By Danilo Masoni and Aaron Saldanha
(Reuters)-US retail investors are buying American Depositary Receipts from German car maker Volkswagen AG (OTC :), some market participants said. Electric vehicle market.
Volkswagen (DE :)’s US-listed stock rose nearly 17% on Monday and Tuesday. In contrast, preferred stocks, which make up the major types of stocks, increased by almost 9% over the same period in Frankfurt.
Institutional investors tend to trade the company’s more liquid preferred stocks, so a significant rise in US ADRs with less Volkswagen trading indicates purchases from US retail investors, Milan said. Angelomeda, Head of Equity for Banor SIM, said.
“US retail investors are targeting Europe,” Meda said.
According to Acon data, trading volume of ADR, the only type of stock accessible to US retail investors, was about 12 times the 90-day average on Tuesday, while trading volume of preferred stocks was about 2.5 times.
Private investors are a handful of stocks this year, most notably GameStop Corp (NYSE :) surged more than 1,600% in late January, cutting most of its profits the following month.
There have been few recent mentions of Volkswagen on Reddit’s Wall Street Bets. Its inhabitants were enthusiastic supporters of GameStop, AMC Entertainment (NYSE :) Holdings Inc, and other so-called meme stocks.
However, car makers have taken a great deal of interest in the trading-focused social media site Stocktwits. On this site, the volume of messages related to listings in the United States exceeds 70%, and over 97% of messages reflect positive sentiment.
The German company said it is aiming for more than double the delivery of electric vehicles this year, the day after announcing plans to build a half-dozen battery cell plant in Europe. He reiterated his belief that cost savings will help improve profitability over the next few years.
German Volkswagen common stock, unlike preferred class stocks, is associated with ADR and rose 15.5% in two sessions.
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Private Investors Accelerate Volkswagen’s US Equity Soaring
https://www.investing.com/news/stock-market-news/retail-investors-accelerate-volkswagens-us-share-spike-2448627 Private Investors Accelerate Volkswagen’s US Equity Soaring