This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The AIG stock is up 8% since it announced its fourth-quarter figures for 2013 in February. The latest update from the insurer was well received by traders as earnings exceeded estimates. This led to an increase in the dividend and the share buyback scheme.
The insurer started paying dividends last year after it repaid $180 billion to the US government because of the state bailout in 2008. This is a good example of a company coming out the other side of the credit crisis.
The share price is trading at 5313, well above the 200-day moving average of 4942, and recently the stock has broken out of the 4800-5200 range. If the results exceed estimates a test of the 5500 level is possible. However, if they fail, the share price could fall back to the 50-DMA of 5039.