The stock price of IAG (ASX: IAG) is trading at the lowest price in about 10 years, so is it time to buy?

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NS Insurance Australia Group Ltd (ASX: IAG) Stock prices have recently been hit by investors. Insurance giant COVID-19 (new coronavirus infection) Pandemic.

At noon on Monday, IAG shares were trading at $ 4.40, down 0.57%. Last month alone, IAG stocks fell nearly 11%, putting pressure on investors’ negative sentiment.

What happened to the IAG share?

There are several possible catalysts as to why IAG’s share price hasn’t made a decent profit in the last 12 months.

recently Transaction updates, The company revealed a rise in net natural disaster billing costs. It condemns the violent storms and hail activity that occurred in October, primarily in South Australia and Victoria.

As a result, insurance companies estimate net natural disaster billing costs for 2010 to be approximately $ 1.045 billion. This is a significant increase from the previously expected $ 765 million.

The $ 280 million retreat forced the IAG to downgrade the scope of its 2010 insurance margin guidance from 10% to 12%. Previously, insurance margin levels ranged from 13.5% to 15.5%.

In addition, the Australian Securities and Investment Commission (ASIC) has been launched. Civil punishment proceedings In Australian federal court.

The allegations are related to the fact that between March 2014 and September 2019, IAG did not give a full discount to a large number of NRMA home, motor, caravan and boat insurance customers.

It is noteworthy that IAG self-reported the issue to ASIC following a review conducted by IAG in 2019. Since then, IAG has embarked on a remedial program for affected policyholders. Refunds are offered to over 80% of affected customers.

What do you think of the broker?

Since IAG released the Business Update on August 2, many brokers have rated the company at similar prices.

Australia’s leading investment company, Morgans, has lowered its 12-month IAG share price target by 5% to $ 5.36. After the proceedings, Macquarie took a similar stance, downgrading the rating by 5.3% to $ 5.40.

However, Citi’s outlook improved slightly compared to other brokers, down 2.6% to $ 5.60.

About the stock price of IAG

Over the last 12 months, IAG’s share price has fallen by more than 17%, down 6.38% year-to-date. However, since July 2019, the company’s stock has lost about 50% of its value.

In contrast, S & P / ASX200 Index (ASX: XJO) has increased by about 10% since this time last year and 2021. The benchmark index also reached a record high of 7,632.8 points in mid-August.

this is, ASX200 outperforms performance IAG strain. The ASX 200 has historically tracked about 6% higher each year.

Based on the evaluation index, IAG Market first For about $ 10.89 billion, about 2.47 billion shares have been issued.

The stock price of IAG (ASX: IAG) is trading at the lowest price in about 10 years, so is it time to buy?

Source link The stock price of IAG (ASX: IAG) is trading at the lowest price in about 10 years, so is it time to buy?

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