Wells Fargo & Company Forecasts Strong Price Appreciation for American International Group (NYSE:AIG) Stock

Key Points

• Wells Fargo raised AIG’s price target from $83 to $85 but maintained an “equal weight” rating, implying just 2.93% upside. Analysts overall rate the stock “Hold,” with an average target of $87.79.
• AIG beat quarterly earnings expectations, reporting EPS of $2.06 versus $1.88 expected and revenue of $7.44 billion, slightly above estimates.
• Results had a headwind: General Insurance underwriting income fell 29% amid elevated catastrophe losses, and EPS was below the $2.20 reported a year earlier. AIG declared a quarterly dividend of $0.50 per share.

American International Group (NYSE:AIG - Get Free Report) had its price target lifted by research analysts at Wells Fargo & Company from $83.00 to $85.00 in a research note issued to investors on Thursday, Benzinga reports. The firm currently has an "equal weight" rating on the insurance provider's stock. Wells Fargo & Company's price target suggests a potential upside of 2.93% from the stock's current price.

Several other equities analysts have also commented on the stock. Cantor Fitzgerald lowered their price target on shares of American International Group from $92.00 to $90.00 and set an "overweight" rating for the company in a research report on Monday, August 17th. Royal Bank Of Canada increased their price objective on American International Group from $85.00 to $87.00 and gave the stock a "sector perform" rating in a report on Monday, August 10th. Argus restated a "buy" rating and issued a $90.00 target price on shares of American International Group in a research report on Wednesday, September 2nd. JPMorgan Chase & Co. boosted their price target on American International Group from $86.00 to $90.00 and gave the stock a "neutral" rating in a research report on Monday, July 20th. Finally, Barclays boosted their price target on American International Group from $80.00 to $81.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Eight analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, American International Group currently has a consensus rating of "Hold" and an average price target of $87.79.

American International Group Stock Up 1.1%

NYSE:AIG opened at $82.58 on Thursday. The firm has a market capitalization of $43.18 billion, a PE ratio of 13.46, a price-to-earnings-growth ratio of 0.84 and a beta of 0.48. The stock has a 50 day moving average of $77.36 and a 200-day moving average of $76.87. American International Group has a 52 week low of $71.25 and a 52 week high of $87.29. 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 announced its quarterly earnings results on Tuesday, November 3rd. The insurance provider reported $2.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.88 by $0.18. The business had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.42 billion. American International Group had a return on equity of 10.73% and a net margin of 11.86%. During the same quarter last year, the business posted $2.20 EPS. Analysts predict that American International Group will post 8.07 EPS for the current year.

Insider Transactions at American International Group

In other American International Group news, insider Peter Zaffino sold 36,829 shares of the firm's stock in a transaction dated 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 directly owned 556,004 shares in the company, valued at approximately $42,334,144.56. This trade represents a 6.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.60% of the company's stock.

Hedge Funds Weigh In On American International Group

Large investors have recently made changes to their positions in the business. Lido Advisors LLC raised its stake in shares of American International Group by 30.3% in the third quarter. Lido Advisors LLC now owns 32,335 shares of the insurance provider's stock valued at $2,406,000 after acquiring an additional 7,524 shares during the last quarter. Keybank National Association OH grew its position in American International Group by 10.6% during the 3rd quarter. Keybank National Association OH now owns 12,247 shares of the insurance provider's stock worth $911,000 after acquiring an additional 1,174 shares during the last quarter. Gryphon Financial Partners LLC increased its holdings in American International Group by 14.7% during the 3rd quarter. Gryphon Financial Partners LLC now owns 3,277 shares of the insurance provider's stock valued at $244,000 after purchasing an additional 421 shares in the last quarter. Kestra Investment Management LLC bought a new position in American International Group in the 3rd quarter valued at $324,000. Finally, Fulcrum Asset Management LLP bought a new position in American International Group in the 3rd quarter valued at $1,463,000. Institutional investors and hedge funds own 90.60% of the company's stock.

More American International Group News

Here are the key news stories impacting American International Group this week:

• Positive Sentiment: AIG earned $2.06 per share, above analyst estimates of $1.88, while revenue of $7.44 billion slightly topped expectations. Broad-based premium growth and higher investment income helped drive the beat. AIG Q3 Earnings Beat Estimates on Strong Premium Growth
• Positive Sentiment: The company declared a quarterly dividend of $0.50 per share, signaling continued shareholder returns. AIG Reports Strong Third-Quarter Results and Shareholder Returns
• Negative Sentiment: General Insurance underwriting income fell 29%, with elevated catastrophe losses from storms eroding underwriting performance. Third-quarter EPS also declined from $2.20 a year earlier, despite beating estimates. AIG’s General Insurance Q3 Underwriting Income Down 29%

American International Group Company Profile

American International Group, Inc NYSE: AIG is a global insurance organization that provides property and casualty insurance products and related services to businesses, institutions, and individuals. Its offerings include commercial insurance, personal insurance, specialty coverage, accident and health products, and travel-related protection.

AIG serves customers through operations in the United States and international markets. Its commercial insurance business supports companies across industries with coverage such as property, casualty, liability, marine, and other specialty risks, while its personal insurance operations provide protection for individuals and families.

The company was founded in Shanghai in 1919 by Cornelius Vander Starr and is headquartered in New York City.

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