AIG PROFIT BEATS ESTIMATES, STOCK SPIKES
AIG’s stock is currently trading at 50.24-higher by 6.73% as compared to its previous close. In the Premarket trading session on Tuesday, the stock was trading higher by 7.58%. The stock has pared some of its earlier gains after the opening bell.
The insurance company reported its first-quarter earnings after the market close on Monday. AIG generated an adjusted EPS of $1.58 for the first quarter. The EPS was above the market expectation of $1.06. AIG brought in $12.32 billion in revenue for the first quarter. The revenue was above the consensus estimates of $12.07 billion.
The company posted better-than-expected quarterly earnings as its general insurance operation recorded an underwriting profit for the first time in a decade. Stocks of AIG rose sharply after its CEO said he expects the company to post an underwriting profit for the full year.
The general insurance unit’s underwriting income was $179 million in the first quarter. AIG, however, posted an underwriting loss of $251 million a year earlier.
On the technical front, the RSI is currently at 76.06% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 73% and suggests that the market can move in the upward direction.
TRADE SUGGESTION- LIMIT BUY AT 50.14 TAKE PROFIT AT 50.74 STOP LOSS AT 49.84