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Rolls-Royce: how are institutional investors positioned right now?


Latest results out for Rolls-Royce [LON:RR.] are cause for some optimism, with some cautiously optimistic numbers out last week. Analysts were concerned about the potential impact the pandemic is still having on the company, especially in areas like 'engine flying hours' as there are predictions that the civil aviation sector is going to take some time to recover.

We thought it was worth running the stock through the powerful machine learning systems at Deshe Analytics and Irithmics, to see how Rolls Royce shares stack up against peers like BAE Systems [LON:BA.] and QinetiQ Group [LON:QQ.]. We also analyse the posture of both long-term investors like pension funds and short-term investors like hedge funds, in this engineering stock.

Shares in Rolls-Royce have the potential to mount a significant come back for the patient investor who can hang onto them for the medium term. We are seeing a positive set up emerging on the technical side, with Rolls-Royce stock now priced above its 5-day and 50-day, but below its 200-day moving averages, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is strengthening.

Historically, this is a positive technical setup in both the short and medium-term. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Rolls-Royce's stock indicates that it's likely oversold.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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