Aston Martin Lagonda share price: what’s the outlook after bosses buy back shares
Aston Martin Lagonda continues to execute it ‘Second Century’ strategy that aims to position the carmaker for long-term sustainable growth by expanding its product range and increase its manufacturing footprint.
The British carmaker has made a modest start to the new financial year, with first quarter revenues up 6% year-on-year to £196 million, driven by a slight uptick in vehicle sales growth.
However, the company is banking on the second half of the year being a major driver of profitability, with Aston Martin’s bosses fuelling investor confidence in the company by buying back thousands of pounds worth of shares earlier this week.
Aston Martin bosses share buybacks help stock rally
Aston Martin CEO Andrew Palmer, CFO Mark Wilson and Chairman Penelope Hughes collectively spent £296,000 of their own money to buy back shares at £8.76 each.
The announcement helped the luxury carmaker’s stock rally more than 8.3% to £9.64 a share on Tuesday, with the stock climbing even higher over the last two days, sitting at £10.13 a share as of 11:30 GMT on Thursday.
Full-year guidance remains unchanged ahead of half-year results
There is no change to Aston Martin’s full-year 2019 guidance, with the company expecting its end of year results to be in-line with current market expectations.
‘We remain conscious of the challenging external environment in certain of our markets and we have taken this into account in our planning whilst ensuring we do not compromise on delivery,’ Palmer said.
‘We are putting all the right building blocks in place as we look towards 2020 with the first sales of the DBX, investing in a disciplined manner, and controlling costs, to ensure the continuing, successful execution of the Second Century Plan,’ he added.
Shareholders will have the chance to voice any concerns at the carmaker’s annual general meeting scheduled for June 25.
Aston Martin will offer investors an update on its performance in its half-year results on July 31.
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