Recent Updates On Three FTSE 350 Stocks - Royal Mail Group PLC, Greencoat UK Wind Plc and Standard Chartered Plc  

  • Oct 30, 2019 GMT
  • Team Kalkine
Recent Updates On Three FTSE 350 Stocks - Royal Mail Group PLC, Greencoat UK Wind Plc and Standard Chartered Plc  

Royal Mail Group PLC

London Stock Exchange-traded Royal Mail Plc (LON: RMG) is an industrial transportation group company having operations globally. At present, the group has operations in approximately 44 countries globally with an approximate employee strength of 162,000. Its areas of operation are divided into business segments like General Logistics System and UK Operations.

Recent Updates

Recently, the industrial transportation group reported its outcome of the ballot for an industrial election, in which the group expressed its disappointment with the Communication Workers Union (CWU), as they announced that their members at Royal Mail Plc in which 97.1% voted in favour of exercising an industrial strike.

However, in the same statement, the group reported that a ballot result for a potential strike does not necessarily mean there will be industrial action, as they are still in mediation with the CWC to set out agenda for growth and committed to attaining a resolution.

Post PM Johnson announced that he wants a December election to fix Brexit deadlock, it is expected that Royal Mail’s mediation time would fall alongside with the UK's general election. According to some media houses, the CWC could threat to time any potential industrial action for maximum bargaining leverage, which could impact its shares at the London Stock Exchange.

Share Price Performance

In the October 29, 2019 market session, its shares traded 4.82% lower at GBX 211.50. In the year-over period, its shares have registered a 52w high price of GBX 370.0 and a 52w low price of GBX 186.80, respectively and at the close, its shares traded 42.8% off those highs. In the year-ago period, its shares have tumbled more than 41% and plunged more than 23% in the year-to-date basis, period. However, the company's dividend yield stood significantly higher at 11.82%, but the steep plunge in the stock price over the past one year could be a reason behind the higher dividend yield.

At the time of writing (as on October 30, 2019), shares of RMG were quoting 0.80% higher at GBX 213.2. However, at the current trading level, its shares were well below its long-term crucial support level of 200-day Simple Moving Average price of GBX 232.61, which is also a crucial resistance level for its shares.

The leading indicator, 14-day and 9-day Relative Strength Index in the stock were trending lower towards the selling territory; however, at the current level 14-day and 9-day RSI were trading in neutral zone. Also, the Moving Average Convergence Divergence is falling, and MACD oscillator started hovering below the 9-day exponential moving average (EMA), with 12-day EMA trading below the 26-day EMA, respectively.

Greencoat UK Wind Plc

Greencoat UK Wind Plc (LON: UKW) is a renewable infrastructure fund with the main objective to invest in operating in the UK wind farms and preserve capital on a real basis. The company reinvest excessive cashflow in extra operating UK wind farms. The company also invests in income-producing wind farms, both offshore and onshore in the UK. The group is a constituent of the broader mid-cap index the FTSE 250 with the outstanding market capitalisation of £2.21bn.

Recent Updates

Recently in the exchange filing made by the group as on October 29, 2019, the board of Greencoat UK Wind reported that Tim  Ingram, who served the group as Non-executive Director and Chairman since 2012, has shown his intention to retire with effect from the FY2020 Annual General Meeting scheduled in April 2020.

In an another exchange filing made by the company as of October 10, 2019, the group announced that it has entered into an agreement to acquire Glen Kyllachy wind farm Innogy Renewables UK Ltd  for a total consideration of £57.5m, which will be paid on completion and the aforementioned transaction is expected to finalised by October 2021, once the wind farm is fully functional.

The Target project is a 48.5MW subsidy-free projected hailed in the Highlands, 11 miles south of Inverness and close to UKW's Stronelairg, Dunmaglass.

Share Price Performance

Shares of the Greencoat UK Wind Plc have delivered approximately 12.12% return to its shareholders on a YoY basis, adding around 16% on a YTD basis and up nearly 6% in the past three months respectively. But, despite a decent price return handed to its respective shareholder, the company is still offering an appealing dividend yield of 4.72%, which is well above its benchmark gauge dividend yield.

At the time of writing (as on October 30, 2019, at 09:43 AM GMT), shares of the UKW traded marginally lower against the previous close at GBX 146.0, and in the year-over period, its shares have registered a 52w high of GBX 148.80 and a 52w low of GBX 123.96, respectively.

Also, at the current trading level, its shares were quoting above its short-term and long-term support level of the 30-day, 50-day and 200-day simple moving average (SMA) prices, however, 14-day and 9-day Relative Strength Index were falling lower, but still hovering in the neutral zone.

Standard Chartered Plc

London Stock Exchange-traded Standard Chartered PLC (LON: STAN) is a British multinational banking company, with headquarters in London, the United Kingdom. In the year 1969, through the merger of two separate banks-the Standard Bank and the Chartered Bank, Standard Chartered Bank was formed, to capture the efficiencies of regional diversity. The group is listed on the London Stock Exchange, with the further listing in two financial centres in Asia – the Bombay and National Stock Exchange in India and Hong Kong Stock Exchange.

Financial Results

Recently as on October 30, 2019, the banking group reported its third-quarter (Q3FY19) results for the period ended as on September 30, 2019, with income moving up by 7.0% to US$ 4.0bn and up 8.0% on a constant currency basis, driven by growth recorded across all the segments and regions. The income of Corporate and Industrial Banking segment rose 13% and Private Banking up 14%, and Europe and Americas grew by 19% and ASEAN and South Asia surged by 13% respectively.

During the quarter under consideration, the group's Return on Tangible Equity improved 160bps to 8.9%; underlying profit expanded 16% on YoY basis to US $ 1.2bn and Statutory profit before tax increased 4% to the US $1.1bn. Also, in the same period, the banking group completed buy-back of 116m shares for a headline consideration of US $ 1bn and reduced total issued share capital by 3.5%. The Common Equity Tier 1 ratio remained within 13-14% target range and increased 6bps since June 30, 2019, as well. Risk-weighted assets (RWA) narrowed by the US $2bn to the US $269bn at the end of the Q3FY19.

Share Price Performance

While writing (as on October 30, 2019, at 10:34 AM GMT), shares of the STAN shares traded 15 points or 2.53% higher at GBX 712.60, and in the year-over period, its shares have touched a 52w high of GBX 742.60 and a 52w low of GBX 525.80, respectively.

In the year-over period, its shares have delivered a price return of approximately 27%, and were up 14.07% on a year-to-date basis, with dividend yield standing at 2.61%.

Also, at the current trading level, shares of the STAN traded above its 30-day, 50-day and 200-day simple moving average (SMA) prices, which is generally considered as positive technical trend in the stock. Also, the 14-day and 9-day Relative Strength Index were trending higher.

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