This would suggest that Royal Mail's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns). Royal Mail has been on a tear since early November. We do not allow any commercial relationship to affect our editorial independence. Remember: Shares can go down as well as up. A high insider ownership often makes company leadership more mindful of shareholder interests. To put Royal Mail's beta into context you can compare it against those of similar companies. Royal Mail is worth less than at any time since it was privatised in 2013, after its warning of a challenging year of disputes with its trade union sent shares tumbling. 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The current Royal Mail (LSE: RMG) share price of 265p is 20% below its flotation price of 330p in 2013. If you click on them we may earn a small commission. What next for shares after the post-crash bounce? Housebuilders' boom loses more steam: Crest Nicholson... Apple rakes in £65bn in just three months: Shares rise 4%... Now takeover crazed tycoon Mike Ashley plans a bid for... ALEX BRUMMER: Royal Mail boss Rico Back fluffs his delivery... Land Rover unveils the fastest and most powerful Defender V8 yet. In three or four short years from now these shares WILL be worth £10 a share. The value of their shares peaked at nearly £3,900 in May last year. Past performance is not a guide to future performance & investors may not get back the amount invested. BRUNNER INVESTMENT TRUST: A conservative alternative to Scottish Mortgage? 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Richard Hunter, head of markets at Interactive Investor, said letters are in 'terminal decline'. That is certainly a promising jumping off point for our analysis but it is not the whole story. That's why we have constructed our StockReports to give an instant impression of how well exposed Royal Mail (LON:RMG) is to these three factors. The latest earnings announcement Royal Mail plc released in March 2019 indicated that the business experienced a major headwind with earnings declining by -32%. Royal Mail has delivered disappointing news today to the 400,000 or so private investors and employees who own its shares by announcing a cut in the dividend. Sentiment around Royal Mail shares is somewhat bearish at the moment – which is fully evident in its current stock price of 177p. The market (LSE average) beta is 1, while Royal Mail's is 1.5821. Jupiter Green: How we invest in companies helping the planet. 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Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. Why Royal Mail shares are a bargain right now, by investor of £2.8 billion 3 Oct 2016 Alex Wright, who runs the £2.83 billion Fidelity Special Situations fund, has asserted that Royal Mail shares are an opportunity right now because the market ‘misunderstands’ the company’s pension liabilities. Take a position on over 16,000 shares. Stockopedia is here to help individual investors beat the markets by being the very best in stock analysis, research & community. Some links in this article may be affiliate links. It now expects full-year profits of between £500million and £530million having previously hoped for as much as £550million. MIDAS SHARE TIPS: Are you seeking fat profits from your investments? We can see by using Royal Mail’s StockReport that the group has a: When we add all of these together, we find that Royal Mail has a Value Rank of 95. They can look unappetising. Try eEnergy, the firm that's saving schools money, MIDAS SHARE TIPS UPDATE: FTSE 100 firm DS Smith might be recycling packaging but it's producing a payout, MIDAS SHARE TIPS: Home in on carpet and flooring giant Headlam for the chance to make piles of cash, MIDAS SHARE TIPS UPDATE: Our tip is still a good DiscoverIE as shares nearly triple since 2014, MIDAS SHARE TIPS: Plug in to tech firm Cordiant Digital, which is powering the online boom, MIDAS SHARE TIPS UPDATE: Business park firm Sirius Real Estate proves doubters wrong, MIDAS SHARE TIPS: Zoo Digital is the firm that can dub Walt Disney character Mickey Mouse in any language, MIDAS SHARE TIPS UPDATE: Healthy animal feed maker Anpario is flying high. 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DVSA warns drivers risk missing mandatory tests, Cost of cover falls £87 a year for old bangers as drivers keep cars for longer: Two in five on the road are now more than a decade old, Is this the most futuristic car cabin yet? The sell-off has hit thousands of savers and postal workers with money tied up in the company. Royal Mail ’s Value Rank of 95 puts it in the cheapest quartile of the stock market. Royal Mail shares crashed to a record low yesterday in a major blow to postal workers and savers with money tied up in the company. Where next for the Royal Mail share price? So What Does This Data Suggest About Royal Mail Insiders? London Stock Market & Finance report, prediction for the future: You'll find the Royal Mail share forecasts, stock quote and buy / sell signals below.According to present data Royal Mail's RMG shares and potentially its market environment have been in a bullish cycle in the last 12 months (if exists). 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Will Royal Mail shares maintain their bullish trend in 2021? Royal Mail said its letters business has also been hit by new European privacy regulations on junk mail. Originally a public entity, overseen by a government department, the company began its transformation into a private organisation in 2011 following the Postal Services Act, when 70% its shares were sold to private investors after 499 years of public ownership. I’ll also explain how I’d play RMG now. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around. Trailing twelve-month price to free cash flow of 7.44, Trailing twelve-month price to sales ratio of 0.24. 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It's fair to assume that its shares are cheap on a few metrics - and our StockRanks would agree with this assumption: Stacks of academic research covering different time frames and regions of the world all conclude that, over time and on average, cheap stocks outperform expensive stocks. Royal Mail also believes there are opportunities for GLS to expand overseas. Sticking with a value strategy is actually extraordinarily hard. Its current market cap is £2.223 billion. Royal Mail will release its annual results on May 20. Published: 17:56 EDT, 29 January 2019 | Updated: 17:56 EDT, 29 January 2019. But with parcel revenues up 6 per cent in the first nine months of the year, total revenues rose 2 per cent. But under rules set at the time of the float in 2013, they were not allowed to sell without paying tax until two weeks after the October profit warning, by which time their shares were worth £2,090. 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Shares in Royal Mail (LON:RMG) are currently trading at 180.59, but a key question for investors is how much the current economic uncertainty will affect its share price.. One way of making that assessment is to look at the profile of the stock to see where its strengths lie. Here, I’ll look at why its shares have risen this week. A smarter way to invest in value stocks is to find the best quality value stocks or value stocks whose share prices are turning around - history shows that you can do much better than a passive investor by combining factors, so it makes sense to consider Royal Mail’s Value Rank alongside its Momentum and Quality Ranks. For the moment, it looks like Royal Mail has found a bottom at 178p, potentially halting the downtrend of 2018 and 2019. Get low margins when you go long or short on global stocks. 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We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. The markets in which Royal Mail operates are changing rapidly. On another bleak day for the 503-year-old firm, the stock fell more than 13 per cent, to 260.8p, leaving it 59 per cent below last year's peak of 631p, and 21 per cent below the 330p the shares listed at in 2013. Three Minute Money: Should we fret over house price indexes? Stock quickly rocketed, banking those who sold their shares a healthy profit. Royal Mail's (LON:RMG) share price currently languishes at all-time lows of 252p, pricing the entire company at £2.5bn and giving its shares a substantial 9.31% forecast dividend yield. But it's not quite that simple. Royal Mail stock fell more than 13 per cent, to 260.8p, leaving it 59 per cent below last year's peak of 631p, and 21 per cent below the 330p the shares listed at in 2013. Russ Mould, investment director at AJ Bell, said: 'There is a huge amount for Rico Black to do if the business is to have a chance of getting back above 330p per share.'. Royal Mail shares: technical analysis . Why has the US stock market soared while UK shares have fallen behind? POLAR CAPITAL GLOBAL FINANCIALS TRUST: A £221m trust well placed for the recovery, BMO MANAGED PORTFOLIO: Income AND growth in a trust with a twist, CLIMATE ASSETS: Attenborough effect boosts climate fund investing in electric cars, renewable energy and clean water, SECURITIES TRUST OF SCOTLAND: All change at £200m investment fund, but income is still essential, LAW DEBENTURE: The unique investment trust that gets a steady income from legal services. Whatever the cause, we suspect those mailings are gone for good. Remember the value of shares can go down as well as up and in deciding to sell your shares you may get back less than you have invested. However, they were below 300p come a trading statement … The slump has been particularly painful for around 140,000 Royal Mail staff who were handed 613 free shares. Three Minute Money: Should every saver have Premium Bonds? They were changing hands for as much as 631p less than a year ago. ', Michael Hewson, analyst at CMC Markets, said: 'Concerns about growth prospects in the UK and Europe increased on the basis that management don't appear to have a coherent plan to deal with an ever-rising cost base when growth prospects remain cloudy.'. McLaren's planet-preserving supercar: Firm unveils its £185k Artura, Nick Train interview: There's plenty to be optimistic about. The great driving test traffic jam! We do not write articles to promote products. Royal Mail shares crashed to a record low yesterday in a major blow to postal workers and savers with money tied up in the company. Shares in issue 1,000.00 ... Royal Mail Group consists of two principal subsidiaries. Price to Earnings Ratio vs. Sector. This means that their current share price is 9.44%above the 52-week low and 59.76%below the 52-week high. The fact is cheap shares are often cheap for a reason. The postal and courier firm, a favourite among some value investors, is looking cheap. 'It's like having a brick tied around your neck': These three mortgage prisoners have been trapped in high-interest loans since 2008 - will a law change finally offer escape? Three Minute Money: How hard is it to set up a new bank? Foresight manager: How to invest in property and infrastructure for a reliable income. Three Minute Money: What error are accidental savers making? We are no longer accepting comments on this article. In terms of why is Lloyds’ share price so low, the bank’s dependency on the UK economy for its income could be a main reason. The latest slump came as Royal Mail warned it is handling fewer letters than expected – the volume of letters in the first nine months of the year fell 8 per cent while revenues from this arm fell 6 per cent. Royal Mail (LSE: RMG) shares are at all-time lows. Royal Mail was created in 1516 to provide a postal service in Great Britain. The slump in the share price has wiped £3.7billion off the value of Royal Mail in just eight months, leaving it worth £2.6billionn. It is good to see the recent insider purchase. The overarching concern for stockholders is that Royal Mail is operating in a declining industry – with digital alternatives being favoured over traditional letters. Our site should be used for educational & informational purposes only. Back said: 'There will be a clearer focus on financial performance and management accountability. © Stockopedia 2021, Refinitiv, Share Data Services. Yesterday, 613 shares were worth just shy of £1,600. UBS slashed its price target to 354p from 528p and reiterated its ‘neutral’ stance. Britons have saved £162 billion during lockdown: What will you do with your extra savings? The comments below have not been moderated. Mercedes releases footage of new EQS electric vehicle, Porsche's eFuel could dramatically cut CO2 emissions of cars. We go into greater detail on factor investing in this video. Summary. Mercedes releases images of the EQS electric vehicle's interior including the new dashboard-wide 'Hyperscreen'. Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: 'Royal Mail's gone out of its way to say [the collapse in letter volumes] is down to wider uncertainty and the introduction of new privacy laws. Investing in high-value stocks requires finesse and a sturdy constitution but, when cheap stocks come good, the payoff can be large and sudden. The postal and courier firm, a … Citigroup cut its rating on Royal Mail to ‘sell’ from ‘neutral’ with a target price of 300p. Royal Mail floated on the stock market at 330p per share in the first major privatisation since the Thatcher era. Comparison of Royal Mail's EPS & P/E Ratio with other Industrial Transportation companies We've had the vaccine rally and US election, so what happens next for shares? It came just weeks after Royal Mail issued a profit warning, sending shares plunging. Royal Mail’s (LSE: RMG) share price has bounced recently.This week, it’s up more than 25%. That's why by constructed the Value Rank, which is designed to cut through the noise and offer a composite measure of the following simple valuation ratios: GET MORE DATA-DRIVEN INSIGHTS INTO LON:RMG ». On Tuesday Royal Mail said it was on track to trim £100m in 2018-19 in the UK. Blue Whale manager: Facebook and some US tech shares are good value but I wouldn't buy Tesla. In order to manage the anticipated high volumes and provide a route for Royal Mail shareholders who simply wish to sell all their shares during this time, Equiniti is providing a range of services to do so. Investing in high-value stocks requires finesse and a sturdy constitution but, when cheap stocks come good, the payoff can be large and sudden. It trades above its 20 & 50 sma on the daily chart and above its 4-month ascending trend line ion a bullish trend.