Abrdn share price is rising: buy the stock if this happens

June 12, 2023 09:03 AM PDT | By Invezz

Abrdn share price is rising: buy the stock if this happens — Image source: Invezz

Is Abrdn a good investment?

Abrdn, formerly known as Standard Life Aberdeen, is an investment company that manages over £500 billion. The company provides its services in three key areas, including investments, advisory, and personal.

Abrdn has been under pressure in the past few years as the amount of assets under management plunge. Some of the most important outflows include funds from Scottish Widows and Lloyds Bank. At its peak, the company had over £700 billion in assets.

Abrdn has not published earnings this year. The most recent annual results showed that the company’s net operating revenue came in at £1.45 billion in 2022. This was a significant decline from the previous year’s £1.51 billion.

The company’s adjusted operating profit dropped to over £263 million from the previous £323 million while its loss narrowed to £615 million. These results included the company’s acquisition of Interactive Investor. The company’s outflows during the quarter jumped to over $37.9 billion.

Therefore, the strong performance of the Abrdn share price is likely because investors expect that the company’s outflows will moderate this year. There is also an expectation that the company will narrow its losses this year as the stock market improves.

Another reason is that the company is not one of the top shorted stocks in the UK. The most shorted stocks in the UK are Ocado Group, Kingfisher, Moonpig, Boohoo, and Hammerson among others. Abrdn was one of the top shorted companies in the UK last year.

Abrdn share price forecast

The daily chart shows that the ABDN stock price has been in a strong bullish trend in the past few months. It has soared by more than 70% from its lowest point in 2022. At the same time, the shares have jumped above the 50-day moving average.

Abrdn stock price is approaching the key resistance point at 220p, the highest side of the ascending channel shown in blue. Therefore, more upside will be confirmed if the shares move above this resistance point. If this happens, the stock will rise to the next resistance point at 228p. The alternative scenario is where the stock turns around and resumes the bearish trend. If this happens, the stock could retest the lower side of the channel at 200p.

The post Abrdn share price is rising: buy the stock if this happens appeared first on Invezz.

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