AIG announces a strong increase in earnings per share
After last Monday's festive day on Wall Street, Tuesday saw a new battery of business results, among which were those of the insurance giant AIG.
AIG is an American insurance company which offers its wide variety of products and services globally. It specialises in both the life and health insurance sectors, while also providing commercial segment insurance, consumer insurance, accident or retirement plans, and is one of the most important insurers worldwide.
After the market closed, it announced its 2020 earnings, in which we could observe a mixed result, since although earnings per share exceeded that expected by the consensus, total income was lower. Specifically, earnings the per share grew by $0.94 per share, with income growth of $10.540 million, compared to $0.935 per share and $10.670 million expected by the market consensus.
Technically speaking, this year, AIG has accumulated a rise of more than 10%, making yesterday’s daily close a positive one with a rise of more than 1.8%, although after the release of these results, the pre-opening is currently trading in negative, being slightly more than 2% lower.
If we look at the daily chart, once it marked annual lows after the sharp falls at the beginning of the pandemic, the uptrend seems quite clear after confirming the triple cross with the 200-session moving average, although it is currently trading in a lateral consolidation range between the green and red stripes with the price fighting with its resistance level.
These results may cause a correction in the short term, although we must study the behaviour of the price at its current resistance level, since if the price finally bounces down while maintaining its current levels of support, the level of previous highs coinciding With the 40 session orange average at $ 39.60 and the lower band of the lateral channel, the feeling may continue to be bullish so the price could try to attack the resistance zone again.
Once this level is exceeded, the upward trend would have its way up to a level close to $50 per share.
Source: Admiral Markets MetaTrader 5. AIG daily chart. Data range: from October 17, 2019 to February 17, 2021. Prepared on February 17, 2021 at 12:40 CET. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: -26.24%
- 2019: 30.25%
- 2018: -33.85%
- 2017: -8.77%
- 2016: 5.39%
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