Athene Holding (ATH) Stock Jumps 7%: Will It Continue to Soar?
Athene Holding (ATH) shares ended the last trading session 7% higher at $82.17. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.9% gain over the past four weeks.
The rally was largely driven by a higher level of sales, strategic investments, and sufficient liquidity.
Recently, Athene announced to buy a majority interest in Newfi, a technology driven multi-channel mortgage lender. The investment in Newfi will be managed by Apollo.
Athene continues to make strategic investments in platforms that provide financial returns in addition to their strategic benefits. The pending merger with Apollo remains on track and is expected to be closed in January 2022. The merger is likely to accelerate asset and liability origination, widen distribution channels, and create a leading global solutions provider with a solid capital base.
This company is expected to post quarterly earnings of $2.14 per share in its upcoming report, which represents a year-over-year change of +39.9%. Revenues are expected to be $1.55 billion, up 1.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Athene Holding, the consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ATH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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