Introduction
Rolls Royce Holdings plc is a leading British engineering company with a long and distinguished history. It is the world’s second largest aircraft engine manufacturer and has been a major part of the aviation industry for more than a century. In recent years the company has expanded into other sectors including marine and energy, but its core business is still in aviation. Investors have long been interested in Rolls Royce’s stock as a way to gain exposure to the aviation market and the LSE is one of the primary markets where Rolls Royce shares are traded. In this article we will take a look at the current performance of Rolls Royce shares on the LSE and what investors should expect going forward.
Rolls Royce Share Price History & Current Performance
Rolls Royce shares have been traded on the London Stock Exchange since 1987, when the company was first listed. Since then the stock has had many ups and downs, with periods of strong performance followed by periods of underperformance. Over the past five years, the stock has been on an upward trend, with the share price rising from around 350p in 2016 to over 1,100p in early 2021. This significant increase has been driven by a combination of factors, including an increase in demand for aircraft engines, cost cutting measures, and the success of new product launches.
More recently, the share price has been volatile, with the stock fluctuating between highs of over 1,200p and lows of around 900p. This is largely due to the uncertainty surrounding the aviation industry as a result of the pandemic. Despite this, the stock has held up relatively well compared to other aviation stocks and is currently trading at around 1,100p.
What to Expect Going Forward
There is no doubt that the pandemic has had a huge impact on the aviation industry, but there is also some cause for optimism. Airlines are beginning to ramp up operations again and there is talk of a potential recovery in the second half of 2021. If this happens, demand for aircraft engines should increase and Rolls Royce’s share price could benefit.
In the short term, the stock could remain volatile as investors attempt to make sense of the current situation. It is also worth noting that the company has recently announced a restructuring plan that could see it exit certain markets and focus on its core strengths. This could have a positive effect on the share price in the long term.
Conclusion
Rolls Royce shares have been on an upward trend in recent years, despite the turbulence caused by the pandemic. The stock is currently trading at around 1,100p, but there is potential for it to go higher if the aviation industry recovers. In the short term, the stock could remain volatile as investors attempt to make sense of the current situation. In the long term, however, the restructuring plan could have a positive effect on the share price.
