Greencoat UK Wind share price tumbled to the lowest level since February 2022 as concerns about the UK economy and Trussonomics rose. The UKW stock crashed to a low of 139.10p, which was about 17.50% below the highest level this year. Its market cap has dropped to more than 3.48 billion pounds. The shares are about 5.5% higher than where they were at the beginning of the year.
Is UKW a good buy?
Greencoat UK Wind is a dividend-focused company that invests in the energy sector. It has over 7 billion pounds in assets under management, making it one of the biggest dedicated firms in Europe. It invests primarily in wind energy, renewable heat, bioenergy, and solar energy. It operates 44 wind farms.
Greencoat UK Wind investors love it for its dividends. For one, the company typically increases its dividend in line with the retail price index (RPI) inflation. This makes it an ideal long-term investment for income-focused investors.
In the most recent results, the company said that it generated about 2,175 GWh of renewable energy. As a result, the company’s wind farms generated over 328 million pounds in the first half of the year. It increased its dividends to 3.86 pence per share.
Greencoat UK Wind share price has done well in the past few years as investors embrace clean energy and as demand rises. The recent plunge is mostly because of the new administration’s policies that have sent shivers in the UK economy.
Greencoat UK Wind share price forecast
The daily chart shows that the UKW stock price has made a strong recovery in the past two days. It has made a strong recovery after it tumbled to a low of 139p. The shares have moved above the important resistance level at 147.4p and is below the 25-day and 50-day moving averages. 147.4p was the lowest level on May 25 this year. It is also above the ascending trendline shown in green.
Therefore, there is a likelihood that the Greencoat UK Wind share price will likely keep rising as buyers target the next key resistance level at 160p. The stop-loss of this trade will be at 147p.
