Zacks Investment Research upgraded shares of American International Group, Inc. (NYSE:AIG) from a hold rating to a buy rating in a research note published on Wednesday, July 5th. The firm currently has $70.00 price target on the insurance provider’s stock.
According to Zacks, “AIG recently appointed its new CEO, who we believe will speed up turnaround activities at the company. The company has been taking up several measures like strategic divestitures, asset sales, increase in share buybacks, dividend hikes, personnel changes, cost control, reinsurance deals, and lowering of hedge fund investments in order to deliver better earnings result by curbing the probable volatilities. Though some of these efforts have paid off to some extent a lot more reforms are required for a turnaround. The company’s commercial lines business has also been underperforming. Regulatory uncertainty and exposure to catastrophes are other headwinds. Shares of the company have underperformed its sector year to date.”
Other equities research analysts have also recently issued reports about the company. UBS AG reiterated a neutral rating and issued a $66.00 target price on shares of American International Group in a research note on Tuesday, March 14th. Credit Suisse Group set a $72.00 target price on American International Group and gave the company a buy rating in a research note on Saturday, April 15th. J P Morgan Chase & Co cut their target price on American International Group from $69.00 to $65.00 and set a neutral rating on the stock in a research note on Monday, April 3rd. Royal Bank Of Canada reiterated a buy rating and issued a $71.00 target price on shares of American International Group in a research note on Monday, April 24th. Finally, Morgan Stanley upgraded American International Group from an equal weight rating to an overweight rating and cut their target price for the company from $62.87 to $61.82 in a research note on Tuesday, May 16th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, nine have issued a buy rating and two have issued a strong buy rating to the company. American International Group presently has a consensus rating of Buy and an average price target of $65.15.
American International Group (NYSE:AIG) opened at 64.20 on Wednesday. The stock has a market cap of $59.43 billion, a P/E ratio of 130.49 and a beta of 1.13. The firm’s 50-day moving average is $63.59 and its 200-day moving average is $63.21. American International Group has a 12 month low of $53.93 and a 12 month high of $67.47.
American International Group (NYSE:AIG) last posted its earnings results on Wednesday, May 3rd. The insurance provider reported $1.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.11 by $0.25. The company had revenue of $11.31 billion for the quarter, compared to analysts’ expectations of $11 billion. American International Group had a return on equity of 5.36% and a net margin of 1.00%. During the same period last year, the business posted $0.65 earnings per share. On average, equities analysts forecast that American International Group will post $5.02 earnings per share for the current fiscal year.
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The business also recently declared a quarterly dividend, which was paid on Wednesday, June 28th. Investors of record on Wednesday, June 14th were paid a $0.32 dividend. The ex-dividend date was Monday, June 12th. This represents a $1.28 dividend on an annualized basis and a yield of 1.99%. American International Group’s dividend payout ratio is currently 412.92%.
American International Group declared that its Board of Directors has authorized a share buyback program on Wednesday, May 3rd that authorizes the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization authorizes the insurance provider to buy up to 4.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s management believes its stock is undervalued.
In related news, CEO Brian Duperreault purchased 80,000 shares of the company’s stock in a transaction that occurred on Thursday, May 18th. The shares were purchased at an average price of $61.48 per share, with a total value of $4,918,400.00. Following the purchase, the chief executive officer now owns 80,000 shares of the company’s stock, valued at approximately $4,918,400. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.52% of the company’s stock.
A number of institutional investors have recently modified their holdings of the company. Norges Bank acquired a new position in American International Group during the fourth quarter valued at $531,208,000. Old Mutual Global Investors UK Ltd. boosted its position in American International Group by 450.2% in the first quarter. Old Mutual Global Investors UK Ltd. now owns 2,166,582 shares of the insurance provider’s stock valued at $135,259,000 after buying an additional 1,772,801 shares during the period. Orbis Allan Gray Ltd boosted its position in American International Group by 74.5% in the fourth quarter. Orbis Allan Gray Ltd now owns 3,446,372 shares of the insurance provider’s stock valued at $225,083,000 after buying an additional 1,471,384 shares during the period. TD Asset Management Inc. boosted its position in American International Group by 49.4% in the first quarter. TD Asset Management Inc. now owns 3,245,019 shares of the insurance provider’s stock valued at $202,587,000 after buying an additional 1,073,157 shares during the period. Finally, Swiss National Bank boosted its position in American International Group by 20.9% in the first quarter. Swiss National Bank now owns 3,639,456 shares of the insurance provider’s stock valued at $227,211,000 after buying an additional 629,400 shares during the period. 86.16% of the stock is currently owned by hedge funds and other institutional investors.
American International Group Company Profile
American International Group, Inc is a global insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers. Its segments include Commercial Insurance, Consumer Insurance, Other Operations and Legacy Portfolio.
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