Unilever Share Price Trading Sideways as Company Growth Stagnates

Summary:
• Unilever's share prices have stagnated, and in the past two weeks, the prices have traded sideways within a very tight price range.

Unilever’s share prices have stagnated, and in the past two weeks, the prices have traded sideways within a very tight price range. As a result, there have not been any significant price movements in today’s trading session, with only a less than 0.5 per cent increase.

The Unilever share price struggle comes amidst negative factors likely to reduce investors’ confidence. In an analysis done by Seeking Alpha, they found out that the company was failing to grow its earnings.

The platform also looked at recent management decisions, which have been disastrous. This includes the recent failed takeover of GlaxoSmithKline (GSK) shows, which showed the management had no viable plan to return the company to sustainable growth. The company’s failure to acquire was due to failing to meet the price tag.

The second factor affecting Unilever’s share price is the recent inflation worldwide. In the UK, inflation is rising by 7 per cent. This is the fastest inflation rate in the country in the last 30 years. The rising cost of products that Unilever sells due to inflation has also resulted in consumers buying less.

This is not good for Unilever’s share prices and may result in the company’s growth stagnating. Unfortunately for Unilever, the stagnation has already started, with the company’s profitability taking a hit. They have been boxed into a corner, where they either raise the prices of their products or continue losing money. The costs of running the company have also gone up, and no cost-cutting measures can address such high inflation.

Unilever Price Prediction

Unilever’s prices have struggled in the past few weeks. The prices have also traded in a very tight range, with the current trend looking like a sideways market. Looking at the chart below, the current prices of GBx 3429 have gained in today’s trading session by only 0.22 per cent. I expect the prices to continue trading sideways with no established trend currently. However, there is a high likelihood that the next trend will be to the downside. Therefore, in the coming days, I expect Unilever’s share price to trade below GBx 3,300 level.

Unilever Daily Chart