What is Rolls-Royce Holdings plc?
Rolls-Royce Holdings plc is a multinational engineering company which designs, manufactures and distributes power systems for multiple applications. The company operates in four key industries: civil aerospace; powers systems; national defence; and technology.
Rolls-Royce grew from the electrical and mechanical business established by Henry Royce in 1884. Today, the name Rolls-Royce can be used to refer to several companies, from luxury auto manufacturing to defence engineering. The ticker RR and the corresponding Rolls-Royce share price refer to the holding company which owns the aerospace, power systems and defence pillars of the broader conglomerate.
The holding company was created out of necessity in 1971 when the original company, Rolls-Royce Ltd, entered into voluntary liquidation following poor market performance and huge losses. Owing to its strategic national security value and defence engineering capabilities, the company was purchased by the British government and placed in the holding company. It would not be until 1987 that the company would once again go public and return to the London Stock Exchange (LSE).
Throughout the 1980s the company underwent a period of sustained growth, which continued in the early years after going public. This was due in part to the strategy of broadening the engines designed and manufactured by the company to suit the needs of the larger civil aviation industry and the increasing number of aircraft models. The company was able to remain stable until huge losses in 2017, brought on by failures in its popular RB211 engines and the costs associated with remedying these shortcomings. These losses forced a decentralised restructuring of the company and layoffs of almost 7 per cent of the workforce. Today, the company operates in more than 50 countries and employs more than 51,000 people.
Performance of Rolls-Royce stock price
The Rolls-Royce share price has been battered by the decreased demand for travel in 2020 as the coronavirus forced many governments to restrict tourism. The Rolls-Royce share price has fallen more than 70 per cent in the 52-week period ending in late 2020. In the face of such a dire reality, the company has been focusing efforts on receiving government funding and new investments. It is yet to be seen if the company will require restructuring in order to survive.
The Rolls-Royce share price has traded within the 52-week range of £271.79-£34.59 with a market cap of more than £1.38bn ($1.82bn, €1.55bn) in late 2020. Rolls-Royce stock trading has an average volume of 47 million shares per day.
How to invest in Rolls-Royce stock
Rolls-Royce stock trading occurs on the London Stock Exchange. Those looking to invest in Rolls-Royce stock can purchase them directly through the exchange, via a broker, or indirectly through an index which includes RR. Traders are also able to purchase derivatives based on RR shares such as CFDs or options.
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Tokenised shares trading guide
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