It’s an old political cliché that a week is a long time in politics. On the stock markets, however, just a few hours can turn a company’s prospects upside down – as Aston Martin has recently proven.
Ironically, as recently as 23 January, it was reported that analysts at Citigroup rated Aston as a ‘high-risk, high-return’ bet based on the potential of the DBX, targeting a future share price of £6.
Since Aston Martin Lagonda plc was floated on the stock market in October 2018, its launch share price of £19 has been in decline, dropping to £11.56 on 14 December 2018.
It had taken less than two months for the shares to lose around 40% of their value, although many analysts felt the initial launch price of the shares was over-enthusiastic.
By 18 January last year, things had picked up a little before continuing their downward journey. This was perhaps a little surprising, because Aston was reporting a generally successful 2018.
According to its accounts, the number of ‘wholesale’ cars sold for 2018 was 6441, up from 5098 in 2017. The company sold 1785 V12-engined cars and 4471 V8s. Sales in the US jumped 38% and Aston’s revenue hit £1.1 billion, up 25%.
Excluding the ‘specials’ built by the company, the average selling price for its cars was £141,000. That’s high, but perhaps not high enough considering Aston’s incoming investment plans.
One surprise hiding in the accounts was that the cost of placing the company on the stock market was £136 million, helping to push annual profits down to just £68m.
On future product launches, the investor presentation was especially bullish. As well as the DBX crossover, the line-up included two new mid-engined supercars – the Aston Martin Vanquish and Valhalla – as well as an electric SUV and electric saloon from Lagonda in 2021 and 2022.
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Share revaluation
Can someone please explain to me why all charts show that the share price was around £2-3 in December while in fact it was above £6?? Cheers
Share revaluation
Can someone please explain to me why all charts show that the share price was around £2-3 in December while in fact it was above £6?? Cheers
Design
It's a shame that no matter what car company comes up within the design of a new car . The CEO is the one the buck stops with and should step down or resign as they give it the final nod for it to go into production. When you see all the cars no matter it is from Audi Fiat Toyota Ford etc designers should do the walk of shame for pushing such designs in the first place come guys get your act together.