Capital Research Global Investors Boosts Stake in American International Group, Inc. $AIG

Key Points

• Capital Research Global Investors boosted its stake in American International Group by 79.6%, buying 12,645,616 shares to hold 28,534,448 shares (about 5.29% of AIG) valued at roughly $2.24 billion at quarter-end.
• AIG beat Q4 earnings estimates with EPS $1.96 (vs. $1.90 expected) but missed revenue forecasts, and announced a quarterly dividend of $0.45 ($1.80 annualized, ~2.3% yield; ex-dividend March 16).
• Institutional ownership is high at 90.6%—notably, Vanguard now owns 68,482,752 shares after an 11.6% increase—and analysts have an average rating of "Hold" with a consensus target price of $87.95.

Capital Research Global Investors grew its holdings in shares of American International Group, Inc. (NYSE:AIG - Free Report) by 79.6% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 28,534,448 shares of the insurance provider's stock after purchasing an additional 12,645,616 shares during the quarter. Capital Research Global Investors owned approximately 5.29% of American International Group worth $2,241,091,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of American International Group in the 2nd quarter worth about $787,724,000. Vanguard Group Inc. boosted its stake in shares of American International Group by 11.6% in the third quarter. Vanguard Group Inc. now owns 68,482,752 shares of the insurance provider's stock valued at $5,378,635,000 after purchasing an additional 7,117,583 shares during the period. Viking Global Investors LP purchased a new stake in American International Group during the 2nd quarter worth $155,413,000. Jupiter Asset Management Ltd. lifted its stake in shares of American International Group by 2,157.0% in the third quarter. Jupiter Asset Management Ltd. now owns 1,615,618 shares of the insurance provider's stock worth $126,891,000 after acquiring an additional 1,544,037 shares in the last quarter. Finally, Munich Reinsurance Co Stock Corp in Munich purchased a new position in shares of American International Group during the 3rd quarter valued at approximately $77,054,000. Hedge funds and other institutional investors own 90.60% of the company's stock.

American International Group Stock Down 1.4%

NYSE AIG opened at $77.62 on Tuesday. The firm has a 50-day simple moving average of $77.36 and a 200 day simple moving average of $78.87. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.61 and a current ratio of 0.61. The stock has a market cap of $41.65 billion, a PE ratio of 14.32, a PEG ratio of 0.61 and a beta of 0.58. American International Group, Inc. has a twelve month low of $71.25 and a twelve month high of $88.07.

American International Group (NYSE:AIG - Get Free Report) last released its quarterly earnings data on Tuesday, February 10th. The insurance provider reported $1.96 earnings per share for the quarter, beating analysts' consensus estimates of $1.90 by $0.06. The company had revenue of $6.55 billion for the quarter, compared to the consensus estimate of $6.99 billion. American International Group had a return on equity of 9.79% and a net margin of 11.56%.During the same period in the previous year, the business earned $1.30 earnings per share. On average, research analysts forecast that American International Group, Inc. will post 6.24 EPS for the current year.

American International Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 30th. Shareholders of record on Monday, March 16th will be issued a $0.45 dividend. The ex-dividend date is Monday, March 16th. This represents a $1.80 annualized dividend and a yield of 2.3%. American International Group's dividend payout ratio (DPR) is 33.21%.

Wall Street Analyst Weigh In

AIG has been the subject of several analyst reports. Mizuho boosted their price objective on American International Group from $83.00 to $86.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 17th. Barclays lowered their price objective on shares of American International Group from $81.00 to $79.00 and set an "equal weight" rating on the stock in a research note on Wednesday, February 11th. UBS Group cut their target price on American International Group from $94.00 to $92.00 and set a "buy" rating for the company in a research report on Tuesday, February 17th. Keefe, Bruyette & Woods boosted their price objective on American International Group from $96.00 to $97.00 and gave the stock an "outperform" rating in a research note on Thursday, February 12th. Finally, Royal Bank Of Canada initiated coverage on shares of American International Group in a report on Tuesday, November 25th. They issued a "sector perform" rating and a $85.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and thirteen have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $87.95.

American International Group Company 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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