YORK, UK - CIRCA AUGUST 2015: Royal Mail van parked in a street of the city centre.
The Royal Mail share price is bouncing back today after the company made its latest management change. The shares are trading at 362p, which is 0.65% higher than the Friday’s close. The FTSE 100 and FTSE 250 are also tilting upwards.
What’s happening: Royal Mail, the giant postal service company, announced the new CEO. Simon Thompson, the former head of Ocado will be the new boss as the company continues to transition from letters to parcels. Thomson is also a non-executive director of the company.
Thomson will replace Rico Back, the former Royal Mail CEO who resigned about eight months ago. He was accused of remaining in Switzerland even as the company continued to experience huge orders due to the pandemic. He comes to the company at a time when it is also facing revolt from its employees on their job security. The company also confirmed Mick Jeavons as the CFO.
Thomson comes from Ocado, one of the best-performing companies in the UK. The company operates an online supermarket in partnership with Marks and Spencer. It also helps other retailers abroad to manage their online deliveries.
The daily chart shows that the Royal Mail share price has been on an upward trend because of strong demand for its parcel business. It has soared by more than 203% from its lowest level in 2020. The FTSE 250 company is at the highest level since November 2018.
It is also slightly above the 50-day and 25-day exponential moving averages while the Relative Strength Index (RSI) has moved above the overbought level. Therefore, it seems like the shares have the momentum, which will see it continue rising in the near term. If this happens, the next key level to watch will be 400p.
