Insurance Australia Group stock fundamental analysis (Insurance Australia group stock price target)
Insurance Australia Group stocks are going to see a huge increase. The stocks of this company are listed on the Australian Stock Exchange. The main business of this company is insurance. The majority revenue of this company is currently Australia and New Zealand. If we talk about the results of this company, the fundamentals of this company are very strong. This company is showing huge growth in profits quarter on quarter and year on year. If the business model of any company is strong and the profits of the company are increasing, then there will be a huge increase in shares.
This company does insurance work and you must be aware that there is a huge increase in the demand for insurance in Australia. If there is a huge increase in the demand for insurance then there will be a huge increase in the profits of this company also. The population of Australia was 3.8 Million in 1901 which has increased to 26.8 Million in 2024. And migration is increasing a lot in Australia. If there is a huge increase in migration in Australia then there will be a huge increase in the insurance kind of also. The demand for car insurance, health insurance, term insurance is going to increase a lot in Australia.
If there is an increase in population in Australian market then there will be a huge increase in demand for insurance as well. If there is an increase in insurance then there will be an increase in sales of this company. If there is an increase in sales then there will be an increase in profits of this company as well. If there is an increase in the profits of Insurance Australia group company then ultimately there will be a huge increase in the stock of the company. The price of the stock of any company follows the profits of the company.
Insurance Australia Group stock technical analysis (Insurance Australia group stock price target)
Insurance Australia Group stock has touched a high of 8.89$ in June 2018 and a low of 4$ in June 2022. The current price of this company is 8.5$. This company’s stock has formed a rounding bottom pattern. This company’s stock is going to breakout very soon and reach 13.50$.
Hedge funds trading strategy in Insurance Australia Group (Insurance Australia group stock price target)
The hedge funds started booking profits of around $8.76 in Insurance Australia group stocks. And the hedge funds started booking profits by selling whatever shares they had in delivery of Insurance Australia group stocks around $8.76. After selling the shares in delivery, the fund houses started short selling around $7. The hedge funds started covering their shorts around $4.38.
When this share came to around $4, the hedge funds again started buying Insurance Australia group stocks in delivery. Now hedge funds have started buying in large quantities in delivery. Even at the current price of $5.5, hedge funds are buying Insurance Australia group stocks in delivery. The hedge fund will sell Insurance Australia group stocks delivery at $13.5 and book profits.
Now we will talk about why retail investors make losses in the stock market and hedge funds make huge profits ? (Insurance Australia group stock price target)
When the price of this share reached around $8.76, then hedge funds spread a rumour through media and newspapers that this share is going to cross $10. And around $8.76 retail investors start buying. When retail investors start buying, then hedge funds start selling the stock to retail investors.
When the price reaches $8.76 the hedge funds start selling the stock in delivery and when it reaches $7 and all the deliveries of the hedge funds are finished then the hedge funds start short selling in future contracts. When the hedge funds do short selling they start covering the short in their future contracts till it reaches $4.38.
When this share comes around $4 the hedge funds spread bad news about Insurance Australia group in the media and newspapers and the retail investors start selling the stock. When retail investors start selling the stock at a price of $4 then the hedge funds also start buying the stock in delivery. As soon as this share crosses its old high of $8.76, they buy in delivery.
When this share crosses $8.76, hedge funds start taking aggressive long position in future contracts. When this share reaches around $13.5, hedge funds spread very good news about Insurance Australia Group in the media and newspapers. When the price is running at $13.5, the media people talk of a target of $20. When retail investors start buying at a price of $13.5, hedge funds start selling in their delivery. Hedge funds book profits at $13.5. Or retail investors get trapped by making purchases for around $13.5.
Conclusion (Insurance Australia group stock price target)
Next Target of Insurance Australia group is $13.5 .