Royal Mail Stock Price: Unstoppable Fall Underway

  • Royal Mail’s share has declined by 70% since its ATH.
  • The company stares at a loss this year.
  • Its employees confirmed they would keep striking in 2022.

Royal Mail Group’s share declined saw intensified momentum this week amid continued concerns about the firm’s future. The stock slumped by over 3.40% today, hitting its lowest mark since September 2022. Moreover, RMG has dropped over 70% from its ATH.

Cost and Strikes Concerns

Royal Mail is a top postal firm with its most operations in the United Kingdom, where the company enjoys a robust market share. Like other firms within that industry, Royal Mail Group saw a massive performance during the COVID pandemic, as lockdowns propelled online deliveries.

Consequently, the firm’s profitability and revenue soared, pushing Royal Mail to reward stakeholders with dividends last year. Also, it grew its business by acquiring Canada’s logistic provider Rosenau Transport.

However, Royal Mail struggled (this year) amid waning demand for letters and parcels. Moreover, the company has seen the cost of business operations escalating. Royal Mail is paying more in wages and fuel.

Moreover, Royal Mail has been in a fight with employees – who downed their gears multiple times in 2022. RMG stock slumped today after the union declared plans to strike +19x in 2022. That might result in increased disruptions. And that might massively cost the company.

Royal Mail Group’s management warned about making a loss in 2022. The workers’ representative said that Royal Mail’s CEO treats postal workers like they’re stupid. He added that the employees have returned Royal Mail to profits and connected the nation.

Thus, the continued downside momentum plus substantial challenges might see Royal Mail’s stock plunging in the short term.

Royal Mail Stock Price Prediction

The weekly chart indicates that the RMG stock price exhibited a massive bearish bias within the previous few months. That saw the shares plunging beneath the 78.6% FIB Retracement level. Also, it dipped beneath all moving averages, whereas the AO (Awesome Oscillator moves beneath the neutral mark.

Thus, the road with fewer hurdles for RMG is downward. That might see the stock plunging towards the support mark at 150p. This trade has a stop-loss at 210p.

Leave a Reply

Your email address will not be published. Required fields are marked *