The Aviva share price surged on Thursday after the company bowed to pressure to return $5.5 billion to shareholders. The 4.4% surge in Aviva share price sent the stock to the top of the list of gainers on the FTSE 100 index.
The UK insurance firm agreed to return the equivalent of 4 billion pounds to shareholders after Cevian Capital, which owns a 5% stake in the company, asked the firm to return the funds to shareholders, prompting the stock to hit 8-week highs.
The Aviva share price had seen a reversal in fortunes in 2021, following a disastrous 2020 when its business was hit hard by pandemic-induced payment of claims. The company was forced to sell off eight businesses after Amanda Blanc took over the company’s reins as CEO in July 2020. The company is also planning a share buyback of 750 million pounds.
Aviva Share Price Outlook
Price is now testing resistance at 422.5 (6 January 2020/18 June 2021 highs). A break above this level targets 438.5 (12 November 2019 high), with 455.9 and 487.5 coming into the picture if the price advance continues.
On the other hand, rejection and a pullback from the current resistance allow the Aviva share price to aim for the nearest support at 400.00 (psychological) before 392.8 and 372.9 become additional targets to the south.