If You Invested $1,000 In Rolls-Royce Stock One Year Ago, Here's How Much You'd Have Now

Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return over the last 12 months is 31.8%. But there is no question some big-name stocks performed better than others along the way.

Rolls-Royce’s Bumpy Ride: One company that has been a decent investment in the last year has been British aerospace and defense engine maker Rolls-Royce Holding PLC ADR RYCEY.

Many investors are familiar with Rolls-Royce Motor Cars, which once produced luxury automobiles. However, BMW BMWYY acquired Rolls-Royce Motor Cars for $570 million in 1998. Today, Rolls-Royce is the world’s second-largest producer of aircraft engines, behind only General Electric Company GE.

Like many other industrial stocks, Rolls-Royce’s business was hit hard by the pandemic. In 2019, Rolls-Royce reported a net loss of $1.79 billion and 5.5% revenue growth. In 2020, Rolls-Royce net losses jumped to $4.32 billion and revenue plunged 28.7%

At the beginning of 2020, Rolls-Royce shares were trading at around $8.99. By the beginning of March, the stock had dropped to $8.08 after news of the coronavirus spreading in China prompted concerns about a pandemic.

Rolls-Royce ultimately bottomed at $3.04 in early April, just weeks after the S&P 500 bottomed. Unfortunately for Rolls-Royce investors, the post-pandemic rebound didn’t last for long.

By June, Rolls-Royce shares were back above $5, but they soon dropped back below $5 and haven’t returned since

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In fact, Rolls-Royce shares dropped to their low point of 2020 almost exactly a year ago, hitting $1.38 on Oct. 2. The stock made it back up to as high as $3.56 in November before stalling once again.

Rolls-Royce In 2021, Beyond: So far, Rolls-Royce’s OTC-listed shares have not made it back above $2 in 2021. After dropping to new all-time lows of $1.21 in July, the stock has since bounced back to as high as $1.99 in September.

Still, Rolls-Royce investors who bought the dip in the stock exactly one year ago and held on have generated a big return on their investment. In fact, $1,000 in Rolls-Royce stock bought on Oct. 5, 2020, would be worth about $2,923 today, assuming reinvested dividends.

Looking ahead, analysts are expecting Rolls-Royce’s stock to continue its rebound in the next 12 months. The average price target among the 14 analysts covering the stock is $4.88, suggesting 157.9% upside from current levels.

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