Wells Fargo & Company Has Lowered Expectations for American International Group (NYSE:AIG) Stock Price

Key Points

• Wells Fargo lowered its price target on AIG to $86 from $87 and kept an "equal weight" rating, implying about a 10.77% potential upside from the prior close.
• Street sentiment is mixed with an average rating of "Hold" and an average target price of $87.59; analyst breakdown is 1 Strong Buy, 7 Buy and 12 Hold.
• AIG reported quarterly EPS of $1.96 (beating the $1.90 estimate) while revenue missed expectations, shares traded near $77.64, and institutional investors own about 90.6% of the stock.

American International Group (NYSE:AIG - Get Free Report) had its price objective lowered by equities research analysts at Wells Fargo & Company from $87.00 to $86.00 in a research report issued on Thursday,Benzinga reports. The firm presently has an "equal weight" rating on the insurance provider's stock. Wells Fargo & Company's price objective would suggest a potential upside of 10.77% from the stock's previous close.

Several other equities research analysts have also recently weighed in on the company. Cantor Fitzgerald boosted their target price on American International Group from $77.00 to $81.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 17th. Bank of America cut their price target on American International Group from $89.00 to $80.00 and set a "neutral" rating on the stock in a research report on Friday, January 16th. TD Cowen lifted their price target on American International Group from $86.00 to $90.00 and gave the stock a "hold" rating in a research report on Tuesday, December 16th. Keefe, Bruyette & Woods lifted their price target on American International Group from $96.00 to $97.00 and gave the stock an "outperform" rating in a research report on Thursday, February 12th. Finally, Mizuho lifted their price target 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. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $87.59.

American International Group Stock Up 0.3%

Shares of AIG traded up $0.21 during midday trading on Thursday, hitting $77.64. The company had a trading volume of 111,716 shares, compared to its average volume of 4,607,545. The company's 50-day simple moving average is $76.94 and its 200-day simple moving average is $78.22. 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 firm has a market capitalization of $41.68 billion, a P/E ratio of 14.31, a P/E/G ratio of 0.58 and a beta of 0.59. American International Group has a 1 year low of $71.25 and a 1 year high of $87.46.

American International Group (NYSE:AIG - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The insurance provider reported $1.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.90 by $0.06. The business had revenue of $6.55 billion during the quarter, compared to analysts' expectations 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 quarter last year, the business posted $1.30 EPS. As a group, sell-side analysts expect that American International Group will post 6.24 EPS for the current year.

Institutional Trading of American International Group

Large investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of 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 valued at $5,378,635,000 after acquiring an additional 7,117,583 shares during the last quarter. Capital Research Global Investors lifted 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 buying an additional 12,645,616 shares during the period. Wellington Management Group LLP lifted 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 buying an additional 1,899,203 shares during the period. Price T Rowe Associates Inc. MD lifted its position in American International Group by 39.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 16,371,853 shares of the insurance provider's stock worth $1,400,613,000 after buying an additional 4,661,246 shares during the period. Finally, Franklin Resources Inc. lifted 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 buying an additional 4,210,363 shares during the period. Institutional investors and hedge funds own 90.60% of the company's stock.

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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