How to buy Siemens Shares in 2023
Table of Contents
History of Siemens
Siemens is a German electrical engineering company offering services in the fields of energy, transportation and health care. The company was founded in 1847 by Ernst Werner von Siemens. The original name of the company, with more than 170 years of history, was 'Telegraphen-Bauanstalt von Siemens & Halske' after the birth of the telegraph.
In 1848, the company was able to build the longest telegraph line in Europe from Berlin to Frankfurt, stretching over 670 kilometres. Thanks to this new communication technology, news from Frankfurt was able to reach Berlin within a single hour.
Another major milestone in the company's history is that Werner von Siemens discovered the dynamo process and was the first to patent it in 1866.
In 1879, the company, then known as Siemens & Halske, introduced the first electric railway controlled by an external power source.
Merger with EAG
In 1873, Sigmund Schuckert founded an engineering workshop in Nuremberg under the name Schuckert & Co (EAG).
By 1900, EAG had built 120 power plants in Europe but, like other companies in the sector, it went into crisis at the beginning of the 20th century. It was then that it merged with the heavy-duty engineering companies of Siemens & Halske, whereby Siemens' operations were split into two parts:
- Siemens & Halske for the low-voltage market.
- Siemens-Schuckertwerke for the high-voltage market.
Of course, there are countless other inventions and developments related to Siemens, such as the first electric street lighting network, telephones, memory chips, database services, and many more.
In 1966 it received the name we know it by today, Siemens AG.
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Siemens Quote Analysis
As the German economy began to grow significantly in the 1880s, Siemens & Halske became increasingly competitive. The company became a public limited company in 1897 to ensure its competitiveness and sustainability.
On 8 March 1899 they issued their first shares on the Xetra stock exchange in Frankfurt. At the last update of this article, in February 2023, the Siemens share was worth 145 euros.
Below, we can see the development of the Siemens share price over the last 13 years. The price peaked at the end of 2021, at 157 euros, but then entered a bearish channel that led it to lose 100 euros per share.
After forming a double bottom in the summer of 2022, the price rebounded and, at the time of updating this article, was at 145 euros. We can see how the price is making a "V" in the direction of its all-time high. Will it manage to reach it again?
Please note that Siemens shares are currently listed on several indices:
- S&P Global 100
- Dow Jones EuroStoxx 50
- Dow Jones Sustainability Index
- Global Titans
The graph below shows how Siemens shares performed relative to the DAX index over the past two years:
Let's look at it in comparison to the S&P500 index:
Siemens Share Price | 2023
Let us now look at a shorter time frame chart to analyze the movement more closely:
In a shorter time horizon we can see how throughout 2022 the price falls to form a double bottom at 96 euros per share. From there, in September 2022, it manages to rebound and starts a very pronounced uptrend that still continues today and has taken it to 145 euros, a level where it is encountering greater resistance as can be seen in the chart.
Regarding Siemens' corporate results, the year 2022 was positive for its accounts, hence the revaluation of its share price. In its last full financial year, ending 30 September 2022, the company managed to increase its revenues by 8 % to 72 billion euros. Profit in the industrial business reached a new record high at EUR 10.3 billion, up 17%.
As for the first quarter of its fiscal year 2023 (1 October to 31 December 2022), despite a decrease in profit compared to the first quarter of 2022, the company has improved its full-year forecast:
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Siemens Shares | How Can I Invest?
Siemens shares are bought and traded on the Frankfurt Stock Exchange. Admirals offers two options to invest in Siemens: either by buying the shares directly or through derivative products such as Contracts for Difference (CFDs) which also allow you to take advantage of downward trends.
With CFDs, if you think the price will fall, you can open a short position, while if you think it will rise, you can open a long position. In addition, you can use leverage, a tool that allows you to multiply your profits but which must be used with care because it can also increase your losses in the same proportion.
Buy or Sell Siemens Shares in 6 Steps
To Buy or Sell Siemens shares with Admirals just follow these steps:
In the table below we can see how Siemens AG's dividends have been increasing year on year since 2016, which is a good sign for those who invest with dividends in mind.
The dividend yield, however, has declined compared to the years prior to the Covid-19 pandemic, which hit Siemens' results hard. At the end of 2022 it stood at 2.8%, unchanged from 2021.
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