American International Group (NYSE:AIG) Announces Earnings Results

American International Group (NYSE:AIG) released its quarterly earnings results 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 the consensus estimate of $12.04 billion. During the same quarter last year, the business posted $1.63 earnings per share.

American International Group Stock Up 0.5 %

Shares of AIG traded up $0.38 during trading hours 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 50 day moving average of $75.24 and a two-hundred day moving average of $69.36. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.44. The firm has a market cap of $53.44 billion, a price-to-earnings ratio of 11.71, a P/E/G ratio of 1.12 and a beta of 1.02. American International Group has a 1-year low of $48.95 and a 1-year high of $79.70.

American International Group Increases Dividend

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

American International Group announced that its Board of Directors has approved a share 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 stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have commented on the company. Wells Fargo & Company lifted their price target 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. Bank of America lowered American International Group from a “buy” rating to a “neutral” rating and upped their target price for the company from $75.00 to $77.00 in a research report on Tuesday, February 20th. JPMorgan Chase & Co. increased their price objective 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. TD Cowen initiated coverage on shares of 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. Finally, Morgan Stanley lifted their price target on American International Group from $72.00 to $79.00 and gave the stock an “equal weight” rating in a research note on Monday, April 15th. Eight equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $80.44.

Insider Activity at American International Group

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