According to Zacks, “American International Group Inc. shares have outperformed its industry year to date. The company's numerous divestitures undertaken for the past many years have streamlined it to a great extent thus creating business synergy. The company's acquisitions will further help it to expand in profitable markets. Its cost control efforts are also impressive. The use of funds for share buybacks has also been accretive to its bottomline. The company's use of reinsurance plan has reduced its capital risk thus allowing it to focus on its business. Nevertheless, its revenues have suffered over the years from declining premium due to disciplined underwriting, competitive market conditions and reduction in business, resulting from numerous divestitures. Weakness in the General Insurance segment is also a concern. Its exposure to catastrophe loss also remains a headwind.”
Several other research firms have also recently commented on AIG. Bank of America restated a buy rating and set a $46.00 price target on shares of American International Group in a report on Thursday, April 11th. Wells Fargo & Co restated a buy rating and set a $54.00 price target on shares of American International Group in a report on Wednesday, February 13th. Credit Suisse Group assumed coverage on shares of American International Group in a report on Tuesday, February 5th. They set a neutral rating and a $46.00 price target for the company. ValuEngine cut shares of American International Group from a hold rating to a sell rating in a report on Monday, February 4th. Finally, Compass Point began coverage on shares of American International Group in a report on Tuesday, January 15th. They set a neutral rating and a $44.00 price target for the company. Six analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. The stock presently has an average rating of Buy and a consensus price target of $55.07.
American International Group (NYSE:AIG) last posted its quarterly earnings results on Wednesday, February 13th. The insurance provider reported ($0.63) EPS for the quarter, missing the consensus estimate of $0.47 by ($1.10). The company had revenue of $12.33 billion for the quarter, compared to analyst estimates of $12.13 billion. American International Group had a positive return on equity of 1.76% and a negative net margin of 0.01%. During the same quarter in the prior year, the business posted $0.57 earnings per share. As a group, analysts anticipate that American International Group will post 4.4 earnings per share for the current year.
American International Group announced that its board has initiated a share buyback plan on Wednesday, February 13th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the insurance provider to purchase up to 5.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which was paid on Friday, March 29th. Shareholders of record on Friday, March 15th were paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 2.74%. The ex-dividend date of this dividend was Thursday, March 14th. American International Group’s dividend payout ratio (DPR) is presently 109.40%.
Several large investors have recently added to or reduced their stakes in the company. Confluence Investment Management LLC raised its position in shares of American International Group by 5.4% in the first quarter. Confluence Investment Management LLC now owns 1,014,377 shares of the insurance provider’s stock valued at $43,679,000 after purchasing an additional 51,766 shares during the period. South Texas Money Management Ltd. raised its position in shares of American International Group by 40.5% in the first quarter. South Texas Money Management Ltd. now owns 891,327 shares of the insurance provider’s stock valued at $38,381,000 after purchasing an additional 256,748 shares during the period. Pennsylvania Trust Co raised its position in shares of American International Group by 90.3% in the first quarter. Pennsylvania Trust Co now owns 41,183 shares of the insurance provider’s stock valued at $1,508,000 after purchasing an additional 19,545 shares during the period. Hodges Capital Management Inc. bought a new position in shares of American International Group in the first quarter valued at approximately $215,000. Finally, Raymond James Trust N.A. raised its position in shares of American International Group by 28.2% in the first quarter. Raymond James Trust N.A. now owns 10,816 shares of the insurance provider’s stock valued at $466,000 after purchasing an additional 2,382 shares during the period. 91.01% of the stock is currently owned by institutional investors.
American International Group Company Profile
American International Group, Inc provides insurance products for commercial, institutional, and individual customers in North America and internationally. The company's General Insurance segment offers general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products, as well as various risk-sharing and other customized structured programs; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, surety, crop, and marine insurance.
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