Bank of America Corp DE Reduces Stake in American International Group, Inc. $AIG

Key Points

• Bank of America cut its AIG stake by 25.6% in the first quarter, selling 1.53 million shares and retaining 4.44 million shares valued at approximately $333.9 million. Institutional investors collectively own 90.6% of AIG.
• AIG reported quarterly EPS of $2.11, beating estimates of $1.89, although revenue of $6.65 billion fell short of the $7.03 billion forecast. Analysts project full-year EPS of $7.97.
• Analyst sentiment remains mixed, with seven Buy ratings and 12 Holds; the stock has an average rating of Hold and an average price target of $88.22, compared with its reported price of $78.59.

Bank of America Corp DE reduced its stake in shares of American International Group, Inc. (NYSE:AIG - Free Report) by 25.6% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 4,436,611 shares of the insurance provider's stock after selling 1,530,395 shares during the quarter. Bank of America Corp DE owned about 0.84% of American International Group worth $333,855,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in AIG. Modus Advisors LLC purchased a new stake in American International Group during the 4th quarter valued at $27,000. Navalign LLC bought a new stake in American International Group in the fourth quarter worth $29,000. Mcguire Capital Advisors Inc. purchased a new position in American International Group during the fourth quarter worth $29,000. SHP Wealth Management purchased a new position in American International Group during the fourth quarter worth $34,000. Finally, CENTRAL TRUST Co increased its position in American International Group by 48.7% during the first quarter. CENTRAL TRUST Co now owns 461 shares of the insurance provider's stock valued at $35,000 after acquiring an additional 151 shares during the last quarter. 90.60% of the stock is currently owned by hedge funds and other institutional investors.

American International Group Stock Performance

Shares of NYSE:AIG opened at $78.59 on Monday. The firm's 50 day simple moving average is $76.90 and its 200-day simple moving average is $76.54. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.65 and a current ratio of 0.65. American International Group, Inc. has a one year low of $71.25 and a one year high of $87.29. The firm has a market cap of $41.67 billion, a PE ratio of 13.86, a price-to-earnings-growth ratio of 0.72 and a beta of 0.52.

American International Group (NYSE:AIG - Get Free Report) last announced its quarterly earnings results on Friday, May 1st. The insurance provider reported $2.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.89 by $0.22. The firm had revenue of $6.65 billion during the quarter, compared to analyst estimates of $7.03 billion. American International Group had a return on equity of 10.93% and a net margin of 11.86%.During the same quarter in the previous year, the business earned $1.17 earnings per share. As a group, equities analysts predict that American International Group, Inc. will post 7.97 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Morgan Stanley reduced their target price on shares of American International Group from $83.00 to $82.00 and set an "equal weight" rating on the stock in a research note on Monday, April 6th. Mizuho lifted their price target on shares of American International Group from $86.00 to $89.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. UBS Group upped their price objective on American International Group from $94.00 to $98.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Bank of America reduced their target price on American International Group from $80.00 to $79.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 14th. Finally, Cantor Fitzgerald upgraded American International Group from a "neutral" rating to an "overweight" rating and lifted their target price for the stock from $85.00 to $92.00 in a research report on Thursday, July 9th. Seven analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $88.22.

About American International Group

American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk.

The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time.

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