Should I buy Old Mutual stock in 2025? Complete ZA Analysis

What is Old Mutual?

How much is the Old Mutual stock?

The price of Old Mutual stock is rising this week. As of now, Old Mutual trades at 1,190 ZAR on the JSE, showing a 3.21% gain (+37 ZAR) over the last 24 hours and a 4.85% rise for the week. The company’s market capitalization stands at 52.38 billion ZAR, with an average three-month trading volume of 20.5 million shares.

Backed by analyst optimism and robust fundamentals, Old Mutual remains a compelling option for investors seeking steady growth with attractive income in the South African market.

Our complete analysis of Old Mutual stock

After an in-depth examination of Old Mutual Limited’s latest financial disclosures alongside multi-year share price trends and a proprietary blend of quantitative and qualitative signals—including key financial ratios, technical momentum, market flows, and peer group comparison—it is clear that Old Mutual currently presents compelling features within the South African financial sector. Our model integrates macroeconomic context and recent structural shifts in the business, offering a nuanced, data-driven view. So, why might Old Mutual stock once again become a strategic entry point into the financial services market in 2025?

Recent Performance and Market Context

Old Mutual (JSE: OMU.JO, LSE: OMU) has displayed notable resilience and adaptability in an evolving macroeconomic landscape. As of 30 May 2025, the share price stood at 1,190 ZAR on the JSE, reflecting a strong 3.21% uplift over the session and a weekly gain of +4.85%. Over the past year, the stock advanced 5.22%, outperforming many domestic peers despite a modest -6.23% retracement over six months—largely in line with cyclical pressure on asset managers amidst global uncertainty.

Several positive events have bolstered sentiment. Perhaps most prominent was the appointment of Jurie Strydom as incoming CEO; the announcement in May 2025 triggered a swift 10% appreciation, demonstrating market faith in leadership continuity and Strydom’s industry expertise. Old Mutual’s continued geographic diversification across Africa, coupled with the 2025 launch of Old Mutual Bank under the seasoned leadership of Clarence Nethengwe, underscores a proactive growth agenda at a time of increased digitisation and evolving consumer financial needs.

At the macro level, a more accommodative South African Reserve Bank tone, stabilising inflation, and robust demand in personal finance and insurance products across the continent all provide favourable sectoral tailwinds. The company's fundamentals, paired with positive analyst consensus (implied 30% upside to the consensus target of 1,313.43 ZAR), encourage careful reappraisal of Old Mutual’s return profile.

Technical Analysis

From a technical toolkit, the stock exhibits emerging bullish structures. The Relative Strength Index (RSI) finds itself in a neutral-to-bullish zone with readings between 43 and 60 across major platforms—indicating ample upward capacity without nearing overbought territory.

The MACD signals (0.73 on TipRanks, 0.35 on Investing.com, 10 on TradingView—each labelled “Buy”) affirm tightening positive momentum in the short-to-medium term. Notably, the price action is trading above the key 20-, 50-, and 100-session moving averages (all in “Buy” territory), while the 200-day average at 49.46 pence (LSE) remains a medium-term pivot, suggesting any sustained move above this threshold could unleash further buying interest.

• Support: ~44 pence / 1,100 ZAR zone—well defined, repeatedly confirming buyers’ interest.
• Resistance: 50 pence; a medium-term technical breakout above this could catalyse new inflows.
• 52-week range: 38.70–61.50 pence, indicating solid recovery potential back towards historical highs.

This technical posture, combined with high trading volumes, supports a constructive outlook for both short-term traders and investors seeking entry during a period of reorganised leadership and business reinvigoration.

Fundamental Analysis

Old Mutual’s 2024 annual performance reinforced its reputation for operational discipline and strategic evolution. Key metrics include:

• EPS (2024): 170 cents ZAR, reflecting stable underlying profitability.
• Net underwriting margin: Expanded by a robust 470 basis points to 4.8%—underscoring successful risk management and pricing in the insurance book.
• Dividend: Generous 9.04% yield, maintained at 1.04 ZAR per share, making OMU a standout in the yield-hungry South African equity landscape.
• P/E Ratio: At just 7.0, Old Mutual trades at a significant discount to historical and sector averages, inviting attention to this relative value anomaly.
• Capital Strength: Assets under management continue to rise, reflecting sticky customer relationships and disciplined asset allocation.

Strategically, Old Mutual’s leadership remains committed to revenue diversification: the planned expansion in retail banking, advancements in digital platforms, and organic growth across emergent African economies are clear markers of both defensive and offensive positioning. The firm leverages an iconic 180-year-old brand, enjoys dominant South African market share, and proactively addresses evolving regulatory dynamics.

Volume and Liquidity

Liquidity metrics further reinforce an attractive investment profile:

• Average 3-month trading volume: Approximately 20.5 million shares on JSE, reflecting active participation and depth, which is often a proxy for institutional confidence.
• Public float: A substantial 4.27 billion shares—supporting dynamic price discovery and ensuring the stock remains responsive to both local and international capital flows.

Such volumes facilitate efficient entry and exit and enable tactical positioning without significant slippage—an important consideration for both retail and professional investors.

Catalysts and Positive Outlook

Several identifiable catalysts position Old Mutual for outsized share price appreciation in the coming quarters:

• Executive transition: Jurie Strydom’s appointment as CEO, with a track record in insurance innovation, is widely viewed as a “refresh” at the top.
• Banking sector expansion: The imminent launch of Old Mutual Bank, under a proven retail banking leader, unlocks new distribution channels and earnings streams.
• Africa growth narrative: Structural demographic tailwinds, coupled with rapid urbanisation and rising financial inclusion, position Old Mutual to benefit from rising insurance and banking penetration.
• Digitalisation: Accelerated investment in digital products enhances customer engagement, reduces operational costs, and improves scalability.
• ESG and regulatory positioning: Proactive adaptation to new guidelines and a renewed ESG focus further enhance Old Mutual’s brand and sector leadership.

The broader context of stabilising South African macro indicators, a strengthening rand, and increasing appetite for high-quality financial assets buttress this outlook.

Investment Strategies

Short-Term

• Technical traders could view the current pullback as an opportunity to capitalise on mean-reversion towards the 50 pence / 1,300 ZAR resistance. The recent CEO change event, accompanied by a surge in volume and rapid price appreciation, validates near-term upside momentum.

Medium-Term

• Swing and position investors might look to accumulate around current technical support, harnessing the expected tailwind of improved profitability, sector expansion, and consensus analyst upgrades.
• Dividend-seekers benefit from the peer-leading yield, which offers a cushion against short-term volatility while awaiting capital appreciation.

Long-Term

For core allocations, Old Mutual seems particularly well-positioned thanks to its robust market share, multi-decade brand equity, sectoral diversification, and identified expansion plans. The attractive P/E and disciplined capital return practices anchor longer-term investment theses.

In sum, the current juncture offers “ideal positioning” for varied investors—those seeking near-term technical reversals and those ready to participate ahead of transformative growth milestones such as banking entry and new digital launches.

Is it the Right Time to Buy Old Mutual?

Converging evidence from technical signals, robust underlying financials, sectoral catalysts, and a marked improvement in leadership and strategic vision all point to Old Mutual as a stock that may be entering a new bullish phase. The fundamentals justify renewed interest: a compressed valuation multiple, a compelling dividend yield, solid capital efficiency, and demonstrable progress on both operational and leadership fronts.

With the company actively addressing the twin levers of innovation and expansion, and market sentiment clearly shifting positively—reflected in above-average trading volumes and a consensus 30% price target upside—the case for considering Old Mutual as part of a dynamic investment portfolio is increasingly persuasive.

In a transforming South African and pan-African financial services landscape, Old Mutual seems to represent an excellent opportunity for investors attentive to both value and growth, offering an exceptional blend of resilience, yield, and exposure to high-potential themes. As Old Mutual prepares for its next era of leadership and strategic renewal, the current environment offers a rare chance to participate in its journey of value creation.

How to buy Old Mutual stock in South Africa?

Buying shares in Old Mutual is simple and secure when you use a regulated online broker. South African investors can choose between two main methods: buying shares outright (spot buying), where you own the shares directly, or trading Contracts for Difference (CFDs), which allow you to speculate on price movements without owning the stock. Each approach has its own strengths and costs, giving flexibility based on your investment goals. For a clear overview of the leading brokers and their fees, you’ll find a detailed comparison further down this page.

Cash buying

A cash (spot) purchase means you buy Old Mutual shares on the Johannesburg Stock Exchange (JSE) and become a part-owner of the company. You benefit directly from any dividends paid and any increase in share price. Brokers in South Africa typically charge a fixed commission per order, often in the range of R80–R150 per transaction. For example, if the Old Mutual share price is R1,190 and you invest $1,000 (about R18,400 at R18.4 per USD), you could buy around 15 shares (R17,850), accounting for a brokerage fee of approximately R100.

Example

✔️ Gain scenario: If the share price rises by 10%, your shares are now worth about R19,635 ($1,065).
Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFDs (Contracts for Difference) let you trade Old Mutual shares without physically owning them. You speculate on price changes with the added advantage of leverage, but note this increases both potential gains and risks. CFD brokers charge a spread (difference between buy and sell price) and daily overnight financing fees if you hold positions after market close. For instance, with a $1,000 (R18,400) deposit and 5x leverage, you get exposure to R92,000 (about $5,000) worth of shares.

Example

✔️ Gain scenario: If Old Mutual rises by 8%, your 5x leveraged position delivers a 40% return.
Result: +$400 gain on your original $1,000 stake (excluding fees).

Final advice

Before you invest, it’s essential to compare broker fees, platform features, and terms—costs can vary and have a significant impact on your returns. Whether you opt for direct share ownership or the flexibility of CFDs should match your investment style and risk tolerance. For your convenience, a broker comparison tool is available further down to help you make an informed choice and start your investment journey with confidence.

Our 7 tips for buying Old Mutual stock

The latest news about Old Mutual

Old Mutual stock gained nearly 5% on the JSE this week, with positive momentum in local trading. The share price on the Johannesburg Stock Exchange closed at 1,190 ZAR on 30 May 2025, reflecting a strong week-on-week advance of +4,85% as well as a +3,21% daily rise, signaling growing investor confidence. Trading activity remained robust, with a trailing three-month average of 20,5 million shares exchanged daily. These gains come against a backdrop of improving market sentiment towards financials in South Africa, positioning Old Mutual as a local sector leader and reinforcing its relevance to domestic investors.

The nomination of Jurie Strydom as CEO has triggered renewed optimism, reflected in a 10% jump in the stock in May. Strydom, a well-respected figure with deep experience in insurance leadership, officially takes office on 1 June 2025, succeeding Iain Williamson, who retires in August after five years at the helm. Market reaction to this transition has been positive, with the stock surging following the leadership announcement, indicating analyst and investor approval of Strydom’s appointment and perceived strategic clarity for Old Mutual’s future, particularly given his track record in the financial sector.

Old Mutual’s 2024 annual results confirmed solid fundamentals, with improvement in underwriting margins and a maintained dividend. The group delivered adjusted earnings per share of 170 ZAR cents, kept its total dividend unchanged, and improved its net underwriting margin by 470 basis points to 4,8%. These figures were in line with analyst expectations and underscore the resilience and operational strength of Old Mutual’s core business in South Africa, setting a constructive tone for income-focused investors and supporting long-term shareholder value in the local market.

The forthcoming launch of Old Mutual’s South African banking arm signals strategic diversification and new local growth prospects. With Clarence Nethengwe appointed as CEO of Old Mutual Bank, the group is entering the domestic retail banking market in 2025. This move is a significant step in Old Mutual’s expansion beyond traditional insurance and asset management, aiming to capture a broader share of South Africa’s financial services market and reflecting a commitment to digital innovation and inclusive financial solutions for the region.

Analyst consensus and technical signals suggest continued positive sentiment, with a strong upside target and favorable buy indicators. The average analyst price target now stands at 1,313.43 ZAR—around 10% above current levels—and technical analysis is predominantly positive, with MACD and moving averages indicating a buy across key platforms. The company’s low price/earnings ratio (7.00), robust 9% dividend yield, and historically low share price beta (0.84) further highlight Old Mutual as a stable and attractive investment for South African portfolios, particularly amid growing optimism for the sector’s medium-term outlook.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.