AIG Shares Tumble Despite 2nd Straight Profitable Quarter (AIG)

Created by Dividend.com

Shares of AIG (AIG) are down 11% in pre-market trading despite reporting a third-quarter profit of $455 million, or 68 cents a share, compared to a loss of $24.5 billion, $181.02 a share, in the year-ago.

Shares are trading lower following the comments from Chief Executive Officer Robert H. Benmosche, where he said the company will continue to focus on stabilizing and strengthening our businesses, but expects continued volatility in reported results in the coming quarters, due in part to charges related to ongoing restructuring activities.

The insurer has received aid packages with a total value of more than $182 billion from the government, from which the government has received an 80 percent stake in the company.

The Bottom Line
Shares of AIG are off its 52-week highs of $56 a share. The stock has near-term technical support in the $30-$34 price area. If the shares can rebound from today’s drop, we see overhead resistance around the $44-$46 price levels. We do not currently rate this former dividend-paying stock, but we do follow the company closely.

AIG (AIG) does not currently pay a dividend.

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