American International Group (NYSE:AIG) Rating Increased to Buy at Wall Street Zen

Key Points

• American International Group (AIG) has been upgraded to a "buy" rating by Wall Street Zen, moving from a previous "hold" rating.
• Research firms have shown increasing confidence in AIG, with multiple upgrades, including William Blair's "strong-buy" rating and a price target increase by Morgan Stanley from $81 to $85.
• AIG reported earnings per share of $1.81 in its latest quarterly results, beating estimates and showing growth from $1.16 EPS in the same quarter last year.

Wall Street Zen upgraded shares of American International Group (NYSE:AIG - Free Report) from a hold rating to a buy rating in a research report released on Saturday morning.

A number of other analysts have also recently commented on the company. Keefe, Bruyette & Woods lowered their price target on American International Group from $97.00 to $91.00 and set an "outperform" rating for the company in a research report on Tuesday, August 12th. William Blair raised American International Group to a "strong-buy" rating in a research report on Friday, August 1st. Citigroup began coverage on American International Group in a research report on Wednesday, August 13th. They set a "neutral" rating and a $85.00 price target for the company. Barclays lifted their price target on American International Group from $92.00 to $93.00 and gave the stock an "overweight" rating in a research report on Friday, May 2nd. Finally, Wells Fargo & Company lifted their price target on American International Group from $81.00 to $82.00 and gave the stock an "equal weight" rating in a research report on Tuesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, American International Group presently has a consensus rating of "Moderate Buy" and an average target price of $88.27.

American International Group Stock Up 0.3%

Shares of American International Group stock traded up $0.27 during trading on Friday, reaching $81.61. The company's stock had a trading volume of 113,233 shares, compared to its average volume of 4,476,206. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.22. The company has a market cap of $45.21 billion, a price-to-earnings ratio of 15.47, a P/E/G ratio of 0.87 and a beta of 0.70. American International Group has a 1-year low of $69.24 and a 1-year high of $88.07. The company has a 50-day simple moving average of $81.03 and a two-hundred day simple moving average of $81.96.

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

American International Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th will be paid a dividend of $0.45 per share. The ex-dividend date is Tuesday, September 16th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.2%. American International Group's dividend payout ratio (DPR) is presently 34.09%.

Hedge Funds Weigh In On American International Group

Institutional investors have recently modified their holdings of the stock. Sachetta LLC raised its stake in shares of American International Group by 194.5% during the 1st quarter. Sachetta LLC now owns 377 shares of the insurance provider's stock valued at $33,000 after buying an additional 249 shares during the last quarter. GFG Capital LLC acquired a new position in American International Group in the 2nd quarter worth about $33,000. Ameriflex Group Inc. acquired a new position in American International Group in the 4th quarter worth about $29,000. Twin Peaks Wealth Advisors LLC acquired a new position in American International Group in the 2nd quarter worth about $32,000. Finally, Barrett & Company Inc. acquired a new position in American International Group in the 2nd quarter worth about $35,000. Hedge funds and other institutional investors own 90.60% of the company's stock.

About American International Group

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.