American International Group (NYSE:AIG) Raised to "Buy" at The Goldman Sachs Group

Key Points

• The Goldman Sachs Group upgraded AIG from "neutral" to "buy" and set a $90 price objective, implying roughly a 13% upside from the prior close.
• AIG reported Q4 EPS of $1.96 (vs. $1.90 expected) while revenue missed at $6.55B (vs. $6.99B), and the stock trades at a P/E of 14.69 with a 52‑week range of $71.25–$88.07.
• Despite some bullish calls, the Street consensus remains a Hold with a $87.95 target, and institutional investors now control about 90.6% of the shares after several funds increased stakes.

American International Group (NYSE:AIG - Get Free Report) was upgraded by The Goldman Sachs Group from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Thursday, Marketbeat Ratings reports. The firm currently has a $90.00 price objective on the insurance provider's stock. The Goldman Sachs Group's price objective would indicate a potential upside of 13.07% from the company's previous close.

Several other analysts also recently weighed in on AIG. TD Cowen boosted their price target on American International Group from $86.00 to $90.00 and gave the company a "hold" rating in a research note on Tuesday, December 16th. Bank of America dropped their target price on American International Group from $89.00 to $80.00 and set a "neutral" rating on the stock in a research report on Friday, January 16th. Wells Fargo & Company lifted their price objective on shares of American International Group from $85.00 to $87.00 and gave the company an "equal weight" rating in a research note on Friday, February 13th. Keefe, Bruyette & Woods increased their price objective on shares of American International Group from $96.00 to $97.00 and gave the stock an "outperform" rating in a research note on Thursday, February 12th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of American International Group in a research report on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and thirteen have given a Hold rating to the company. According to MarketBeat.com, American International Group presently has a consensus rating of "Hold" and a consensus target price of $87.95.

American International Group Stock Performance

Shares of American International Group stock opened at $79.60 on Thursday. The firm has a market capitalization of $42.71 billion, a P/E ratio of 14.69, a PEG ratio of 0.61 and a beta of 0.58. American International Group has a 52 week low of $71.25 and a 52 week high of $88.07. The company has a quick ratio of 0.61, a current ratio of 0.61 and a debt-to-equity ratio of 0.22. The company has a 50 day moving average price of $77.82 and a 200 day moving average price of $78.95.

American International Group (NYSE:AIG - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The insurance provider reported $1.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.90 by $0.06. The business had revenue of $6.55 billion during the quarter, compared to analysts' expectations of $6.99 billion. American International Group had a net margin of 11.56% and a return on equity of 9.79%. During the same quarter last year, the company posted $1.30 earnings per share. Sell-side analysts expect that American International Group will post 6.24 EPS for the current year.

Institutional Investors Weigh In On American International Group

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of American International Group by 11.6% during the third quarter. Vanguard Group Inc. now owns 68,482,752 shares of the insurance provider's stock worth $5,378,635,000 after purchasing an additional 7,117,583 shares in the last quarter. Capital Research Global Investors lifted its stake in shares of American International Group by 79.6% in the third quarter. Capital Research Global Investors now owns 28,534,448 shares of the insurance provider's stock worth $2,241,091,000 after buying an additional 12,645,616 shares in the last quarter. Wellington Management Group LLP boosted its position in American International Group by 7.9% during the third quarter. Wellington Management Group LLP now owns 26,046,055 shares of the insurance provider's stock worth $2,045,657,000 after acquiring an additional 1,899,203 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in American International Group by 39.8% during 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 acquiring an additional 4,661,246 shares during the last quarter. Finally, Franklin Resources Inc. grew its stake in American International Group by 36.9% during the 4th 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 in the last quarter. 90.60% of the stock is currently owned by hedge funds and other institutional investors.

American International Group Company Profile

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.

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