AIG Punished For EPS & Revenue Beat, Increased Buyback & Raised Dividend

em>Joel Elconin is the co-host of

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American International Group

shares are trading lower by $2.24 at $61.91 in Tuesday's session. Despite a Q2 beat for EPS ($1.32 vs. Est. $1.23) and better revenues ($15.7B vs. Est $14.48B), an additional $5B share buyback and increased dividend from $0.125 to $0.28/share, it is being battered in today's session. Off the headline numbers, the issue spiked to $66.15 in after hours trading, but has been all downhill ever since, By the opening of the regular session it was under $64, and the first print of the day ($63.70) turned out to exact high for the day. The ensuing decline took AIG all the $60.32 before rebounding back to the $62 level. That marks the lowest level and coincides with its June 10 low at $60.12. Today's price action is taking place on much higher than average volume. So far, its has traded 18.3M shares compared to its 20 day average of 6.3M with over one hour remaining in the session.