Wells Fargo & Company Issues Pessimistic Forecast for American International Group (NYSE:AIG) Stock Price

Key Points

• Wells Fargo cut its price target on AIG from $86 to $85 and maintained an equal weight rating, implying roughly a 7.2% upside from the current price.
• Analysts are mixed—Goldman Sachs lifted its target to $90 (buy) while others ranged $79–$90—but the consensus is a Hold with an average target of $87.94.
• AIG beat estimates last quarter with $2.11 EPS vs. $1.89 expected, reported roughly in-line revenue, and trades at about $42.6B market cap with a P/E of 13.97.

American International Group (NYSE:AIG - Get Free Report) had its target price lowered by equities research analysts at Wells Fargo & Company from $86.00 to $85.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has an "equal weight" rating on the insurance provider's stock. Wells Fargo & Company's price target would suggest a potential upside of 7.22% from the stock's current price.

A number of other research firms have also issued reports on AIG. The Goldman Sachs Group raised their price target on American International Group from $87.00 to $90.00 and gave the stock a "buy" rating in a report on Tuesday. 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. Bank of America dropped their price target on shares of American International Group from $80.00 to $79.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 14th. Barclays raised their price objective on shares of American International Group from $78.00 to $80.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. Finally, Cantor Fitzgerald boosted their target price on American International Group from $81.00 to $85.00 and gave the stock a "neutral" rating in a research report on Monday. One research 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. Based on data from MarketBeat.com, American International Group has a consensus rating of "Hold" and an average target price of $87.94.

American International Group Price Performance

AIG stock opened at $79.28 on Wednesday. The company has a current ratio of 0.65, a quick ratio of 0.61 and a debt-to-equity ratio of 0.23. The company has a market capitalization of $42.56 billion, a P/E ratio of 13.97, a PEG ratio of 0.75 and a beta of 0.53. The business has a 50 day simple moving average of $76.82 and a 200-day simple moving average of $77.77. American International Group has a twelve month low of $71.25 and a twelve month high of $87.46.

American International Group (NYSE:AIG - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. 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 firm had revenue of $7.02 billion during the quarter, compared to the consensus estimate of $7.03 billion. During the same quarter in the prior year, the firm earned $1.17 EPS. As a group, equities analysts anticipate that American International Group will post 7.86 EPS for the current year.

Institutional Trading of American International Group

Institutional investors have recently modified their holdings of the company. Capital Research Global Investors lifted its holdings in shares of American International Group by 79.6% during the 3rd quarter. Capital Research Global Investors now owns 28,534,448 shares of the insurance provider's stock valued at $2,241,091,000 after acquiring an additional 12,645,616 shares in the last quarter. Norges Bank acquired a new position in American International Group during the 4th quarter worth approximately $636,782,000. Vanguard Group Inc. boosted its holdings in American International Group by 11.6% in the 3rd 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 during the period. Price T Rowe Associates Inc. MD grew its position in American International Group by 39.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 16,371,853 shares of the insurance provider's stock valued at $1,400,613,000 after acquiring an additional 4,661,246 shares in the last quarter. Finally, Franklin Resources Inc. raised its stake in shares of 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 valued at $1,336,147,000 after purchasing an additional 4,210,363 shares during the period. Hedge funds and other institutional investors own 90.60% of the company's stock.

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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