American International Group (NYSE:AIG) Issues Quarterly Earnings Results

Key Points

• AIG reported quarterly earnings of $2.06 per share, beating the analyst consensus estimate of $1.88 by $0.18.
• AIG shares fell $1.75 to $80.65 in Tuesday midday trading, despite the earnings beat.
• Analysts had a consensus Hold rating and an average price target of $87.68; the company also paid a quarterly dividend of $0.50 per share.

American International Group (NYSE:AIG - Get Free Report) released its earnings results on Tuesday. The insurance provider reported $2.06 earnings per share for the quarter, beating analysts' consensus estimates of $1.88 by $0.18, Zacks reports. American International Group had a return on equity of 11.05% and a net margin of 11.13%.

American International Group Price Performance

American International Group stock traded down $1.75 during midday trading on Tuesday, reaching $80.65. The company's stock had a trading volume of 6,225,850 shares, compared to its average volume of 4,308,971. The company has a current ratio of 0.61, a quick ratio of 0.61 and a debt-to-equity ratio of 0.22. The stock has a market cap of $42.17 billion, a PE ratio of 14.74, a price-to-earnings-growth ratio of 0.84 and a beta of 0.52. American International Group has a 52 week low of $71.25 and a 52 week high of $87.29. The business has a 50-day moving average price of $77.19 and a 200-day moving average price of $76.80.

American International Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date was Wednesday, September 16th. American International Group's payout ratio is currently 36.56%.

Analyst Ratings Changes

A number of research analysts recently commented on AIG shares. JPMorgan Chase & Co. raised 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. HSBC cut their price objective on shares of American International Group from $94.00 to $88.00 and set a "buy" rating for the company in a research report on Monday, July 6th. Cantor Fitzgerald dropped their target price 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. Mizuho cut their price target on shares of American International Group from $85.00 to $83.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Finally, Royal Bank Of Canada increased their price target on shares of American International Group from $85.00 to $87.00 and gave the stock a "sector perform" rating in a research report on Monday, August 10th. Eight equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $87.68.

Insider Activity at American International Group

In other news, insider Peter Zaffino sold 200,000 shares of the stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $76.47, for a total value of $15,294,000.00. Following the completion of the transaction, the insider owned 592,833 shares of the company's stock, valued at approximately $45,333,939.51. This represents a 25.23% 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.

About American International Group

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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