As Abrdn share price nears its all-time low, is it a good buy?

on Oct 3, 2022
  • Abrdn share price is nearing its all-time low amid rising concerns about the company.
  • Its assets under management, revenue, and profits have been falling.
  • The stock could crash to a new low of 100p soon.

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Abrdn (LON: ABDN) share price has nosedived in the past few months, turning one of the best-known financial firms into a fallen angel. The stock crashed to a low of 134.98p, which was about 72% below its highest point in 2021. Its market cap has plunged to just 2.87 billion.

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Abrdn under pressure

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Abrdn, formerly known as Standard Life Aberdeen, is a financial services company that operates in three key areas. First, the firm provides investment solutions to clients from around the world. It has over £500 billion in assets under management.

Second, the company provides advisory solutions. Finally, it provides personal wealth business. In 2021, it added into this capability by acquiring Interactive Investor in a £1.5 billion deal. 

Abrdn share price has been in a strong bearish trend in the past few months as investors remain concerned about the company. The most recent results showed that the company’s revenue dropped by 8% to £696 million in the first half of the year. 

Meanwhile, the firm’s adjusted operating profit dropped by 28% to £115 million while its AUM crashed by 6% to £508 million. Notably, its net flows declined by 1% in the first half of the year. The firm then moved from a net profit of £102 million in the first half of the year in 2021 to a £289 million loss.

Abrdn share price has collapsed as concerned about the broader market continues. For one, global stocks had a difficult September as the main indices dropped by about 10%. This is notable since Abrdn invests primarily in the stock market and makes money when its asses rise.

Meanwhile, the company has also attracted new short-sellers. Ken Griffin’s Citadel and Blackrock have unveiled short bets on the company. It is unclear whether a rumoured return of £500 million to shareholders will boost the stock. An analyst at Numis said:

“We continue to think that a more radical strategy is needed to turn the group around and maximise value, such as the breakup of the group or sale of the group in full.”

Abrdn share price forecast

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abrdn share price

The weekly chart shows that the ABDN share price has been plummeting in the past few months. The stock managed to move below the important support level at 164.70p, which was the lowest level since August 2011. 

This chart shows that Abrdn shares have crashed below the 25-day and 50-day moving averages. Therefore, the stock will likely continue falling in the near term as sellers target the key support level at 100p.


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