Rolls-Royce Share Price Soars: What’s Driving the Surge?
Investors have been optimistic about Rolls-Royce Holdings PLC (LON: RR) over the past few weeks, with the share price rising 59.84% since the start of 2021. The stock surged to a high of 152.85p this week, the highest level since March 2020, and currently stands at 150p. This represents a remarkable recovery of more than 343% from its lowest point since 2020, making it one of the best-performing FTSE 100 stocks.
The cause of the surge in the Rolls-Royce share price has been attributed to the recovery of the airline industry. The demand for new aircraft, as well as the servicing and maintenance of existing planes, has helped the company to benefit from the industry’s recovery.
This week, the share price of Rolls-Royce Holdings PLC RR, -2.56% was up 2.40% on Wednesday and 0.75% on Thursday, but dropped 5.02% on Friday. Overall, the outlook for the Rolls-Royce share price looks positive. However, there are a few factors that could cause the stock to decline in the short term. The company has a large debt burden of £3.3 billion, and investors may be tempted to take profits after the recent surge.
Overall, the future outlook for the Rolls-Royce share price is positive, but investors should be aware of the risks associated with investing in the stock. The company’s debt burden is a major concern and there is a risk of profit-taking by investors.
0. “Rolls-Royce share price chart points to a 30% jump to 200p” Invezz, 6 Mar. 2023, https://invezz.com/news/2023/03/06/rolls-royce-share-price-chart-points-to-a-30-jump-to-200p/
1. “Rolls-Royce Holdings rises Wednesday, outperforms market” MarketWatch, 8 Mar. 2023, https://www.marketwatch.com/story/rolls-royce-holdings-rises-wednesday-outperforms-market-18ffbe9-bf5ed7db4ec6
2. “If I'd invested £1k in Rolls-Royce shares at the start of 2023, here's how much I'd have now!” Motley Fool UK, 13 Mar. 2023, https://www.fool.co.uk/2023/03/13/if-id-invested-1k-in-rolls-royce-shares-at-the-start-of-2023-heres-how-much-id-have-now/