Shares of Aviva plc (LON: AV) have been stuck in a tight range over the past seven months marked by a high of 305p and a low of 227p. The stock has not recovered fully from the March selloff and is down 29.45% this year.
However, there is light at the end of the tunnel given that the company’s stock price has been lingering near the top of its trading range since June but has not been able to break out of the pattern pulling back each time it hits the top.
Despite the sideways price action, the stock has been inching higher with smaller pullback stacking the deck in favour of the bulls.
The insurer’s fundamentals are quite solid since the appointment of Amanda Blanc as CEO in July who has since sold the insurer’s Singapore unit in a move that will free up a lot of capital that could be used to fund other projects.
Aviva was falling behind its peers in terms of innovation but was still a solid dividend-paying company until the coronavirus pandemic hit.
Under the new CEO, Aviva has taken tangible steps to reinvent its business including signing the RaceAtWork pledge spearheaded by the Prince’s Responsible Business Network under the Business in the Community (BITC) initiative.
It remains to be seen whether the recent changes initiated by Ms Blanc will push the stock to break out of its 7-month range given how close it is to the top.
Aviva share price
Aviva shares were down 1.14% today to trade at 295.4p but were still trading near the top of its recent range.