University of Texas Texas AM Investment Management Co. Purchases 61,762 Shares of American International Group, Inc. $AIG

Key Points

• University of Texas Texas AM Investment Management Co. sharply increased its stake in American International Group, buying 61,762 shares in the fourth quarter and lifting its position by 679.6% to 70,850 shares worth about $6.1 million.
• AIG reported better-than-expected first-quarter earnings of $2.11 per share, topping estimates by $0.22, though revenue of $6.65 billion came in below expectations.
• The company raised its quarterly dividend to $0.50 per share from $0.45, implying a $2.00 annual payout and a 2.7% yield.

University of Texas Texas AM Investment Management Co. boosted its position in shares of American International Group, Inc. (NYSE:AIG - Free Report) by 679.6% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 70,850 shares of the insurance provider's stock after acquiring an additional 61,762 shares during the quarter. American International Group accounts for approximately 0.9% of University of Texas Texas AM Investment Management Co.'s investment portfolio, making the stock its 15th biggest holding. University of Texas Texas AM Investment Management Co.'s holdings in American International Group were worth $6,061,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in American International Group by 11.6% during the third quarter. Vanguard Group Inc. now owns 68,482,752 shares of the insurance provider's stock worth $5,378,635,000 after acquiring an additional 7,117,583 shares in the last quarter. Capital Research Global Investors raised its position in American International Group by 79.6% during the third quarter. Capital Research Global Investors now owns 28,534,448 shares of the insurance provider's stock worth $2,241,091,000 after acquiring an additional 12,645,616 shares in the last quarter. Wellington Management Group LLP raised its position in American International Group by 7.9% during the third quarter. Wellington Management Group LLP now owns 26,046,055 shares of the insurance provider's stock worth $2,045,657,000 after acquiring an additional 1,899,203 shares in the last quarter. Franklin Resources Inc. raised its position in 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 acquiring an additional 4,210,363 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC raised its position in American International Group by 22.0% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 10,256,290 shares of the insurance provider's stock worth $805,529,000 after acquiring an additional 1,846,979 shares in the last quarter. 90.60% of the stock is owned by institutional investors.

American International Group Stock Performance

NYSE AIG opened at $74.82 on Tuesday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.65 and a current ratio of 0.65. The firm has a 50-day moving average of $76.06 and a 200-day moving average of $77.40. American International Group, Inc. has a 52-week low of $71.25 and a 52-week high of $87.29. The stock has a market cap of $39.67 billion, a PE ratio of 13.20, a P/E/G ratio of 0.69 and a beta of 0.52.

American International Group (NYSE:AIG - Get Free Report) last released its quarterly earnings results on Friday, May 1st. The insurance provider reported $2.11 EPS for the quarter, beating the consensus estimate of $1.89 by $0.22. American International Group had a net margin of 11.86% and a return on equity of 10.93%. The business had revenue of $6.65 billion for the quarter, compared to the consensus estimate of $7.03 billion. During the same period in the prior year, the company posted $1.17 earnings per share. On average, sell-side analysts anticipate that American International Group, Inc. will post 7.99 EPS for the current year.

American International Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 29th. Investors of record on Monday, June 15th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 2.7%. This is a boost from American International Group's previous quarterly dividend of $0.45. The ex-dividend date is Monday, June 15th. American International Group's dividend payout ratio is currently 31.75%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on AIG. Mizuho upped their price target on shares of American International Group from $84.00 to $86.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Bank of America dropped their price objective on shares of American International Group from $80.00 to $79.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 14th. Barclays raised their target price on shares of American International Group from $78.00 to $80.00 and gave the stock an "equal weight" rating in a research note on Friday, May 1st. Citigroup raised their target price on shares of American International Group from $85.00 to $88.00 and gave the stock a "neutral" rating in a research note on Monday, May 4th. Finally, UBS Group raised their target price on shares of American International Group from $92.00 to $94.00 and gave the stock a "buy" rating in a research note on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, American International Group currently has a consensus rating of "Hold" and an average price target of $87.78.

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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