American International Group Inc. (AIG) is one of the world's biggest insurance companies. Its customer base includes commercial, institutions and individuals. The company's product offerings and solutions include life insurance, property & casualty insurance, and retirement and financial services.
The company's global footprint covers 70 countries, with North America accounting for more than 70% of the group's revenue. AIG's strategic initiatives are aimed at profitable growth, reinsurance optimisation and underwriting excellence.
The stock is trading just below its 200-day simple moving average (SMA) of $55.80, with upward price momentum as indicated by the Moving Average Convergence Divergence (MACD) indicator. This supports the bullish bias. The Coppock Curve echoes a similar analysis.
Relative Strength Index (RSI) forward calculations suggest that the share will be in overbought territory around $70, which classifies our profit target as realistic.
We suggest a low at-risk allocation for this trade. Increase exposure for a break above $58.
Share Information
| Share code | AIG |
|---|---|
| Industry | Insurance |
| Market Capital (USD) | 39.6 billion |
| One year total return | -4.53% |
| Return year-to-date | -12.92% |
| Current price(USD) | 54.72 |
| 52 weeek high(USD) | 64.88 |
| 52 week low(USD) | 45.66 |
| Financial year end | December |
| Closing paragraph | The stock is trading at a Beta of 1.29, which indicates it is slightly more volatile than the S&P 500 index. Hence, moderate to high volatility is expected in the price going forward. |
Consensus Expectations (Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 4.55 | 6.64 | 7.68 | 8.54 |
| Growth (%) | 45.96 | 15.65 | 11.17 | |
| Dividend Per Share (USD) | 1.28 | 1.40 | 1.49 | 1.71 |
| Growth (%) | 9.22 | 6.58 | 14.97 | |
| Forward PE (times) | 8.24 | 7.13 | 6.41 | |
| Forward Dividend Yield (%) | 2.55 | 2.72 | 3.13 | |
| Closing paragraph | HEPS is expected to see robust growth in the medium term, with demand being bolstered by positive industry dynamics. | |||
Buy/Sell Rationale
Technical Analysis:
Long-term Fundamental view:
| Share Name and position |
STZ - Buy (Continue to hold) |
HACK - Buy (Continue to hold) |
HLMN - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 228.16 | 47.58 | 8.01 |
| Current | 237.06 | 49.07 | 8.18 |
| Movement | 3.9% | 3.1% | 2.1% |
| Summary text |
A bullish megaphone pattern remains of interest. The stock is just above its 200-day simple moving average. Upside price momentum supports the bullish trend.
Our profit target is $252 with a trailing stop-loss of $227. Exit the position on 21 June 2023. |
The price remains above key support levels. The stock is trading above its 200-day simple moving average, with upside price momentum supporting a bullish trend direction.
Our profit target is $55 with a trailing stop-loss of $47. Exit the position around 4 August 2023. |
The price is exhibiting repetitive cycles in sequences. Testing its 200-day simple moving average, which is also its 23.6% Fibonacci retracement level. Fading downside momentum supports the trade.
Our profit target is $10 with a trailing stop-loss at $7.50. Exit the position on 10 October 2023. |
| Share Name and position |
COST - Buy (Continue to hold) |
NCLH - Buy (Continue to hold) |
VXF - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 501.27 | 14.47 | 139.26 |
| Current | 508.03 | 14.82 | 138.95 |
| Movement | 1.3% | 0.1% | -0.2% |
| Summary text |
A confluence of technical indicators that align with a bullish trend remain of interest. The share crossed its 200-day simple moving average. Upside price momentum supports the trade.
Our take profit target remains at $560 with a stop-loss at $486. Exit the position around 7 July 2023. |
The stock is trading within a narrow price range and currently testing its 200-day simple moving average. Upward momentum supports the bullish trend.
Our profit target is $18 with a stop-loss of $13. Exit the position on 19 July 2023. |
An incomplete symmetrical triangle pattern is of interest. The ETF is testing its 200-day simple moving average, with fading downside momentum supporting the bullish trend.
Our profit target is $153 with a stop-loss at $134. Exit the position on 2 November 2023. |
