Bank of New York Mellon Corp Buys New Stake in American International Group, Inc. $AIG

Key Points

• Bank of New York Mellon acquired 6.67 million AIG shares worth approximately $496.9 million, giving it a 1.26% stake. Institutional investors and hedge funds collectively own 90.6% of AIG.
• Analyst sentiment remains mixed, with seven Buy ratings and 12 Holds; the consensus rating is Hold with an average price target of $88.28.
• AIG beat quarterly earnings expectations, reporting $2.00 in EPS versus the $1.92 estimate, while declaring a $0.50 quarterly dividend, equivalent to a 2.6% yield.

Bank of New York Mellon Corp acquired a new stake in American International Group, Inc. (NYSE:AIG - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 6,666,982 shares of the insurance provider's stock, valued at approximately $496,890,000. Bank of New York Mellon Corp owned 1.26% of American International Group at the end of the most recent quarter.

Several other large investors have also made changes to their positions in AIG. Price T Rowe Associates Inc. MD increased its stake in shares of American International Group by 39.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,371,853 shares of the insurance provider's stock worth $1,400,613,000 after acquiring an additional 4,661,246 shares during the last quarter. Franklin Resources Inc. boosted its position in shares of American International Group by 36.9% during the fourth quarter. Franklin Resources Inc. now owns 15,618,321 shares of the insurance provider's stock worth $1,336,147,000 after buying an additional 4,210,363 shares during the period. Hotchkis & Wiley Capital Management LLC grew its stake in shares of American International Group by 22.0% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 10,256,290 shares of the insurance provider's stock valued at $805,529,000 after buying an additional 1,846,979 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its holdings in shares of American International Group by 10.8% in the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,482,558 shares of the insurance provider's stock valued at $640,133,000 after buying an additional 731,802 shares during the period. Finally, Norges Bank acquired a new position in American International Group during the 4th quarter worth about $636,782,000. 90.60% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. Royal Bank Of Canada boosted 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 note on Monday, August 10th. Weiss Ratings upgraded American International Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, July 2nd. JPMorgan Chase & Co. increased their price target on American International Group from $86.00 to $90.00 and gave the company a "neutral" rating in a research report on Monday, July 20th. Cantor Fitzgerald cut their target price on shares of American International Group from $92.00 to $90.00 and set an "overweight" rating on the stock in a research note on Monday, August 17th. Finally, Morgan Stanley reduced their price objective on shares of American International Group from $82.00 to $81.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 12th. Seven equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $88.28.

Insider Activity at American International Group

In other news, insider Peter Zaffino sold 36,829 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $76.14, for a total value of $2,804,160.06. Following the completion of the transaction, the insider owned 556,004 shares of the company's stock, valued at $42,334,144.56. The trade was a 6.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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.

American International Group Trading Up 0.7%

Shares of AIG opened at $76.30 on Friday. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.61 and a quick ratio of 0.61. The firm has a 50 day simple moving average of $77.69 and a 200-day simple moving average of $76.96. American International Group, Inc. has a 1-year low of $71.25 and a 1-year high of $87.29. The stock has a market cap of $39.90 billion, a price-to-earnings ratio of 13.95, a price-to-earnings-growth ratio of 0.69 and a beta of 0.53.

American International Group (NYSE:AIG - Get Free Report) last posted its earnings results on Thursday, August 6th. The insurance provider reported $2.00 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.92 by $0.08. American International Group had a return on equity of 11.05% and a net margin of 11.13%.The firm had revenue of $7.08 billion for the quarter, compared to analyst estimates of $7.25 billion. During the same quarter in the prior year, the company earned $1.81 EPS. Equities analysts forecast that American International Group, Inc. will post 8.01 EPS for the current fiscal year.

American International Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Wednesday, September 16th. American International Group's dividend payout ratio (DPR) is currently 36.56%.

American International Group Profile

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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