Bennie Kincaid 
- Aston Martin’s share has maintained a massive bearish trend.
- It has plunged by over 95% from its record high.
- The company revealed plans to sell 599M new shares.
Aston Martin’s stock price rebounded cautiously as market players evaluated the firm’s future. The stock climbed towards the 468p high, nearly 16% beyond this week’s low. It remains approximately 96% beneath its record high mark.
Aston Martin Lagonda Rights Issue
Aston Martin is among the top luxury car firms globally. It manufactures & sells iconic brands like those used in James Bond films. The Monday regulatory statement saw the company confirm plans to sell 559M shares at 103 per share. That represents a substantial discount as the shares traded at 468p.
The rights issuance is among the firm’s plans to raise 653M pounds. The deal will see Saudi Arabia’s PIT (Public Investment Trust) becoming a stakeholder in the company. Aston Martin will use most of the cash to pay debts, which have increased beyond 1.3B pounds.
The company has had to raise money as its business situation deteriorated. Aston Martin said its revenue gained 9% to 541.7M pounds in the year’s first half. Its adjusted EBITDA soared to 58.6 billion, a 20% uptick. Consequently, its operating loss increased by over 130% to above 89.9 million. Aston Martin has endured struggles due to the worsening supply chain problems.
Consequently, analysts trust that the company’s revenue increase will remain substantially slow in 2022. The firm stated that it was encountering a challenging operating atmosphere, citing the Ukrainian war, extended logistics and supply chain disruptions, and China’s COVID lockdowns.
Also, the company stares at challenges transitioning to electric cars. It’s yet to select its lucrative electric technology. Its choices include systems from Brtitishvolt, Lucid, and Mercedes-Benz.
Aston Martin Share Prediction
The daily chart indicated that AML’s price maintained a steady bearish bias within the last few months. It has dipped beneath all MAs, whereas the AO (Awesome Oscillator) dropped under the neutral level.
Also, AML stock moved beneath the descending trendline. It created an inverted head & shoulders setup. Thus, AML might witness a brief pullback, with bulls targeting the resistance zone at 500p.
Editorial credit: Rowan Patrick Photos / shutterstock.com
