The Unilever (LSE:ULVR) share price hasn’t done well this year. The stock is down from around 4,800p in November of last year to around 3,900p currently. Although there are many reasons for the decline, here are some key reasons why I think the ULVR share price fell and what I’d do as a result.
Why I think the ULVR share price weakened recently
I reckon the ULVR share price has fallen for two reasons. First, I think stock rotation could have something to do with Unilever’s decline. Given its defensive position, many larger institutional investors may have gone into Unilever as a ‘safe haven’ during the first part of the pandemic, when things were very uncertain. Given that it’s a leading consumer staple whose main products don’t cost very much, many investors likely reasoned that the pandemic wouldn’t greatly affect Unilever’s demand.
With the better-than-expected initial Covid-19 vaccine news which … Read more