Over the period, the company recorded total revenues of £18.45bn, resulting in a 35% year-on-year jump – revenues surged on an escalation in prices.
On 19 May, National Grid published its financial results covering the 2021/2022 fiscal year ended 31 March. National Grid fundamental analysis: Latest earnings Moving forward, NG’s 50-day and 200-day simple moving averages are also relevant areas of support to watch in case the rally decides to take a breather.Īny plausible NG share price forecast should take into account potential scenarios concerning Russia’s invasion, including a sharper deterioration in the relationship between European countries and Russia, which could accentuate the current energy crisis.Īn escalation in political tensions may favour the company at this point, although it can also lead to social discontent that may ultimately put a cap on National Grid’s ability to keep raising its prices if regulators step in. The chart above indicates that NG shares are embarked on an ascending price channel that started in October last year as UK inflation and energy prices started to climb.īoth the upper and lower bound of that formation remain the most important resistance and support areas to watch moving forward, while momentum readings appear to be favouring a positive National Grid share outlook.Īs of 26 May, the Relative Strength Index ( RSI) has been standing at 51.3 (neutral), while the Moving Average Convergence Divergence ( MACD) has remained in a positive territory and above the signal line, even though it has been declining of late. This results in a forward dividend yield of 4.2% – an attractive percentage for income-seeking investors and possibly one of the reasons why the stock price has surged in the past few months. On 19 May, the Board of National Grid approved an increase in the company’s final dividend to 33.76p for a total of 50.97p paid out for the entire year, compared to 49.16p the company paid the previous year. As a result, NG shares are outperforming the broad-market FTSE 100 index (UK100), which is up 0.51% YTD. So far in 2022 (as of 26 May), the National Grid share value has surged by 12% as higher electricity prices have boosted the company’s earnings.
#NATIONAL GRID STOCK DRIVERS#
National Grid stock analysis: Price drivers and technical view
What can be expected from this utility stock considering the current scenario in the energy sector? In this article, we assess the latest National Grid share news, its price action and fundamentals to outline plausible scenarios for the future. Inflation in the United Kingdom rose 7.8% during the 12 months ended in April this year, with housing and household services, including electricity, gas and other fuels, contributing 2.76% of the overall figure.Īn energy shortage in Europe caused by blockades and sanctions imposed on Russia in light of its invasion of Ukraine is a major reason behind the sharp increase in electricity prices.Īccording to data from Statista, electricity prices in the United Kingdom have reached record highs this year, with day-ahead baseload contracts averaging £263.79 in March 2022, compared to £57.83 a year ago. The price of National Grid shares ( NG) has risen for 8 consecutive months as higher energy prices have benefitted the company’s bottom line. National Grid share price forecast: Targets for 2022-2025.National Grid stock projection: Analyst sentiment.
National Grid fundamental analysis: Latest earnings.National Grid stock analysis: Price drivers and technical view.US30 US Wall Street 30 (USA 30, Dow Jones)
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