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Volkswagen AG, or the Volkswagen Group, is one of the largest automotive manufacturers in the world. It’s also one of the most recognized brands globally and ranked first in automobile sales globally from 2016 to 2019. Founded on May 28, 1937, in Berlin, Germany, Volkswagen has since expanded to over 100 production facilities in 27 countries. In total, it has operations in over 150 countries. As of 2008, the Volkswagen group also has 342 subsidiary companies.
Volkswagen scaled its production between the 1950s and 1970s and released several innovative car models. Some of these models still exist today, such as the Passat and Golf. During this time and into the 1980s and 1990s, Volkswagen also strategically acquired other automotive companies to grow its market share. These include Škoda, Bentley, Porsche, and Lamborghini. Post-2010, its operations have expanded significantly in China, which is now its largest market.
However, Volkswagen’s rise to become one of the biggest names in automotive manufacturing hasn’t been without controversy. In September 2015, the US Environmental Protection Agency alleged that Volkswagen had installed specialized software in some diesel vehicles to deceive emissions tests. In that same month, the Volkswagen Group admitted guilt. This resulted in more than $30 billion in fines and settlements the company must pay.
Despite this scandal, Volkswagen’s revenue rose year after year between 2016 and 2019. Fast forward to 2022, the company sells passenger vehicles and commercial cars, motorcycles, engines, and turbomachinery. It also offers services related to financing, leasing, and fleet management.
Volkswagen Stock History
The Volkswagen stock symbol is VWAGY, and it has been publicly traded on the Frankfurt Stock Exchange since August 1961. As of April 2022, the Volkswagen Group had a market cap of $102.16 billion. In 2020, Volkswagen was the 7th largest company in the world according to the Fortune Global 500 list.
As of April 2022, the VW stock has split twice since it started trading in 1961. On March 17, 1969, the first split occurred when shares were split at a 1:2 ratio. At this time, shares had a nominal value of DM 100.00 and were split into two shares of DM 50.00 each. The second split happened on July 6, 1998, and the split ratio was 1:10. Each DM 50.00 share was converted into ten no-nominal-value shares. This means that the market determines the value of the shares, and they do not have a set price.
Following the emissions scandal, the Volkswagen stock price decreased to $23.32 per share in September 2015. However, the share price rose in the following years, reaching a post-controversy high of $46.53 on January 22, 2018. As of April 22, 2022, the VW stock price was $23.02 per share.
When it comes to dividends, the Volkswagen Group has consistently paid them. Shareholders received dividends between 2017 and 2021 for both ordinary and preference shares. In 2021, Volkswagen stock dividends were $9.13 per share for common shareholders, and preference shareholders received $9.06 per share.
How to Trade Volkswagen Stock
There are several factors to consider when you trade Volkswagen stock. One major factor is oil prices. The price of oil can positively or negatively impact automotive sales in general, and Volkswagen is no exception. As a result, another factor to be aware of is Volkswagen’s innovation and developments related to renewable energies. As oil prices rise, consumers are looking for more sustainable options. Volkswagen takes sustainability very seriously, and it has clearly defined environmental goals it hopes to achieve by 2030.
In Volkswagen’s key markets, government regulations and legislation can also affect its share price. In 2020, the German government offered €9,000 subsidies for each electric vehicle sold, which increased demand for them. This contributed to the successful launch of Volkswagen’s ID.3 and ID.4 electric vehicles, with over 70,000 combined units sold in 2020.
The Volkswagen Group’s partnerships and contracts are also a key factor when trading the stock. In 2021, Volkswagen announced it would invest €15 billion into the Chinese electric vehicle market, and it now manufactures ID.4 vehicles from its site in Tianjin.
Volkswagen’s main competitors are Toyota, the Hyundai Motor Group, General Motors, Ford, and Renault Nissan Mitsubishi. All of these are publicly-traded companies. Toyota generated the most revenue in 2021, reaching $275.28 billion.
Volkswagen Periodic Earnings
The Volkswagen Group reports its earnings quarterly and releases an annual report each year. The company’s fiscal year runs from January to December. In the 3rd quarter of 2021, reported earnings were +$0.64 per share. This figure beat analyst expectations by +22.37%.
Why Trade VW stock with AvaTrade
There are many reasons why you should consider trading stocks via CFDs with Avatrade.
- International regulation: Avatrade is subject to and complies with relevant international regulations and directives.
- Leveraged trading – a favourite tool for many CFD traders, leveraged trading can help you to maximize your returns even when there are only small price changes. With Avatrade, you can trade VWAGY stock with a leverage of up to and enjoy higher profits. Note that there are risks involved with leveraged trading, as with any trading.
- Ability to short sell VWAGY stock – as with all other CFDs, at AvaTrade, you can go long or short sell VWAGY stocks based on what’s happening in the markets.
- Automated trading solutions: Avatrade offers automated trading solutions that make investing simpler and quicker.
- Competitive spreads – maximize your profit margins by trading VWAGY stocks alongside other stocks’ CFDs with minimal cost.
- AvaProtect risk management solution – a powerful tool that protects your trading positions against losses. Available on specific financial instruments.
- Social trading via AvaSocial – an innovative social trading application that allows you to interact with other registered traders at Avatrade in unique ways. (Currently not available in the European Union).
- Advanced analysis from the Trading Central – enjoy advanced detailed stock analyses from our Trading Central.
** Disclaimer –While due research has been undertaken to compile the above content, it remains an informational and educational piece only. None of the content provided constitutes any form of investment advice.
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