American International Group (NYSE:AIG) Issues Earnings Results, Beats Estimates By $0.11 EPS

American International Group (NYSE:AIG) issued its quarterly earnings data on Wednesday. The insurance provider reported $1.77 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.11, Briefing.com reports. American International Group had a return on equity of 10.68% and a net margin of 9.98%. The company had revenue of $12.58 billion during the quarter, compared to analyst estimates of $12.04 billion. During the same period in the prior year, the business posted $1.63 earnings per share.

American International Group Stock Up 0.5 %

Shares of AIG traded up $0.38 during mid-day trading on Friday, reaching $78.48. The company’s stock had a trading volume of 6,715,711 shares, compared to its average volume of 3,941,598. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.31 and a quick ratio of 0.31. American International Group has a 12-month low of $48.95 and a 12-month high of $79.70. The stock has a market cap of $53.44 billion, a PE ratio of 11.71, a price-to-earnings-growth ratio of 1.12 and a beta of 1.02. The company’s 50 day moving average is $75.39 and its 200 day moving average is $69.47.

American International Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, June 14th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 2.04%. The ex-dividend date is Friday, June 14th. This is a positive change from American International Group’s previous quarterly dividend of $0.36. American International Group’s dividend payout ratio is 21.49%.

Insider Activity at American International Group

In other news, Director John C. Inglis bought 659 shares of the business’s stock in a transaction dated Thursday, March 14th. The shares were acquired at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the transaction, the director now owns 659 shares of the company’s stock, valued at $49,682.01. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other American International Group news, Director John C. Inglis bought 659 shares of the stock in a transaction dated Thursday, March 14th. The shares were acquired at an average cost of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the transaction, the director now owns 659 shares in the company, valued at approximately $49,682.01. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Peter Zaffino sold 333,000 shares of the company’s stock in a transaction on 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 owns 505,420 shares of the company’s stock, valued at approximately $38,346,215.40. The disclosure for this sale can be found here. 0.61% of the stock is currently owned by corporate insiders.

American International Group declared that its board has initiated a stock buyback program on Wednesday, May 1st that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the insurance provider to purchase up to 19.4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

AIG has been the subject of a number of research analyst reports. Citigroup increased their price target on American International Group from $79.00 to $87.00 and gave the stock a “buy” rating in a report on Tuesday, April 16th. Wells Fargo & Company increased their target price on shares of American International Group from $74.00 to $80.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 11th. Keefe, Bruyette & Woods boosted their price target on shares of American International Group from $82.00 to $86.00 and gave the company an “outperform” rating in a research note on Wednesday, April 10th. Piper Sandler increased their target price on American International Group from $87.00 to $89.00 and gave the stock an “overweight” rating in a research note on Friday, April 19th. Finally, TD Cowen initiated coverage on American International Group in a research report on Wednesday, January 10th. They issued a “market perform” rating and a $78.00 target price for the company. Eight analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $80.44.

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.