American International Group, Inc. (NYSE:AIG) Stock Now Rated "Hold" by Wall Street Analysts

Key Points

• Wall Street’s consensus rating on AIG is “Hold”: 11 of 19 analysts recommend holding the stock, while eight rate it a buy. The average 12-month price target is $88.16, above the reported opening price of $72.69.
• AIG’s latest quarterly results exceeded expectations on earnings, reporting $2.00 in EPS versus the $1.92 estimate, though revenue of $7.08 billion fell short of the $7.25 billion forecast.
• The company declared a quarterly dividend of $0.50 per share, or $2.00 annualized, representing a 2.8% yield and a 36.56% payout ratio. Institutional investors own approximately 90.6% of AIG’s shares.

Shares of American International Group, Inc. (NYSE:AIG - Get Free Report) have been given a consensus rating of "Hold" by the nineteen ratings firms that are covering the company, MarketBeat.com reports. Eleven research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $88.16.

Several research analysts have recently commented on the company. Piper Sandler boosted their target price on American International Group from $80.00 to $84.00 and gave the stock a "neutral" rating in a report on Monday, August 10th. Weiss Ratings raised American International Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, July 2nd. Cantor Fitzgerald cut their price objective on 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. Morgan Stanley cut their price objective on American International Group from $82.00 to $81.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 12th. Finally, UBS Group boosted their price objective on American International Group from $94.00 to $98.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th.

American International Group Trading Down 2.0%

Shares of American International Group stock opened at $72.69 on Tuesday. American International Group has a 12-month low of $71.25 and a 12-month high of $87.29. The stock has a market capitalization of $38.01 billion, a P/E ratio of 13.29, a price-to-earnings-growth ratio of 0.83 and a beta of 0.50. The company has a 50-day simple moving average of $76.84 and a 200 day simple moving average of $76.48. The company has a quick ratio of 0.61, a current ratio of 0.61 and a debt-to-equity ratio of 0.22.

American International Group (NYSE:AIG - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The insurance provider reported $2.00 EPS for the quarter, beating analysts' consensus estimates of $1.92 by $0.08. The firm had revenue of $7.08 billion for the quarter, compared to analyst estimates of $7.25 billion. American International Group had a net margin of 11.13% and a return on equity of 11.05%. During the same period in the previous year, the business earned $1.81 earnings per share. Research analysts expect that American International Group will post 8.02 earnings per share for the current fiscal year.

American International Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Wednesday, September 16th. American International Group's payout ratio is currently 36.56%.

Insider Transactions at American International Group

In related news, insider Peter Zaffino sold 200,000 shares of the company's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $76.47, for a total transaction of $15,294,000.00. Following the transaction, the insider owned 592,833 shares in the company, valued at $45,333,939.51. This represents a 25.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On American International Group

Institutional investors have recently modified their holdings of the stock. Modus Advisors LLC acquired a new stake in shares of American International Group in the fourth quarter valued at approximately $27,000. First Bancorp Inc ME acquired a new position in American International Group during the 2nd quarter worth $30,000. SHP Wealth Management acquired a new position in American International Group during the 4th quarter worth $34,000. Fiduciary Financial Advisors bought a new position in American International Group in the 2nd quarter valued at $34,000. Finally, CENTRAL TRUST Co boosted its position in American International Group by 48.7% in the 1st quarter. CENTRAL TRUST Co now owns 461 shares of the insurance provider's stock valued at $35,000 after buying an additional 151 shares during the last quarter. 90.60% of the stock is owned by institutional investors.

American International Group Company Profile

American International Group, Inc NYSE: AIG is a global insurance organization that provides commercial and personal insurance products and services. Through its General Insurance business, AIG offers property, casualty, liability, workers' compensation, accident, specialty, and other insurance solutions to businesses, institutions, and individuals.

AIG serves multinational corporations, small and midsize businesses, public-sector organizations, and individual policyholders through a network spanning numerous countries and jurisdictions.

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