American International Group (NYSE:AIG) to Buyback $10.00 billion in Stock

American International Group (NYSE:AIG - Get Free Report) announced that its Board of Directors has approved a share repurchase program on Wednesday, May 1st, RTT News reports. The company plans to buyback $10.00 billion in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 19.4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

American International Group Price Performance

AIG traded up $0.52 on Wednesday, hitting $75.83. 4,548,443 shares of the company's stock were exchanged, compared to its average volume of 3,939,293. The firm has a 50-day moving average price of $75.10 and a 200-day moving average price of $69.30. The stock has a market cap of $51.64 billion, a price-to-earnings ratio of 15.20, a P/E/G ratio of 1.09 and a beta of 1.03. The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 0.44. American International Group has a fifty-two week low of $48.95 and a fifty-two week high of $78.95.

American International Group (NYSE:AIG - Get Free Report) last posted its quarterly earnings results on Wednesday, February 14th. The insurance provider reported $1.79 earnings per share for the quarter, topping analysts' consensus estimates of $1.59 by $0.20. American International Group had a net margin of 7.78% and a return on equity of 10.68%. The firm had revenue of $1.00 million for the quarter, compared to analyst estimates of $11.61 billion. During the same period in the previous year, the business posted $1.36 earnings per share. American International Group's quarterly revenue was up .0% on a year-over-year basis. As a group, equities analysts anticipate that American International Group will post 6.95 earnings per share for the current year.

American International Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 28th. Investors of record on Thursday, March 14th were issued a $0.36 dividend. The ex-dividend date of this dividend was Wednesday, March 13th. This represents a $1.44 annualized dividend and a dividend yield of 1.90%. American International Group's dividend payout ratio is presently 28.86%.

Wall Street Analyst Weigh In

AIG has been the subject of several analyst reports. JPMorgan Chase & Co. boosted their target price on shares of American International Group from $73.00 to $80.00 and gave the company a "neutral" rating in a research note on Monday, April 8th. UBS Group increased their target price on shares of American International Group from $83.00 to $84.00 and gave the stock a "buy" rating in a research note on Thursday, February 22nd. Royal Bank of Canada raised their target price on American International Group from $76.00 to $80.00 and gave the company an "outperform" rating in a research report on Thursday, February 15th. Piper Sandler upped their price target on American International Group from $87.00 to $89.00 and gave the stock an "overweight" rating in a report on Friday, April 19th. Finally, Wells Fargo & Company raised their price objective on American International Group from $74.00 to $80.00 and gave the company an "equal weight" rating in a report on Thursday, April 11th. Eight analysts have rated the stock with a hold rating and nine have issued a buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $80.38.

Insider Buying and Selling

In other American International Group news, CEO Peter Zaffino sold 333,000 shares of the business's stock in a transaction on Friday, March 15th. The stock was sold at an average price of $75.87, for a total transaction of $25,264,710.00. Following the transaction, the chief executive officer now owns 505,420 shares of the company's stock, valued at $38,346,215.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In related news, CEO Peter Zaffino sold 333,000 shares of the firm's stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $75.87, for a total transaction of $25,264,710.00. Following the completion of the sale, the chief executive officer now directly owns 505,420 shares in the company, valued at $38,346,215.40. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director John C. Inglis bought 659 shares of the firm's stock in a transaction on Thursday, March 14th. The stock was purchased at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the acquisition, the director now directly owns 659 shares in the company, valued at $49,682.01. The disclosure for this purchase can be found here. 0.61% of the stock is currently owned by company insiders.

American International Group Company Profile

American International Group, Inc offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products; and professional liability insurance.

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