Aviva (AV.)

Sector:

Insurance

Index:

FTSE 100

381.40p
   
  • Change Today:
    -27.50p
  • 52 Week High: 602.90
  • 52 Week Low: 376.80
  • Currency: UK Pounds
  • Shares Issued: 2,802.90m
  • Volume: 12,322,118
  • Market Cap: £10,690m
  • RiskGrade: 140

Sunday share tips: Aviva, Ibstock

By Alexander Bueso

Date: Monday 18 Oct 2021

LONDON (ShareCast) - (Sharecast News) - The Financial Mail on Sunday's Midas column told readers to buy shares of Aviva, pointing out the recent share purchases by its chairman and the company's ongoing reorganisation which it said would pay dividends in the future.
As recently as 12 August, George Culmer, the chairman, purchased £420,000 more stock of the asset manager's shares as they neared their level from before the pandemic.

"A chairman's purchase of shares is almost always a positive sign, particularly when that chairman is as experienced as Culmer, a man who has spent decades in the financial services industry," Midas said.

Furthermore, Aviva's new chief executive officer, Amanda Blanc, had been refocusing the business on Canada, Ireland and the UK.

Those moves, said Midas, should allow Blanc to "invest more effectively in the business and generate decent returns."

Since arriving at Aviva in June 2020, she had also sold eight overseas units with the proceeds expected to reach £7.5bn by year end.

More important even, the firm's last interims showed the best general half-year insurance results in over a decade.

Thus, brokers are now anticipating a full-year dividend payout of 22.05p per share for 2021, rising to 25.36p in 2022.

There was also a "strong" chance that Blanc would return more than £4.0bn already promised to shareholders.

Indeed, activist investor Cevian was calling for a £5.0bn cashback.



The Sunday Times's Jim Armitage told readers to buy shares of Ibstock, pointing out to them the less-demanding valuation relative peers.

Shares of Volution had run up by about 90% year-to-date and was now trading on a price-to-earnings multiple in the 20s, while the sector had gained 13%.

Ibstock's shares on the other hand had only risen by 13%.

The reason? Investors had assumed that higher raw material costs linked to disruptions at Chinese ports and at home due to Brexit would hit the company's profits.

However, the company had been able to pass on those higher costs to clients.

Freight and labour costs were a potential problem and Ibstock had warned that they had become more acute and that profits would slow in the back half of 2021.

Yet some analysts believed the company was being too conservative and Ibstock had also cut overheads at an impressive pace.

"That will bring in juicier profit margins long after we've all stopped talking about Covid, Brexit and the HGV crisis," the tipster said.

"Shares in Forterra, a rival brickmaker and arguably the most similar stock market business, have gained 30 per cent this year. Ibstock should do the same. Buy."



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Aviva Market Data

Currency UK Pounds
Share Price 381.40p
Change Today -27.50p
% Change -6.73 %
52 Week High 602.90
52 Week Low 376.80
Volume 12,322,118
Shares Issued 2,802.90m
Market Cap £10,690m
RiskGrade 140

Aviva Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.89% above the market average96.89% above the market average96.89% above the market average96.89% above the market average96.89% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
16.04% below the market average16.04% below the market average16.04% below the market average16.04% below the market average16.04% below the market average
25% below the sector average25% below the sector average25% below the sector average25% below the sector average25% below the sector average
Income
87.75% above the market average87.75% above the market average87.75% above the market average87.75% above the market average87.75% above the market average
20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average
Growth
91.62% below the market average91.62% below the market average91.62% below the market average91.62% below the market average91.62% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 10
Buy 1
Neutral 7
Sell 0
Strong Sell 1
Total 19
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Aviva Dividends

  Latest Previous
  Interim Final
Ex-Div 18-Aug-22 07-Apr-22
Paid 28-Sep-22 19-May-22
Amount 10.30p 14.70p

Trades for 28-Sep-2022

Time Volume / Share Price
12:39 1,137 @ 381.30p
12:39 504 @ 381.40p
12:39 369 @ 381.40p
12:39 2,000 @ 381.80p
12:39 1,500 @ 381.60p

Aviva Key Personnel

CEO Amanda Blanc
CFO Charlotte Jones

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