American International Group (NYSE:AIG) Releases Quarterly Earnings Results, Beats Expectations By $0.20 EPS

Key Points

• AIG reported quarterly EPS of $2.11, beating consensus by $0.20 (consensus $1.91) and up from $1.17 a year earlier, with a return on equity of 9.79% and net margin of 11.56%.
• Shares rose about 1.4% to $74.82 on heavy volume, and the company paid a quarterly dividend of $0.45 (annualized $1.80) for a 2.4% yield with a 33.2% payout ratio.
• Major institutions increased stakes (Price T. Rowe added ~4.66M shares) leaving roughly 90.6% institutional ownership, while analyst sentiment is mixed with a consensus "Hold" and a $86.76 price target amid several recent downgrades.

American International Group (NYSE:AIG - Get Free Report) issued its earnings results on Thursday. The insurance provider reported $2.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.91 by $0.20, Zacks reports. American International Group had a return on equity of 9.79% and a net margin of 11.56%.During the same period in the previous year, the business posted $1.17 EPS.

American International Group Stock Up 1.4%

Shares of AIG traded up $1.03 during trading hours on Thursday, reaching $74.82. The company's stock had a trading volume of 10,766,225 shares, compared to its average volume of 3,720,807. The company has a 50 day moving average of $76.85 and a two-hundred day moving average of $77.85. 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 firm has a market cap of $40.17 billion, a price-to-earnings ratio of 13.80, a P/E/G ratio of 0.56 and a beta of 0.59. American International Group has a 1-year low of $71.25 and a 1-year high of $87.46.

American International Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Monday, March 16th were paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Monday, March 16th. American International Group's payout ratio is 33.21%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AIG. Price T Rowe Associates Inc. MD lifted its position in American International Group by 39.8% in the 4th 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 in the last quarter. Hotchkis & Wiley Capital Management LLC grew its holdings in shares of American International Group by 22.0% during 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. Barrow Hanley Mewhinney & Strauss LLC increased its stake in shares of American International Group by 10.8% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,482,558 shares of the insurance provider's stock worth $640,133,000 after acquiring an additional 731,802 shares during the last quarter. Raymond James Financial Inc. raised its holdings in shares of American International Group by 4.4% during the second quarter. Raymond James Financial Inc. now owns 3,429,324 shares of the insurance provider's stock worth $293,516,000 after acquiring an additional 143,361 shares in the last quarter. Finally, Caisse de depot et placement du Quebec raised its holdings in shares of American International Group by 20.9% during the third quarter. Caisse de depot et placement du Quebec now owns 2,216,284 shares of the insurance provider's stock worth $174,067,000 after acquiring an additional 383,522 shares in the last quarter. 90.60% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

AIG has been the subject of a number of recent analyst reports. Barclays decreased their price target on American International Group from $79.00 to $78.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 7th. JPMorgan Chase & Co. reduced their price objective on shares of American International Group from $97.00 to $86.00 and set a "neutral" rating for the company in a research note on Monday, April 20th. Morgan Stanley decreased their target price on shares of American International Group from $83.00 to $82.00 and set an "equal weight" rating for the company in a report on Monday, April 6th. HSBC dropped their target price on shares of American International Group from $90.00 to $89.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. Finally, Piper Sandler reduced their price target on shares of American International Group from $95.00 to $88.00 and set an "overweight" rating for the company in a research report on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $86.76.

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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