American International Group (NYSE:AIG) Issues Earnings Results, Misses Estimates By $0.14 EPS

American International Group (NYSE:AIG) announced its quarterly earnings data on Wednesday. The insurance provider reported $1.16 earnings per share for the quarter, missing analysts’ consensus estimates of $1.30 by ($0.14), Briefing.com reports. American International Group had a return on equity of 10.54% and a net margin of 9.98%. The firm had revenue of $1.00 million during the quarter, compared to analysts’ expectations of $11.64 billion. During the same quarter in the previous year, the firm earned $1.75 earnings per share. American International Group’s revenue was up .0% on a year-over-year basis.

American International Group Price Performance

American International Group stock traded down $4.31 during mid-day trading on Thursday, hitting $74.92. The stock had a trading volume of 11,089,782 shares, compared to its average volume of 4,205,426. The firm has a market capitalization of $49.72 billion, a P/E ratio of 11.83, a P/E/G ratio of 2.61 and a beta of 1.08. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.05. The firm’s 50 day moving average is $76.11 and its 200 day moving average is $74.70. American International Group has a one year low of $57.02 and a one year high of $80.83.

Insider Buying and Selling

In related news, major shareholder International Group American sold 1,932,609 shares of the company’s stock in a transaction on Tuesday, July 2nd. The shares were sold at an average price of $29.20, for a total value of $56,432,182.80. Following the completion of the transaction, the insider now owns 292,271,027 shares of the company’s stock, valued at approximately $8,534,313,988.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In related news, Director W Don Cornwell 1,000 shares of the stock in a transaction that occurred on Tuesday, July 30th. The was disclosed in a document filed with the SEC, which is available at the SEC website. Also, major shareholder International Group American sold 1,932,609 shares of the business’s stock in a transaction on Tuesday, July 2nd. The stock was sold at an average price of $29.20, for a total transaction of $56,432,182.80. Following the completion of the sale, the insider now owns 292,271,027 shares in the company, valued at approximately $8,534,313,988.40. The disclosure for this sale can be found here. 0.61% of the stock is currently owned by insiders.

American International Group declared that its Board of Directors has authorized a stock repurchase program on Wednesday, May 1st that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the insurance provider to buy up to 19.4% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on AIG shares. JPMorgan Chase & Co. boosted their price objective on shares of American International Group from $80.00 to $93.00 and gave the stock a “neutral” rating in a report on Thursday, July 11th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $87.00 target price on shares of American International Group in a research report on Thursday, June 27th. Evercore ISI cut their target price on shares of American International Group from $81.00 to $78.00 and set an “in-line” rating for the company in a research report on Thursday, June 27th. Bank of America lifted their target price on shares of American International Group from $81.00 to $82.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Wells Fargo & Company lifted their target price on shares of American International Group from $80.00 to $82.00 and gave the stock an “equal weight” rating in a research report on Friday, May 10th. Nine investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $82.56.

About American International Group

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.