American International Group, Inc. (NYSE:AIG) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts maintain a “Hold” consensus on AIG: Twelve of 19 analysts rate the stock a hold and seven rate it a buy, with an average 12-month price target of approximately $88.28.
• AIG exceeded quarterly earnings expectations with adjusted EPS of $2.00, up from $1.81 year over year, driven by stronger underwriting income and lower catastrophe losses. However, revenue of $7.08 billion fell short of the $7.25 billion consensus estimate.
• The company declared a quarterly dividend of $0.50 per share, equivalent to $2.00 annually and a yield of about 2.5%; institutional investors own approximately 90.6% of AIG’s outstanding stock.

Shares of American International Group, Inc. (NYSE:AIG - Get Free Report) have received an average recommendation of "Hold" from the nineteen analysts that are presently covering the firm, Marketbeat reports. Twelve research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $88.2778.

Several research firms recently commented on AIG. Mizuho increased their target price on shares of American International Group from $86.00 to $89.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Weiss Ratings upgraded shares of American International Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 2nd. Piper Sandler reaffirmed a "neutral" rating and issued a $80.00 price target (down from $88.00) on shares of American International Group in a report on Wednesday, July 15th. Wells Fargo & Company increased their price objective on American International Group from $85.00 to $89.00 and gave the company an "equal weight" rating in a research report on Thursday, July 9th. Finally, Keefe, Bruyette & Woods reduced their price objective on American International Group from $98.00 to $95.00 and set an "outperform" rating for the company in a research note on Wednesday, July 8th.

Hedge Funds Weigh In On American International Group

A number of institutional investors have recently bought and sold shares of AIG. Price T Rowe Associates Inc. MD boosted its holdings in shares of American International Group by 39.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 16,371,853 shares of the insurance provider's stock worth $1,400,613,000 after buying an additional 4,661,246 shares during the period. Franklin Resources Inc. raised its holdings in shares of American International Group by 36.9% during the fourth quarter. Franklin Resources Inc. now owns 15,618,321 shares of the insurance provider's stock valued at $1,336,147,000 after acquiring an additional 4,210,363 shares during the period. Hotchkis & Wiley Capital Management LLC lifted its position in shares of American International Group by 22.0% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 10,256,290 shares of the insurance provider's stock valued at $805,529,000 after acquiring an additional 1,846,979 shares in the last quarter. Bank of New York Mellon Corp lifted its position in shares of American International Group by 6.1% in the 1st quarter. Bank of New York Mellon Corp now owns 8,237,375 shares of the insurance provider's stock valued at $619,862,000 after acquiring an additional 474,035 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC boosted its stake in American International Group by 10.8% in the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,482,558 shares of the insurance provider's stock worth $640,133,000 after purchasing an additional 731,802 shares during the period. Hedge funds and other institutional investors own 90.60% of the company's stock.

Key Stories Impacting American International Group

Here are the key news stories impacting American International Group this week:

• Positive Sentiment: Second-quarter earnings exceeded expectations. AIG reported adjusted earnings of $2.00 per share, up from $1.81 a year earlier and ahead of consensus estimates ranging from $1.89 to $1.92. Strong underwriting income and lower catastrophe losses were key drivers. AIG Beats Q2 Earnings Estimates on Robust Underwriting Income
• Positive Sentiment: Premium growth was broad-based. Net premiums written increased across all three of AIG’s business lines, reinforcing management’s view that organic growth and recent strategic transactions are strengthening the company’s diversified insurance platform. AIG Q2 earnings beat as NPW grows across all three lines
• Positive Sentiment: AIG declared a quarterly dividend of $0.50 per share. The dividend is payable September 30 to shareholders of record on September 16, implying $2.00 in annualized payments and a yield of approximately 2.5% based on the referenced share price.
• Neutral Sentiment: Barclays raised its price target modestly to $81 from $80 while maintaining an “equal weight” rating. The revised target suggests limited near-term upside and does not represent a strong bullish endorsement.
• Negative Sentiment: Revenue fell short of expectations. Quarterly revenue was approximately $7.08 billion, below the $7.25 billion consensus forecast. Weaker investment income partly offset the improvement in underwriting results, giving investors a reason to temper their reaction to the earnings beat. AIG quarterly earnings report

American International Group Trading Up 0.0%

Shares of American International Group stock opened at $78.80 on Monday. The business has a fifty day simple moving average of $77.28 and a 200-day simple moving average of $76.77. American International Group has a fifty-two week low of $71.25 and a fifty-two week high of $87.29. The firm has a market cap of $41.78 billion, a price-to-earnings ratio of 14.40, a price-to-earnings-growth ratio of 0.72 and a beta of 0.52. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.23.

American International Group (NYSE:AIG - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The insurance provider reported $2.00 EPS for the quarter, topping the consensus estimate of $1.92 by $0.08. American International Group had a net margin of 11.13% and a return on equity of 11.03%. The firm had revenue of $7.08 billion for the quarter, compared to analysts' expectations of $7.25 billion. During the same period in the previous year, the business earned $1.81 earnings per share. On average, equities analysts forecast that American International Group will post 7.99 EPS for the current fiscal year.

American International Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Wednesday, September 16th. American International Group's dividend payout ratio is currently 36.56%.

About American International Group

American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk.

The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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