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- 1. How to buy Aston Martin shares (AML)
- 2. Compare the best Aston Martin trading platforms
- 3. How to buy Aston Martin stock, a step-by-step guide
- 4. What is Aston Martin?
- 5. History of Aston Martin
- 6. Should I invest in Aston Martin?
- 7. How Much Should I Invest?
- 8. Buying, selling and trading shares for beginners
- 9. FAQs
How to buy Aston Martin shares (AML)
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The luxury car industry was one of the most badly hit by the coronavirus pandemic in 2020, and despite a £536 million bailout in January that year, Aston Martin Lagonda Global Holdings initially struggled. However, the stock of this prestigious UK car manufacturer weathered the storm and came out stronger.
Compare the best Aston Martin trading platforms
Copy link to sectionAll stockbrokers with direct or indirect access to the London Stock Exchange (via a partner stockbroker) should offer Aston Martin shares for trading. Based on commissions, user features of their trading platforms, and other services, we have shortlisted the best stockbrokers that offer Aston Martin shares.
77% of retail CFD accounts lose money.
Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
How to buy Aston Martin stock, a step-by-step guide
Copy link to sectionThe process of investing in a company is simple nowadays, so don’t worry, even if you’re new to stock investing. These are the steps to follow in order to complete your investment:
- Find a broker. You need to open a share dealing account with an online stockbroker to be able to buy Aston Martin shares. Look for a broker that has access to the London Stock Exchange (LSE) where the stock is traded, but you should also consider other factors, such as the trading fees and any minimum deposit requirement.
- Analyse the Aston Martin Stock Price Chart. Since you have already decided to buy AML shares, no fundamental analysis is necessary. Instead, you should analyse the Aston Martin share price chart to determine the right time to buy the stock. There are many technical indicators you can use to analyze the trend and any support/resistance levels. You may also need to analyse the daily trading volumes.
- Start Trading. If your technical analysis indicates a good time for entry, you can place your buy order. You can use a market order (which buys the stock at the market price) or a limit order (which buys at your specified price when the stock falls to that level). Always have a trading plan before making a trade.
What is Aston Martin?
Copy link to sectionAston Martin Lagonda designs and manufactures automobiles. This British auto company offers sports, racing, roadster, and commuter cars. As of 2021, the company has 10 production bases scattered all over the UK.
Aston Martin became associated with class and glamour during the 1950s and 1960s, and this motor brand featured in the 1964 James Bond movie Goldfinger. Aston Martin sports cars are regarded as a British cultural icon, and the company has held the Royal Warrant as a purveyor of motorcars to the Prince of Wales since 1982.
Aston Martin was listed on the London Stock Exchange on 3 October 2018 and is a constituent of the FTSE 250 Index. The company had a market capitalization of $2.2bn as of February 2021, and — despite its status as a symbol of luxury, wealth, and class — Aston Martin itself has gone bankrupt seven times in its history.
History of Aston Martin
Copy link to sectionAston Martin was founded in 1913 when Lionel Martin and Robert Bamford formed Bamford & Martin to sell cars made by Singer. Martin was a car racer at that time and wanted to make racing vehicles. The first racing car, named Aston Martin, was created by Martin by fitting a four-cylinder Coventry-Simplex engine to a 1908 Isotta Fraschini. In 1922, Bamford & Martin began producing cars to compete in the French Grand Prix. The car went on to set world speed and endurance records at Brooklands.
However, the pair went bankrupt in 1924 but were rescued by Lady Charnwood, who put her son, John Benson, on the board. This did not save the automaker from running into more financial difficulty a year later, which forced Martin to sell the company (Bamford had already left). Later that year, Bill Renwick, Augustus Bertelli, and investors including Lady Charnwood took control of the business. They renamed it Aston Martin Motors. The company suffered yet another financial setback in 1932 and was rescued by Lance Prideaux Brune.
In 1947, Aston Martin was acquired by gear and machine tools manufacturer, David Brown Limited, for its 2.6-liter Bentley-designed engine. By 1972, David Brown had paid off all the company’s debts to the tune of £5 million before handing it over to Company Developments, a Birmingham-based investment bank consortium.
In 1982, Aston Martin was granted a Royal Warrant of Appointment by the Prince of Wales. However, the company faced financial difficulties again, which resulted in Ford taking a shareholding in September 1987. Ford placed Aston Martin in its Premier Automotive Group, invested in manufacturing infrastructure, and ramped up production. In 1994, Ford opened a new factory to manufacture the DB7 series (DB are the initials of David Brown).
Aston Martin produced a record 700 cars in 1995, and by 1998, it had made over 2,000 of the DB7 model. By 2002, the 6,000th DB7 was produced. This exceeded the production of all of the previous DB series models. The DB7 range was revamped by the addition of more powerful V12 Vantage models in 1999 and 2001,
In 2006, following an internal audit, Ford decided to divest its position in the company and partly sold out to a consortium led by Prodrive chairman David Richards for £475 million (US$848 million) the following year. Ford, however, retained a stake in Aston Martin valued at £40 million (US$70 million)
In 2013, Aston Martin sold a 5% stake to Daimler AG in a deal that would see the German company supplying the next generation of Aston Martin cars with Mercedes-AMG engines and electrical systems. This technical partnership was intended to support Aston Martin’s launch of a new generation of models that would incorporate new technology and engines. Mercedes later increased its holding from 5% to 20%.
After reversing its trend of perennial losses, Aston Martin went public in 2018, and the following year, the company opened its new 36-hectare (90-acre) factory in St Athan to produce its first ever SUV, the DBX.
On 31 January 2020, Canadian billionaire and investor Lawrence Stroll led a consortium of investors who paid £182 million in return for a 25% stake in the company.
Should I invest in Aston Martin?
Copy link to sectionAston Martin sells luxury cars and SUVs. Given that the 2021 economy is still recovering from the coronavirus pandemic, with unemployment rates still high, luxury goods like Aston Martin will likely be last on consumers’ lists. Thus, prospective Aston Martin investors might wait until Q3 and Q4 2021 and see what happens.
Aston Martin Stock Investment Potential
Aston Martin may not be a stock for short-term plays, but it presents long-term investment opportunities, given its diversification strategy and the expansion of its ecosystem to appeal to more luxury customers. Not to mention its plans to make 90% of its cars electric by 2030.
The brand is also increasingly being used (mostly through licensing) for other products, including submarine, real estate development, and aircraft. This implies that it is actively trying to increase its revenue streams through other means.
What Kinds of Investors Should Include Aston Martin Stock in their Portfolios?
Aston Martin stock should appeal to investors with a long term outlook. The company’s diversification drive and the plans to transition to electric cars by 2030 shows that the stock has potential for future growth.
How Much Should I Invest?
Copy link to sectionHow much you are willing to invest in Aston Martin stock depends on how much you’re willing to lose. Though no trader plans to lose his capital, stock trading comes with the risk of losing your capital. To avoid losing your shirt, invest only what you can afford to lose. This amount, however, depends on your economic status, investing experience, and risk appetite.
Buying, selling and trading shares for beginners
Copy link to sectionHow to Buy Shares in Aston Martin Stock?
Copy link to sectionShares of most publicly traded companies can be bought via a stockbroker or directly from the company through what is known as a direct stock purchase plan (DSPP). Unfortunately, shares of Aston Martin cannot be purchased through a direct stock purchase plan as the company does not have such a plan in place at the time of writing. So, you can only buy the shares through a stockbroker.
Buy Aston Martin Shares Using a Broker
Copy link to sectionOpen an account with a stockbroker and fund it. Then, log into your trading account, search for Aston Martin using the appropriate ticker (AML.L), click on the stock and place your buy order. If you prefer buying at the market price, you can click buy and enter the number of units you want to purchase. If you prefer using a price limit, you can set your limit target and enter your preferred price range. Once your trade has been registered, your order is sent to the exchange floor where it is executed. You will then see the appropriate amount of units you purchase displayed on your screen dashboard.
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