Aston Martin (AML) Shares Rose 10.2% on the Yew Tree Investment

The Aston Martin Lagonda Global Holdings PLC (LON: AML) share price rose 10.2% after announcing that some members of the Yew Tree Consortium had agreed to purchase a further 26 million ordinary shares in the firm.

Investors reacted positively to the news, demonstrating the Yew Tree Consortium’s confidence in the company’s future. It is always a good sign when company insiders and existing investors buy more shares, indicating that they think the company will create more value for shareholders. 

Once the transaction is completed, the Yew Tree Consortium will own 26.23% of Aston Martin’s issued ordinary share capital. The consortium will have increased its shareholding in the company by 3.27%. Investors' upbeat reaction to the news was expected, given the vote of confidence in the company's future. 

The Yew Tree Consortium first invested in Aston Martin three years ago. It has since seen the company grow exponentially to become a leading global ultra-luxury car manufacturer, with many of its special edition cars selling out immediately after launch, long before the planned deliveries. 

Lawrence Stroll, the company’s Chairman, can be credited for the significant turnaround achieved by the company since he took over his position. Stroll’s previous experience building luxury fashion brands came in handy at Aston Martin, which has benefitted from his expertise and active company involvement. 

The move higher in AML shares occurred at a crucial support level, and there is room for more upside if today’s rally translates into a sustained uptrend. 

On behalf of the Yew Tree Consortium, Lawrence Stroll said:  “The Yew Tree Consortium is delighted to increase its ownership in the Company by 3.27%.  This additional investment demonstrates the Yew Tree Consortium's continuing confidence and belief in the future of Aston Martin.  The Company has delivered a major turnaround since the Yew Tree Consortium's initial investment three years ago.  We have rebuilt this iconic company, transforming it into an ultra-luxury brand with a portfolio of highly desirable, performance-driven cars.  This increased investment demonstrates our continuing, long-term commitment to the Company, our conviction for the future and the shareholder value the Company will deliver.”

Aston Martin (AML) share price. 

The Aston Martin (AML) share price rose 10.21% to trade at 286.32, from Thursday’s closing price of 259.80p.