Analysis of Bayer share price for trading

Latest news

Bayer reports better than expected EPS in the first quarter

28/04/2020 - 11h53

It is very difficult to see companies posting positive results in the first quarter of 2020, with the exception of those in the pharmaceutical sector. Bayer is one of them, and in the first quarter of the year, it is doing very well on all fronts (EPS, EBITDA, etc.).

Our advice for trading Bayer share

Tip number 1

We would of course monitor new medicines and treatments introduced onto the market that appear particularly promising or with high potential by this group.

Tip number 2

The partnerships, mergers and acquisitions operations of the Bayer Group should also be closely monitored.

Tip number 3

The Bayer group’s activities and future also depend on the growth of the cereal crops industry which should therefore be monitored carefully.

Tip number 4

Of course, the world economy and particularly the problems encountered by the pharmaceutical industry are also influential factors on the Bayer share price.

Tip number 5

Clearly the same is true for controls and regulations, notably those that relate to the prices of pharmaceutical products that could have negative consequences on the group’s profitability.

Tip number 6

Finally, we would monitor the development of similar but low cost products by competitors and on their share of the market parts.

Tip number 7

Since the acquisition of Monsanto by Bayer, we would also follow news relating to the use of glyphosate which is currently a frequent topic and could negatively influence the group’s sales.

Trade in Bayer shares!
80.5% of retail investor accounts lose money when trading CFDs with this provider.
The chemical and pharmaceutical sector is undoubtedly one of the sectors that is least susceptible to crises at the present. Such is the case with the German group Bayer, quoted on the stock market which means you are able to buy and sell its shares online. To better assist you in understanding this company and trade in its shares we provide you here with some information on the company together with fundamental data that will be invaluable with your investments.  

 

General presentation of the Bayer Company:

Bayer is currently one of the chemical industry’s pillars in the creation, production and sale of pharmaceutical products. Its activities are spread across several sectors such as health products as well as high performance materials, agrochemical products and other less significant activities.

This company’s turnover is generated in countries including Germany, the United States, China and elsewhere.

 

Knowing the competition to Bayer shares:

The global pharmaceutical sector is extremely competitive and therefore Bayer has to face great pressure from several large pharmaceutical companies that constantly seek to increase their share in the market. We therefore provide you here with information about Bayer’s top competitors to assist you in your share price analysis of this group.

 

Strategic alliances implemented by the Bayer Group:

A number of strategic alliances and partnerships have also influenced the Bayer share price. Here are the major partners of this group.

 

Introduction and quotation of the Bayer shares:

Bayer shares are quoted on the German stock market, the Deutsche Bourse AG, and integrated in the calculation of the Eurostoxx 50 stock market index.

Historically, the share price of the Bayer Company has experienced strong fluctuations over the years, particularly following the creation of new chemical and technological products.

 

Important data

 

Economic history

To be able to understand what can influence the rise or fall in the Bayer share price it is necessary to complete an economical and financial analysis of the company over the last few years. This is therefore what we offer you right now by summarising the major influential events over the last few decades.

Using the analysis of events that we have provided above you will find it easier to understand the future economic and financial events that will probably influence this company’s share price.

 

The advantages and strong points of Bayer shares as a stock market asset:

Firstly, we should of course underline the presence of Bayer on an international level which represents a major strength of this group.  With more than 300 companies based in 78 different countries, the distribution system implemented by Bayer is solid as well as highly integrated. To achieve this Bayer has been able to count upon its experience of over 150 years in the sectors of health and agriculture.

Another considerable advantage for the Bayer Company concerns the division of its different activities into different sectors. The group has in fact structured its activities into three major groups with a pharmaceutical division, a consumer health and plant science sector and lastly the animal health sector which creates products and solutions for the treatment of domestic animals. 

The Bayer Group is also renowned for its innovative capabilities which are a real advantage in this highly competitive activity sector. In fact, we owe a lot to the R & D division of Bayer for truly revolutionary products created in the past such as aspirin, Rennies, and Poncho. And the company continues to be innovative.

The excellent performance of the Bayer Company is also due to a particularly intelligent work organisation. The Bayer workforce of around 115,000 people worldwide is basically in continuous training and benefit from a healthy work environment which significantly increases the profitability of the group and also its innovative capabilities. 

Finally, Bayer’s financial performance is satisfactory with a good solid treasury flow. The financial health of the company is therefore considered to be solid and reliable. The dividends paid are also attractive for shareholders of this asset.

All the above appears to indicate that Bayer shares should be considered in terms of a Buy position. However, as we shall now see, this strategy remains somewhat risky.

 

The disadvantages and weak points of Bayer shares as a stock market asset:

To summarise, the weak points of this asset appear as significant and impactful as its advantages and it is therefore primordial that you take them into account when taking position on the price of this share on the stock markets. We suggest you favour medium term strategies over long term strategies that could be riskier due to the significant risks in the case of a new scandal or controversy.

Trade in Bayer shares on an online trading platform:

To invest now in the stock markets you can start by trading in shares such as those of Bayer from any online trading platform directly accessible from your home.

Trade in Bayer shares!
80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.