Keefe, Bruyette & Woods Issues Pessimistic Forecast for American International Group (NYSE:AIG) Stock Price

Key Points

• Keefe, Bruyette & Woods cut AIG’s price target from $96 to $90 while maintaining an “outperform” rating, implying 16.9% upside from the previous close.
• Analyst sentiment is mixed: AIG has an overall “Hold” consensus rating and an average price target of $87.79, with eight Buy ratings and ten Holds.
• AIG opened at $76.99, near its 50-day and 200-day moving averages. In its latest quarter, the insurer beat earnings expectations with EPS of $2.00 versus a $1.92 consensus, though revenue fell short of estimates.

American International Group (NYSE:AIG - Get Free Report) had its price target dropped by equities research analysts at Keefe, Bruyette & Woods from $96.00 to $90.00 in a research report issued on Monday, Benzinga reports. The brokerage presently has an "outperform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price target indicates a potential upside of 16.90% from the stock's previous close.

Other analysts have also issued reports about the stock. Wells Fargo & Company reduced their price objective on shares of American International Group from $89.00 to $85.00 and set an "equal weight" rating for the company in a research note on Monday, August 10th. Mizuho dropped their target price on shares of American International Group from $85.00 to $83.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 7th. Royal Bank Of Canada increased their price target on shares of American International Group from $85.00 to $87.00 and gave the company a "sector perform" rating in a report on Monday, August 10th. UBS Group increased their price target on shares of American International Group from $98.00 to $100.00 and gave the company a "buy" rating in a report on Tuesday, October 6th. Finally, Morgan Stanley reduced their price target on shares of American International Group from $81.00 to $80.00 and set an "equal weight" rating for the company in a research report on Tuesday, October 6th. Eight investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, American International Group presently has an average rating of "Hold" and a consensus target price of $87.79.

American International Group Trading Down 0.1%

NYSE AIG opened at $76.99 on Monday. American International Group has a 12 month low of $71.25 and a 12 month high of $87.29. The stock has a market cap of $40.26 billion, a P/E ratio of 14.07, a P/E/G ratio of 0.82 and a beta of 0.52. The stock's fifty day moving average price is $76.17 and its 200-day moving average price is $76.47. The company has a current ratio of 0.61, a quick ratio of 0.61 and a debt-to-equity ratio of 0.22.

American International Group (NYSE:AIG - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The insurance provider reported $2.00 earnings per share for the quarter, beating the consensus estimate of $1.92 by $0.08. The firm had revenue of $7.08 billion during the quarter, compared to the consensus estimate of $7.25 billion. American International Group had a return on equity of 11.05% and a net margin of 11.13%. During the same period last year, the company earned $1.81 earnings per share. As a group, equities analysts forecast that American International Group will post 8.06 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Peter Zaffino sold 36,829 shares of the company's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $76.14, for a total transaction of $2,804,160.06. Following the completion of the sale, the insider owned 556,004 shares in the company, valued at approximately $42,334,144.56. This represents a 6.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of AIG. Wellington Management Group LLP raised its stake in American International Group by 6.9% during the 2nd quarter. Wellington Management Group LLP now owns 30,331,704 shares of the insurance provider's stock worth $2,260,622,000 after acquiring an additional 1,961,270 shares during the period. State Street Corp lifted its holdings in American International Group by 0.8% during the second quarter. State Street Corp now owns 25,115,416 shares of the insurance provider's stock valued at $1,871,852,000 after purchasing an additional 196,969 shares in the last quarter. Bank of New York Mellon Corp boosted its position in shares of American International Group by 6.1% in the first quarter. Bank of New York Mellon Corp now owns 8,237,375 shares of the insurance provider's stock worth $619,862,000 after purchasing an additional 474,035 shares during the period. Diamond Hill Capital Management LLC Investment Advisor bought a new position in shares of American International Group in the second quarter worth approximately $464,539,000. Finally, Dimensional Fund Advisors LP increased its stake in shares of American International Group by 5.2% in the first quarter. Dimensional Fund Advisors LP now owns 6,142,278 shares of the insurance provider's stock worth $462,147,000 after purchasing an additional 303,201 shares in 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 NYSE: AIG is a global insurance organization whose principal operating business is general insurance. Through its property and casualty operations, AIG provides commercial and personal insurance products, including coverage for businesses, multinational companies, individuals, and specialty risks. Its offerings include property, casualty, liability, marine, aviation, cyber, accident, and travel insurance, along with other risk-management solutions.

AIG serves customers through a network spanning approximately 190 countries and jurisdictions.

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