Rolls Royce looks like an avoid at the current levels. The stock finished trading on the London stock exchange at 846p a share on 24th may. Currently, the stock has been trading below its 50 day moving average (DMA), 100 DMA and slightly above 20 DMA of 860p, 858p and 841p respectively. In terms of charting or technical analysis too, the stock has been forming a downward trend line on the daily charts which further confirms the bearish trend of the stock. However, we expect the downside to continue and traders should avoid initiating any fresh long positions in the stock. The immediate support and resistance for the stock lies at 830p and 870p respectively.
Let’s throw some light on the latest financial results of the company. The company’s chief executive Mr. Warren East commented on the results, “Rolls-Royce made good progress in 2017. Financial results were ahead of our expectations and we achieved a number of important operational and technological milestones, but were impacted by the increasing cost and challenge of managing significant in-service engine issues. The business unit simplification and restructuring programme that we announced this January will drive further rationalisation and is a fundamental step in the journey started two years ago to bring Rolls-Royce closer to its full potential both operationally and financially. We are encouraged by the improving financial performance in 2017 with growing revenues contributing to improved profitability and cash generation. Looking forward, sustaining this improvement and delivering increasing cash flow generation will strengthen our position as one of the world’s leading industrial technology companies” (Read more)
Rolls Royce is a Hold at the current level as we see an upside of up to 8% from the current level. The stock finished trading on the London stock exchange at 899p a share on Monday, down by 0.83% compared to the previous close. In terms of technical analysis or charting, the stock has been forming double bottom pattern which indicates that the uptrend shall resume anytime. We expect the stock to bottom out at 880p and fresh buying can be initiated around that level. Currently, the stock has been trading below 20 day moving average (DMA), 50 DMA and above 100 DMA of 925p, 920p and 886p. Clearly, the 100 day moving average would likely to act as very strong support zone for the stock. The immediate resistance would likely be at 970p. Therefore, we would advise traders or investors to buy Rolls Royce once it has bottomed out at around 880p with a target of 960p. The momentum oscillators also indicate the same thing that the stock might correct for a few days, but shall bottom out and be in oversold zone very soon. Hence, traders or investors shall keep an eye at the respective levels and initiate the fresh longs accordingly.
The company announced its half yearly results on 3rd August 2017. Let’s throw some light on the latest financial results of the company. As per the CEO, Warren East, the results showed encouraging year on year progress and the business remains fundamentally strong and well positioned in long term growth markets. The company’s first half 2017 revenue was up by 12% yoy compared to the last year. The company reported profit before tax of £1,941m compared to the loss of £2150m last year. The marine segment continues to face challenging offshore oil and gas markets. However, the company reported good profit growth in civil aerospace and power systems with defense remaining steady. (Read more)
Rolls Royce shall be a ‘hold’ at the current levels as the recent rally and consolidation of the stock confirms the fact that the stock has overcome the negative impact of the change in accounting standards. We stated in our last article that the fresh positions can be built in Rolls Royce, in case the stock breaches the 687p and it did pierce 687p and continued to rally. However, lately the stock has been going through a consolidation and correction mode. Therefore, once the stock is done with its correction and consolidation, fresh longs can be initiated again.
The stock finished trading on the London stock exchange at 759p a share on 6th March, down by 0.07% compared to the previous close. Currently, the stock has been trading above its 20 day moving average (DMA), 50 DMA and 100 DMA of 740p, 701p and 703p respectively. The immediate support and resistance for the stock is at 740p and 788p respectively. In case the stock goes below 740p, then it may test the levels of 720p as well and in case of breakout above 787p, the next target for the stock could be 800p. Therefore, the traders need to keep a close eye on the respective levels and accordingly hedge or initiate fresh positions. In terms of technical analysis, the stock has been trading on an upward trend line which confirms bullishness of the stock in the short term. (Read more)
Roll-Royce holdings has run into trouble following the admission of disappointing results and reports that its previous profits were partly the result of using non-standard accounting standards. The engineering giant left almost 6% on the ground on Friday, and analysts' weekly estimates show a collapse in the stock compared to the FTSE 100 index in the same period. Furthermore, analysts expect the negative trend to continue and for Rolls-Royce Holdings to close to a new low of £676,1 compared to the high of £757,5. (Read more)
Rolls Royce is a ‘Buy” at the current price level as the stock has been rallying non-stop for past 2 months. Any dip in the prices of Rolls Royce is an opportunity to buy for a long term investor or short term trader. On 28th July 2016, the company announced its half yearly results and the stock had surged by over 12% intraday, indicating that the results surely cheered the sentiments of investors. The company’s chief executive, Warren East, commented on the first half results of Rolls Royce, “In the first half of 2016Rolls-Royce performed broadly in line with expectations, delivering a result a little better than breakeven; and the outlook for the rest of the year remains unchanged. Order intake has been good and, although known headwinds constrained revenue and profit in the first half, the business remains well positioned to deliver a solid second half performance supported by growth in engine deliveries, stronger aftermarket revenues and incremental benefits from our ongoing restructuring programmes.”
The stock finished trading on London stock exchange at 786p on Monday, 22nd August. The stock has been trading above its 20 DMA, 50 DMA and 100 DMA of 780p, 729p and 687p respectively. The immediate resistance for the stock is at 831p and support lies at 760p respectively. The stock has been trading in the channel of 751p-831p for last many trading sessions. In case, stock breaches the level of 831p that would ensure new highs for the stock. For the time being, it seems the stock might correct a bit and after correcting it would start consolidating and would again bounce back. Any correction in Rolla Royce is nothing but an opportunity to buy. (Read more)
Rolls Royce Plc
The technical chart of Rolls Royce suggests that the stock is all set for breakout and lately huge volumes have also been witnessed in the stock. A few trading sessions back, Rolls Royce was seen making lows at 600 pence, after a steep correction of up to 10%. However, the stock has bottomed out at 600 pence and thereafter start rising again. We expect the stock would continue to rise in the coming trading sessions and would be seen trading range bound between 630p-660p in the short term. The stock finished trading on London stock exchange at 635 p a share on 22nd June. The immediate support for the stock lies at 630p and resistance at 660p. If the stock manages to breach 660p, it may be seen heading towards 720p as well. However if the stock again goes below 630p, then it may breakdown up to 599p again. Therefore traders shall watch these levels and hedge their positions with stop loss. In the last trading session, the stock has form ‘doji’candlestick pattern which indicates slight indecisiveness amongst traders. (Read more)
We reiterate ‘Buy’ on Rolls Royce and revise the target price from 851 p to 875p. In our last insight on Rolls Royce in December 2015, we had given the target price of 851 pence. The stock surged by 40% to the high of 725 pence, post December 2015. Currently the stock is trading above its 20 days, 50 days and 100 days moving average of 656p, 590p and 602 p respectively. The stock finished trading on London Stock exchange on 8th March 2016 at 706p. Based on earnings estimates for the company's fiscal year ending in December 2017, the stock has a price-to-earnings ratio of 9.7 which is slightly low compared to FTSE100 12 month forward P/E of 13.37. After a spectacular rally of 20%, the stock might head for a small correction. However, the stock is clearly a ‘Buy on dips’ and any small correction makes its valuations even more attractive. In the terms of technical analysis, the stock might come down to 653 pence, which is also a potential support for the stock in the short term. The traders would need to get cautious, if the stock breaks the level of 653 pence. The stock is facing resistance at 725 p, any breakdown above 725 p ensures new highs for the stock. Therefore, the stock shall be range bound between 650 pence to 750 pence in the coming months.
2015 Fiscal results highlight: (Read more)
Rolls Royce is a compelling buy with an upside of up to 40% from the current price levels. The stock has gone through huge correction starting from April 2015 and finally it started consolidating now when last week it had given the breakout at 555 pence. The stock finished trading on London stock exchange at 598 pence on Thursday. Currently the stock is trading at 43% below its 52 Weeks high and 19% above its 52 weeks low. Rolls Royce has a beta of 0.84 which also explains that the stock prices have been less volatile compared to the index.
Rolls-Royce plc is a United Kingdom-based company that designs, develops, manufactures and services power systems for use in the air, on land and at sea. The company has a market cap of £11 B and has two business divisions namely: Aerospace and Land & Sea. The Aerospace Division produces aero engines for large civil aircraft and corporate jets and provides defense aero engines and services. The Land & Sea Division comprises power systems, marine and nuclear businesses. The company generates 68% of the revenue from the aerospace division and the remaining 32% of the revenue is attributable to the land and sea division. (Read more)