Shares/Stock Invest in Renault Shares

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Renault activity

Renault's business is mainly focused on vehicle sales, which account for 89% of sales.

Vehicles account for the bulk of its sales. However, the company also offers other services, such as vehicle financing, leasing, maintenance, etc.

When deciding to buy Renault shares, it is important to know in which countries the company offers services, because news from these countries can have an impact on the price of the company's shares.

Geographically, Europe contributes the most to its revenues, a quarter of which come from France. Latin America accounts for 8%. Africa, the Middle East, India and Asia-Pacific account for 13% of turnover.

Renault has struggled to find a place in the Chinese market. The main reason is its positioning. The Chinese are looking for something authentic or creative.

Renault shareholders

Renault's main shareholders are the French state and Nissan Motors, each with a share of about 15%. The second largest shareholder in the group is the German carmaker Daimler, with a 3.1% stake.

The existence of a competitor holding a stake in the group is not uncommon in this sector. In fact, Renault also owns shares in Nissan and Daimler.

The other representative shareholders are divided between institutional funds, such as: Vanguard Group, Fidelity Management & Research, Lyxor Asset Management, Amundi Asset Management, BNP Paribas Asset Management and Paulson & Co. Their holdings are between 1 and 2% each.
In addition, the shares of Renault employees represent 2.91% of the capital.

How to buy Renault shares on the stock exchange?

To invest in Renault shares through Admirals, just follow these simple steps:

1️⃣ Log in to your trading account on the MetaTrader 5 platform;

2️⃣ Right click on the "Market Watch" tab;

3️⃣ Go to Symbols and enter Renault or #RNO in the search bar;

4️⃣ Select the Renault title and click Show Symbol;

5️⃣ Right click on Renault Action and click on New Order then Buy or Sell;

6️⃣ Just follow these steps to start trading! Trade Renault shares through the Invest.MT5 account to buy spot shares or sell shares by trading CFDs.

Evolution of Renault stock prices

From the IPO, Renault's stock chart was a real roller coaster, the course of action oscillating between the two extremes.

The evolution of Renault's share price over a period of 5, 10 years and even more was not pleasant for its shareholders.

The listing of Renault on the stock exchange on November 17, 1994 was not a success. He had to wait until January 1997 to return to the original share price. That year, its share price rose to 64 euros, before the internet bubble burst.

The carmaker's shares began to rise again, indirectly benefiting from the real estate bubble in developed countries, with a record high of 122.87 euros in July 2007.

Prior to the subprime crisis, Renault's shares rose again. After the crisis broke out, the decline of Renault's shares seemed to be taken from a horror movie. Shares fell by more than 91.7% in market capitalization to EUR 10.16 in March 2009.

The renewal of its flagship brands and the progress made in the field of electric cars have allowed Renault to repeatedly reach the psychological level of 100 euros per share.

At this level the problems for this brand begin. This can be explained both fundamentally and technically.

At the fundamental level, Carlos Ghosn's legal problems, governance problems, problems with his partner Nissan and the Covid-19 crisis have led, step by step, to a fall in the share price to a 12-year low of 12.75 euros in March. 2020.

Investors are bored with the current instability within the company, amplified by the coronavirus crisis that has led to a decline in sales and revenue in the entire automotive sector.

But since the end of the isolation period due to coronavirus and with the help of state subsidies and bonuses, vehicle sales have recovered considerably in the summer of 2020, which has allowed the price of Renault shares to rise from the minimum of March 2020.

Renault share dividend

Since 2000, Renault has been paying its shareholders a growing annual dividend. This trend had four interruptions, in the years 2009-2010 due to the subprime crisis and 2020-2021 due to the coronavirus crisis.

This is not surprising for companies that are sensitive to the business cycle. In the event of a recession, their ability to generate resources is reduced.

Outside of these years, the company has always offered rising dividends.

Renault stock dividend history since 2015 (Source: Morningstar.com):

2015: € 1.9
2016: € 2.4
2017: € 3.15
2018: € 3.55
2019: € 3.55
2020: € 0
2021: 0 €
The average return on Renault shares is 4.71%.

However, it is important to note that this high return is the result of the ratio between the dividends paid (up) and the share price (down). The dividend yield is influenced by the decrease in Renault share prices in 2018 and 2019.
 
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