Aviva share price struggles ahead of full-year results amid coronavirus concerns
The insurer saw its stock tumble more than 15% last week amid rising concerns about the COVID-19 outbreak, with investors also worried about how the company will cope with the softer economic growth outlook in Europe and the UK.
Aviva will unveil its full-year results on Thursday, but it has been a challenging 12 months, with it struggling to deliver growth, leading to its share price to fall 16% since the start of the new year.
The company, along with other UK stocks, has faced a tough macro backdrop, with rising concerns about the COVID-19 outbreak also helping to drive its share price lower.
The insurer has also been impacted by a change of management, with Maurice Tulloch taking over as CEO back in March of last year. When he took charge, Tulloch promised to ‘re-energise’ the company by focusing on its core fundamentals, improving customer service and streamlining the group.
Looking to trade Aviva and other UK stocks? Open a live or demo account with IG today.
Aviva looks to reduce the amount of debt on its balance sheet, with the company boasting strong financial foundations, but loan repayments will gobble up its cash and with top line growth stagnant its share price has struggled make significant gains.
However, the stock remains popular with investors due to its progressive dividend policy, delivering an interim pay-out of 9.50p a share, up 3% from last year.
The stock, though clawing back some of its losses on Tuesday, with it trading 2% higher, will struggle to make significant gains over the near-term with investors concerned about the softer economic outlook in Europe and the UK.
Therefore, Aviva is unlikely to wow investors when it delivers its full-year results on Thursday, but it won't disappoint either.
Aviva is trading at 353p a share as of 13:55 (GMT) on Wednesday.
You can go long or short Aviva with IG using derivatives like CFDs.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on stock opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.