toulouse , occitanie France - 06 25 2021 : aviva afer assurance logo text and sign brand on agency wall of French insurance office
The Aviva share price has come under fire following last week’s contentious shareholder meeting in the past few days. The AV stock tumbled to a low of 384p on Monday, which was the lowest point since March 8th. This price was about 17% below the highest point in April this year. Focus now shifts to the upcoming earnings report scheduled on May 18th.
Aviva has been in the spotlight after a slew of sexist remarks from some of the company’s shareholders. First, the company’s CEO, Amanda Blanc, was accused of not being the man for the job. Then, another shareholder criticised her for wearing trousers. In a statement on LinkedIn, she lamented that harassment has increased in the past few years.
The next key catalyst for the Aviva share price will be the upcoming trading statement that will happen on Wednesday. Analysts expect the results to show that the company did relatively well as interest rates kept rising in the first quarter. Investors will also watch out for the company’s forward guidance. In its most recent results, the firm said it would return 4.7 billion pounds to shareholders even as its profits reduced.
Another important data to watch will be its deleveraging process. The firm has committed to de-lever by another 1 billion pounds this year.
So, has the Aviva share price gotten so cheap? Aviva is seen as one of the most attractive UK insurance stocks to buy. This is because the firm has strong shareholder returns in terms of dividends and buybacks. At the same time, the company has transformed itself by selling its underperforming companies. Now, it is focusing on its key markets like the UK, Ireland, and Canada.
The four-hour chart shows that the AV share price has been in a strong bearish trend lately. The decline accelerated when the stock moved below the key support level at 420p. This was a notable level since it was the lowest point on April 11th. Now, the stock’s downward trend is being supported by the 25-day and 50-day moving averages.
At the same time, the RSI has formed a bullish divergence pattern. Therefore, at this stage, the outlook for Aviva is a bit bearish, with the next key support level being at 350p. As a result, the stop-loss for this trade will be at 425p.
This post was last modified on May 17, 2022, 09:19 BST 09:19