Standard Life is trading at £3.68 and the stock is down 5.3% since the company announced a 13% decline in full-year profits to £751 million in February, despite it beating the estimate of £712 million. Funds under management were up 12% to £244.2 billion, and the dividend was increased by 8%.
Fund manager Aberdeen Asset Management came under pressure last week when its funds under management declined by 0.6%; one institutional client withdrew £4.2 billion in contracts. Its competitors, Jupiter Fund Management and Schroders, both recently reported an increase in funds under management.
Analysts are broadly bullish on Standard Life. Out of the 23 ratings, nine are buys, 10 are holds and four are sells.
The company is headquartered in Edinburgh but that could change if Scotland votes ‘yes’ to independence in September. IG is offering a binary bet on the outcome of the referendum, and our clients suggest there is a 20% chance of Scotland voting in favour of independence.
Standard Life’s share price is currently just below the 200-day moving average of £3.72, and the next support level down is £3.60. Positive results could push the price to £3.84, putting £4.06 in the crosshairs.