Rolls-Royce share price has bounced back after crumbling to a multi-month low earlier this month. It jumped to $750 on Friday, up 35% from the lowest level this month, and is now hovering a few points below the all-time high at $ 817p. This article explores whether it is safe to buy the RR stock price ahead of May 1, when it will have its annual general meeting and trading statement.
Rolls-Royce annual general meeting and trading statement
Rolls-Rolls Holdings will be one of the top FTSE 100 shares to watch this week as the company conducts its AGM and issues its trading statement.
These events will come at a time when shareholders are cheering the company’s turnaround and performance under Tufan Erginbilgic, who became the CEO in January 2023.
The Rolls-Royce share price has jumped by over 800% during his term, making it the best-performing FTSE 100 stock.
This stock has jumped because of the recovery of the civil aviation industry, which has led to more orders for its engines. Other aircraft engine manufacturers like General Electric Aviation, Safran, and Pratt & Whitney, which RTX owns, have done well.
Rolls-Royce Holdings has also benefited from the growth of artificial intelligence (AI) as its power division provides useful solutions in the industry. It is providing backup and other power needs to companies powering data center solutions around the world.
Further, the company benefited from the rising geopolitical tensions following Russia’s invasion of Ukraine in 2022. That war has led to a surge in demand for military equipment, some of which Rolls-Royce Holdings provides. This demand could keep rising now that many European countries are boosting their budgets.
Tufan Erginbilgic has also led to more changes to its operations. It exited the ambitious plan to build electric-powered aircraft engines, and has sold some of the top non-core businesses in its operations.
He also announced job cuts and an ambitious mid-term target that the company reached ahead of schedule. Therefore, this AGM will likely be a good one as the stock now sits near its all-time high.
Read more: Rolls-Royce share price is recovering: is it a safe investment today?
Rolls Royce Earnings ahead
In addition to the AGM, Rolls-Royce Holdings will also deliver its first-quarter trading statement that will provide more color about its business.
While its performance is expected to be good, the management will likely talk about the impact of Donald Trump’s tariffs on its business. These tariffs will likely lead to increased costs, especially in the US, where Trump has implemented a 25% tariff on all imported steel and aluminum.
The ongoing trade war may also lead to supply chain issues that may affect its revenue and profitability growth.
The most recent results showed that Rolls-Royce Holdings continued thriving in 2024. Its underlying annual revenue jumped to £17.8 billion, while the statutory figure soared to £18.9 billion.
Rolls-Royce also boosted its profitability, which increased to £2.29 billion, up from £1.26 billion the previous year. The free cash flow rose from £1.28 billion to £2.45 billion.
Rolls-Royce share price analysis
The daily chart reveals that the RR stock price has done well in the past few months. After initially dropping to a low of 557p earlier this month, the stock bounced back to the current 755p. It has now surpassed the 50-day and 25-day Exponential Moving Averages (EMAs).
The Relative Strength Index (RSI) and the MACD indicators have all pointed upwards, a sign that it is gaining momentum. It has also moved slightly above the ultimate resistance of the Murrey Math Lines tool.
Therefore, the stock will likely continue rising now that trade tensions have cooled. If this happens, the next level to watch will be at the all-time high at 811p, which coincides with the extreme overshoot level.
Read more: Will the surging Rolls-Royce share price 1,000p in 2025?
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