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RBS Stock Rises on New CEO Appointment

The security is still hovering right below its year-to-date breakeven

Digital Content Manager
Sep 20, 2019 at 10:18 AM
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The shares of Royal Bank of Scotland Group PLC (NYSE:RBS) are higher after the financial firm appointed Alison Rose as its new CEO, marking the first time a major U.K. lender has installed a woman in its lead executive role. Rose, who has been an employee for 27 years, will be replacing Ross McEwan on Nov. 1. RBS is trading at its highest price since late July in response, up 3.8% at $5.42.

Looking more broadly, RBS has been on the rise since hitting a nearly three-year low in mid-August. Today, the equity is looking to close above its 80-day moving average -- a recent ceiling on the charts -- for the first time since April. Despite this pop, however, shares of the bank name are still hovering just below their year-to-date breakeven at $5.59. 

Analysts have been approaching RBS with caution. The security sports just one "strong buy," compared to three "hold" or "sell" ratings. 

The bank stock's quick reversal back up the charts appears to have spooked some bears, however. Short interest dropped 18.7% in the last reporting period, with the 2.24 million shares sold short now representing just 2.5 times the stock's average daily volume.

 

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