Insider Selling: American International Group (NYSE:AIG) Insider Sells 200,000 Shares of Stock

Key Points

• Insider sale: AIG insider Peter Zaffino sold 200,000 shares for approximately $15.3 million under a pre-arranged Rule 10b5-1 plan, reducing his direct stake by 25.23%. He also sold 36,829 additional shares the following day.
• Quarterly performance: AIG reported quarterly EPS of $2.00, exceeding the $1.92 analyst consensus, while revenue of $7.08 billion fell short of the $7.25 billion estimate.
• Stock and outlook: AIG traded near $76, and analysts maintained an average “Hold” rating with an average price target of $88.39. The company also declared a quarterly dividend of $0.50 per share, implying a 2.6% annualized yield.

American International Group, Inc. (NYSE:AIG - Get Free Report) insider Peter Zaffino sold 200,000 shares of the company's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $76.47, for a total transaction of $15,294,000.00. Following the sale, the insider directly owned 592,833 shares of the company's stock, valued at $45,333,939.51. The trade was a 25.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Peter Zaffino also recently made the following trade(s):

• On Thursday, August 13th, Peter Zaffino sold 36,829 shares of American International Group stock. The stock was sold at an average price of $76.14, for a total transaction of $2,804,160.06.

American International Group Price Performance

AIG traded down $0.09 on Thursday, reaching $76.05. 2,132,257 shares of the company's stock were exchanged, compared to its average volume of 3,466,259. American International Group, Inc. has a twelve month low of $71.25 and a twelve month high of $87.29. The stock has a market cap of $39.77 billion, a PE ratio of 13.90, a P/E/G ratio of 0.70 and a beta of 0.53. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.65 and a quick ratio of 0.65. The stock's fifty day moving average price is $77.55 and its 200-day moving average price is $76.90.

American International Group (NYSE:AIG - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The insurance provider reported $2.00 EPS for the quarter, beating analysts' consensus estimates of $1.92 by $0.08. American International Group had a net margin of 11.13% and a return on equity of 11.03%. The company had revenue of $7.08 billion during the quarter, compared to the consensus estimate of $7.25 billion. During the same quarter in the prior year, the firm earned $1.81 EPS. Sell-side analysts expect that American International Group, Inc. will post 8.01 EPS for the current year.

American International Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be given a dividend of $0.50 per share. The ex-dividend date is Wednesday, September 16th. This represents a $2.00 dividend on an annualized basis and a yield of 2.6%. American International Group's dividend payout ratio (DPR) is presently 36.56%.

Institutional Trading of American International Group

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Allstate Corp lifted its position in American International Group by 0.9% in the second quarter. Allstate Corp now owns 53,726 shares of the insurance provider's stock valued at $4,004,000 after buying an additional 468 shares during the last quarter. Cibc World Market Inc. increased its position in shares of American International Group by 1.5% during the second quarter. Cibc World Market Inc. now owns 29,343 shares of the insurance provider's stock valued at $2,187,000 after acquiring an additional 441 shares during the last quarter. OMERS ADMINISTRATION Corp increased its position in shares of American International Group by 13.2% during the second quarter. OMERS ADMINISTRATION Corp now owns 41,611 shares of the insurance provider's stock valued at $3,101,000 after acquiring an additional 4,845 shares during the last quarter. Meiji Yasuda Asset Management Co Ltd. raised its stake in shares of American International Group by 258.9% in the 2nd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 12,183 shares of the insurance provider's stock valued at $908,000 after acquiring an additional 8,788 shares during the period. Finally, Bank of Nova Scotia lifted its holdings in shares of American International Group by 131.5% in the 2nd quarter. Bank of Nova Scotia now owns 1,175,453 shares of the insurance provider's stock worth $87,607,000 after acquiring an additional 667,791 shares during the last quarter. 90.60% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages have recently weighed in on AIG. HSBC lowered their price target on shares of American International Group from $94.00 to $88.00 and set a "buy" rating on the stock in a research report on Monday, July 6th. Citigroup lifted 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. Weiss Ratings raised shares of American International Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 2nd. Morgan Stanley cut their price target on shares of American International Group from $82.00 to $81.00 and set an "equal weight" rating for the company in a report on Wednesday. Finally, Keefe, Bruyette & Woods lifted their price target on shares of American International Group from $95.00 to $96.00 and gave the company an "outperform" rating in a research report on Tuesday. Seven equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, American International Group currently has an average rating of "Hold" and an average target price of $88.39.

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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