that turn up in the middle of a horizontal trend.
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What it signifies to you is that:
Are you an investor? BMW currently seems to be selling at or near its fair value, but given the possibility of future negative returns, now might be the ideal time to de-risk your portfolio. Is your present stock exposure good for your overall portfolio? And is it too expensive to hold a stock with a poor outlook? Check to see if the stock’s fundamentals have altered before deciding on it.
Are you thinking about investing? If you’ve been watching BMW for a while, now might not be the best moment to buy considering that it is currently trading around its fair value. There appears to be little gain from mispricing because the price appears to be trading at fair value. The risk of keeping the stock also rises due to the dim growth prospects. In the event that the price fluctuates below its genuine value, other significant aspects that we haven’t discussed today may help you come to a more definitive conclusion about BMW.
In light of this, it’s essential to be aware of the hazards associated if you want to conduct further research on the organization. Four red flags have been identified by our investigation for Bayerische Motoren Werke—two of them don’t sit well with us! and we urge you to look at these before making an investment.
If Bayerische Motoren Werke is no longer of interest to you, you can use our free platform to view our list of more than 50 additional stocks with a strong growth outlook.
Fundamental analysis: COVID-19 caused a decline in BMW sales.
German multinational corporation Bayerische Motoren Werke AG, usually referred to as BMW, makes cars and motorcycles. Because it outperforms its rivals, the company is drawing investors’ attention during this period of uncertainty on the financial markets.
Investors should keep in mind that BMW is a solid firm with a strong presence in the market while trading BMW stock. The majority of financial analysts anticipate that the price of BMW stock will increase significantly over the next several years, making it a potentially profitable investment decision.
The market capitalization of $49.58B and the total stockholders’ equity of $65.67B show that this stock is not expensive, and perhaps this is a good moment to buy BMW stock. The fact that this company has given its shareholders more than $8 billion in dividends over the last three years, and that this sum may become much higher in the future, is another important piece of information for prospective investors.
According to certain predictions, the car industry will only modestly expand over the next few years, but BMW will still be a big role. If you choose to purchase BMW shares, keep in mind that there are a number of drawbacks associated with this business.
According to a press statement from the European Automobile Manufacturers’ Association, car registrations in Europe fell by 5.7% in July and 18.9% in August. BMW’s second-quarter loss before interest and taxes was $780 million as opposed to the $2.57 billion in EBIT from the prior year (earnings before interest and taxes).
BMW CEO Oliver Zipse, though, expressed optimism that the company’s performance will likely improve in the second half of the fiscal year.
BMW sold 372,754 automobiles in Europe during the second quarter, a decline of 32%, while the first half of the year saw 121,318 units (a decrease of 29.5%) sold in the USA. China’s six-month sales only fell by 6.0% to 329,447 units over the past six months, thanks to second-quarter volume growth over the prior year.
The Covid-19 pandemic is mostly to blame, but after things have settled, the price of BMW stock will be much higher.
BMW remains committed to accelerating the uptake of electric vehicles.
This month, Bayerische Motoren Werke AG released strong first-quarter results; overall revenue rose 16.3% year over year to EUR31.14 billion, and GAAP earnings per share came in at EUR15.33.
It is significant to note that the fair market value of the current 50% interest held in BBA has a one-time impact of EUR7.66 billion on the financial results. Additionally, this enhanced the business’s earnings before taxes, which at the end of March totaled EUR12.23 billion and represented an EBT margin of 39.2%.
Compared to the robust first quarter of 2021, vehicle sales dropped by 7.8% in Europe and 9.2% in China; the good news is that sales in the US increased by 3.7%.
Another encouraging statistic is the fact that BMW sold 35,289 all-electric vehicles, a roughly 150% increase from the previous year.
BMW’s continued emphasis on accelerating the adoption of electric vehicles is contributing to solid sales momentum as demand for the BMW iX and BMW i4 rises steadily.
Additionally, the business recently revealed the BMW i7, an all-electric luxury car that demonstrates its leadership in innovation in the fields of electrification, digitization, and autonomous driving. BMW’s Nicolas Peter, the company’s CFO, stated:
We face increasing uncertainty in our business environment due to reduced economic forecasts, supply chain challenges, rising inflation, and high energy and raw material prices. Despite these difficult circumstances, the BMW Group had a successful start to 2022.
The company’s management claims that the key constraining factor, which is projected to persist through the rest of 2022, is supply chain concerns and rising raw material prices.
Due to this, the Automotive segment’s cost of sales jumped by more than 20% during the first quarter, but despite this and inflation, the company’s management predicted that full-year car sales would be comparable to last year’s.
When viewed from a fundamental perspective, BMW trades at less than four times TTM EBITDA, the firm can reduce cost pressure relative to smaller competitors while dealing with supply chain problems, and with a market capitalization of EUR51 billion, shares of this company are appropriately valued.
The billionaires are here.
It’s worthwhile to take some time to research the rich owners of BMW. BMW is still virtually entirely owned by Stefan Quandt and Suzanne Klatten, unlike other large corporations. Herbert Quandt, the father of the siblings, notably saved BMW from bankruptcy in 1959, left them his ownership interests in the company.
This indicates that just 50% of the company’s shares are in free float, or regularly traded publicly. Sometimes the amount a stock fluctuates depends on the free float. The lower free-float of BMW shares makes them potentially volatile.
The impact Quandt and Klatten have on the business is another consideration. Aside from their two board seats, the two have little formal authority over BMW, but it is well known that any significant choice made by BMW officials requires their unofficial blessing. The two have previously made some odd choices, such as a large wager on carbon fiber in 2013 that didn’t quite pan out, but in general, they are one of the reasons BMW is a little less eager to fully commit to electric vehicles.
Can I purchase BMW stock?
Investors should take the following actions to purchase shares of BMW AG:
How much BMW AG stock should you buy:
Choose the amount you want to put into BMW AG stock. Never risk more money than you’re willing to lose when investing.
Account creation
Go to the “Open Account” page and complete the form’s mandatory fields there to open an account.
Investing in BMW Stock using a Trading Platform:
After creating an account, you can use the MetaTrader or NetTradeX trading platforms to trade CFDs on shares of BMW AG. The Xetra stock market is where shares of BMW AG are traded.
BMW: A reliable dividend stock?
BMW distributes 21.6% of its earnings to its stockholders. Our indicator for the dividend’s dependability is 0.84 out of a possible 1.0. This suggests a historically dependable dividend payer. Additionally, experts anticipate a 287.89% growth in the dividend for the current fiscal year.
Which stock does BMW prefer?
BMW has a preferred share that trades at a roughly 15% discount to the regular share, which helps to increase the income on this investment. The preferred stock is listed on Bloomberg under the symbol BMW3:GR. The dividend yield now stands at 5.5%.
Who holds the most BMW stock?
With more than 25% of the company’s shares in his ownership, Stefan Quandt is BMW’s greatest stakeholder. Second-largest stockholder is Susanne Klatten.
While the ownership of BMW has changed throughout time, Stefan Quandt has consistently held the majority of the shares.
Just around 20% of the shares are still under Susanne Klatten’s ownership, which is a sizeable holding.
Since BMW is a publicly traded company, hundreds of diverse stockholders collectively own more than half of its shares.
Is BMW having money problems?
The sanctions for conspiracy are seriously hampering BMW’s plans to dominate the luxury market.
In the past ten years, BMW hasn’t experienced a loss. Given the overall decline in auto sales, the automaker’s poor 2019 Q1 may not have come as a great surprise, but the decline in BMW’s trend line is far too severe to be explained by a slowing auto industry alone.
According to Bloomberg, BMW’s loss was mostly caused by having to set aside $1.6 billion as a legal provision to face fines from China and Europe as a result of the automaker’s alleged cooperation with rival German companies to postpone the introduction of new emissions equipment. But even if you disregard the substantial sum of money BMW had to set away, first-quarter earnings still decreased by 42%, or EUR1.1 billion ($1.23 billion).
The pricing competition BMW encountered in some regions and the expenditures it made in new technology during the first three months of 2019 are the causes of that decline. Although it’s unclear what those investments were used for, it’s understandable how cash resources may have been limited given the automaker’s commitment to collaborate with Daimler on autonomous technology and the influx of new models it recently released, including the X7, 8 Series, Z4, and upcoming 3 Series.
BMW unveiled a EUR12 billion ($13.4 billion) savings strategy that comprises reducing the number of models and speeding up the manufacture of new cars in order to return to profitability. But not all is hopeless, since the momentum BMW created through its investments may result in a surge of sales for the second half of 2019.
Nicolas Peter, chief financial officer at BMW, predicted that overall, the first half of the year will be “somewhat weaker.” Model changes that affect sales and drive up costs should be the cause of the anticipated loss in Q2 2019, but Peter stated that “We expect the second half-year to profit from the strong product momentum.”
Sales of the new 3 Series and the X7, the latter of which, according to BMW CEO Harald Krueger, is flying off dealer lots and above forecasts, will provide that impetus. If BMW can survive this difficult time, which could be made worse by escalating trade disputes between the US and China, it may be able to surpass Mercedes as the leading luxury automaker.