American International Group (NYSE:AIG) Shares Gap Down - Time to Sell?

Key Points

• American International Group (AIG) experienced a significant gap down in share price, opening at $78.31 after a previous close of $81.26, with recent trading around $79.31 and volumes of over 1.4 million shares.
• Several analysts have upgraded ratings for AIG, with Citigroup initiating coverage at a "neutral" rating and UBS raising their target price to $94.00, while the consensus rating remains at a "Moderate Buy" with a target of $89.81.
• AIG recently announced a quarterly dividend of $0.45 per share, reflecting an annualized dividend yield of 2.3%, and the company's dividend payout ratio stands at 34.09%.

American International Group, Inc. (NYSE:AIG - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $81.26, but opened at $78.31. American International Group shares last traded at $79.31, with a volume of 1,415,610 shares traded.

Analyst Ratings Changes

AIG has been the subject of several recent research reports. Citigroup initiated coverage on shares of American International Group in a research report on Wednesday, August 13th. They issued a "neutral" rating and a $85.00 price objective for the company. Wall Street Zen upgraded American International Group from a "hold" rating to a "buy" rating in a research note on Friday, October 3rd. UBS Group increased their target price on American International Group from $90.00 to $94.00 and gave the stock a "buy" rating in a research report on Wednesday, October 8th. Cantor Fitzgerald raised American International Group to a "hold" rating in a report on Tuesday, August 12th. Finally, Bank of America lifted their target price on American International Group from $88.00 to $94.00 and gave the stock a "neutral" rating in a report on Monday. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $89.81.

American International Group Trading Down 3.1%

The stock has a 50 day moving average of $80.01 and a 200 day moving average of $81.64. The firm has a market cap of $43.61 billion, a P/E ratio of 14.92, a PEG ratio of 0.82 and a beta of 0.68. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.63 and a quick ratio of 0.63.

American International Group (NYSE:AIG - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The insurance provider reported $1.81 EPS for the quarter, topping the consensus estimate of $1.60 by $0.21. The business had revenue of $6.77 billion during the quarter, compared to analyst estimates of $6.81 billion. American International Group had a net margin of 11.51% and a return on equity of 7.88%. During the same period last year, the business posted $1.16 earnings per share. As a group, equities research analysts predict that American International Group, Inc. will post 6.24 EPS for the current year.

American International Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th were given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Tuesday, September 16th. American International Group's dividend payout ratio is currently 34.09%.

Institutional Trading of American International Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. GQG Partners LLC grew its stake in American International Group by 33,315.0% in the 1st quarter. GQG Partners LLC now owns 18,909,539 shares of the insurance provider's stock worth $1,643,995,000 after acquiring an additional 18,852,949 shares in the last quarter. Franklin Resources Inc. lifted its position in American International Group by 6.1% during the second quarter. Franklin Resources Inc. now owns 12,536,144 shares of the insurance provider's stock valued at $1,072,969,000 after acquiring an additional 716,209 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in shares of American International Group by 20.4% in the first quarter. Bank of New York Mellon Corp now owns 11,212,788 shares of the insurance provider's stock worth $974,840,000 after buying an additional 1,901,998 shares during the last quarter. Norges Bank purchased a new position in shares of American International Group in the second quarter worth $787,724,000. Finally, Hotchkis & Wiley Capital Management LLC raised its holdings in shares of American International Group by 22.8% in the first quarter. Hotchkis & Wiley Capital Management LLC now owns 9,113,636 shares of the insurance provider's stock worth $792,340,000 after buying an additional 1,694,290 shares during the last quarter. 90.60% of the stock is owned by hedge funds and other institutional investors.

American International Group Company Profile

American International Group, Inc offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products; and professional liability insurance.

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