Rakuten Investment Management Inc. Makes New Investment in American International Group, Inc. $AIG

Key Points

• Rakuten Investment Management initiated a sizable AIG position, buying 94,329 shares in the third quarter, valued at about $7.1 million. Institutional investors collectively own 90.6% of AIG.
• AIG reported quarterly EPS of $2.06, topping the $1.88 consensus, with premium growth and investment income contributing; however, catastrophe losses weighed on results, and General Insurance underwriting income fell 29%.
• AIG declared a quarterly dividend of $0.50 per share, equal to a 2.5% yield at the cited share price. Analysts’ overall rating was “Hold,” with an average price target of $87.79.

Rakuten Investment Management Inc. purchased a new position in American International Group, Inc. (NYSE:AIG - Free Report) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 94,329 shares of the insurance provider's stock, valued at approximately $7,100,000.

Several other hedge funds have also bought and sold shares of AIG. First Bancorp Inc ME purchased a new position in shares of American International Group during the second quarter valued at about $30,000. Fiduciary Financial Advisors purchased a new stake in shares of American International Group in the second quarter worth about $34,000. Center for Financial Planning Inc. lifted its position in shares of American International Group by 52.0% in the third quarter. Center for Financial Planning Inc. now owns 456 shares of the insurance provider's stock worth $34,000 after buying an additional 156 shares in the last quarter. Elevation Wealth Partners LLC lifted its position in shares of American International Group by 71.6% in the third quarter. Elevation Wealth Partners LLC now owns 556 shares of the insurance provider's stock worth $41,000 after buying an additional 232 shares in the last quarter. Finally, Cedar Mountain Advisors LLC bought a new position in American International Group during the first quarter valued at approximately $50,000. Hedge funds and other institutional investors own 90.60% of the company's stock.

American International Group Trading Down 1.0%

Shares of NYSE AIG opened at $80.86 on Friday. The business's 50 day moving average is $77.44 and its two-hundred day moving average is $76.91. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.61 and a quick ratio of 0.61. 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 capitalization of $42.28 billion, a P/E ratio of 13.17, a PEG ratio of 0.85 and a beta of 0.48.

American International Group (NYSE:AIG - Get Free Report) last posted its quarterly earnings data on Tuesday, November 3rd. The insurance provider reported $2.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.88 by $0.18. The business had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.42 billion. American International Group had a return on equity of 10.73% and a net margin of 11.86%. During the same period last year, the company earned $2.20 EPS. As a group, research analysts expect that American International Group, Inc. will post 8.10 EPS for the current year.

American International Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 30th. Stockholders of record on Wednesday, December 16th will be given a dividend of $0.50 per share. The ex-dividend date of this dividend is Wednesday, December 16th. This represents a $2.00 annualized dividend and a dividend yield of 2.5%. American International Group's payout ratio is currently 32.57%.

Insiders Place Their Bets

In related news, insider Peter Zaffino sold 36,829 shares of the stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $76.14, for a total transaction of $2,804,160.06. Following the sale, the insider owned 556,004 shares in the company, valued at approximately $42,334,144.56. This represents a 6.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.60% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on AIG shares. Mizuho cut their price target on American International Group from $85.00 to $83.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Piper Sandler upped their price objective on American International Group from $80.00 to $84.00 and gave the stock a "neutral" rating in a report on Monday, August 10th. Morgan Stanley lowered their target price on American International Group from $81.00 to $80.00 and set an "equal weight" rating for the company in a research report on Tuesday, October 6th. Wells Fargo & Company raised their target price on shares of American International Group from $83.00 to $85.00 and gave the company an "equal weight" rating in a report on Thursday. Finally, Cantor Fitzgerald reduced their price target on shares of American International Group from $92.00 to $90.00 and set an "overweight" rating on the stock in a research report on Monday, August 17th. Eight equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $87.79.

Key Stories Impacting American International Group

Here are the key news stories impacting American International Group this week:

• Positive Sentiment: AIG’s third-quarter earnings beat estimates by 11.4%, with premium growth and higher investment income helping offset elevated catastrophe losses. The company reported EPS of $2.06 versus the $1.88 consensus. AIG Q3 Earnings Beat Estimates on Strong Premium Growth
• Positive Sentiment: The insurer declared a quarterly dividend of $0.50 per share, equivalent to $2.00 annually and a roughly 2.5% yield at the cited share price, supporting its appeal to income-focused investors.
• Neutral Sentiment: Wells Fargo raised its price target from $83 to $85 but kept an “equal weight” rating, indicating modest upside in its view without a stronger bullish endorsement. Wells Fargo recommendations
• Negative Sentiment: General Insurance underwriting income fell 29% in the quarter, with storms and other catastrophe losses weighing on results. That weakness could offset the earnings beat and raise concerns about underwriting profitability. AIG’s General Insurance Q3 Underwriting Income Down 29%

American International Group Profile

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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