American International Group (NYSE:AIG) Hits New 52-Week High on Earnings Beat

American International Group, Inc. (NYSE:AIG) shares reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $79.70 and last traded at $77.88, with a volume of 1109757 shares changing hands. The stock had previously closed at $75.81.

The insurance provider reported $1.77 earnings per share for the quarter, topping analysts’ consensus estimates of $1.66 by $0.11. American International Group had a net margin of 9.98% and a return on equity of 10.68%. The firm had revenue of $12.58 billion during the quarter, compared to analysts’ expectations of $12.04 billion. During the same period last year, the firm posted $1.63 earnings per share.

American International Group Increases Dividend

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

American International Group declared that its board has approved a share 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 reacquire 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.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Keefe, Bruyette & Woods raised their price objective on American International Group from $82.00 to $86.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 10th. Wells Fargo & Company boosted their target price on American International Group from $74.00 to $80.00 and gave the company an “equal weight” rating in a research note on Thursday, April 11th. Morgan Stanley lifted their price target on American International Group from $72.00 to $79.00 and gave the company an “equal weight” rating in a report on Monday, April 15th. Bank of America downgraded American International Group from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $75.00 to $77.00 in a report on Tuesday, February 20th. Finally, Royal Bank of Canada lifted their target price on shares of American International Group from $76.00 to $80.00 and gave the company an “outperform” rating in a research note on Thursday, February 15th. Eight equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $80.44.

Insider Buying and Selling at American International Group

In other American International Group news, CEO Peter Zaffino sold 333,000 shares of American International Group 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 transaction, the chief executive officer now directly owns 505,420 shares of the company’s stock, valued at approximately $38,346,215.40. The sale was disclosed in a document filed with the SEC, which is accessible through this link. In related news, Director John C. Inglis bought 659 shares of American International Group stock in a transaction that occurred on Thursday, March 14th. The stock was acquired at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the purchase, the director now owns 659 shares in the company, valued at $49,682.01. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Peter Zaffino sold 333,000 shares of the business’s stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $75.87, for a total value of $25,264,710.00. Following the transaction, the chief executive officer now owns 505,420 shares in the company, valued at $38,346,215.40. The disclosure for this sale can be found here. Corporate insiders own 0.61% of the company’s stock.

Institutional Trading of American International Group

A number of hedge funds have recently modified their holdings of AIG. Valued Wealth Advisors LLC boosted its stake in American International Group by 303.3% during the first quarter. Valued Wealth Advisors LLC now owns 367 shares of the insurance provider’s stock worth $29,000 after buying an additional 276 shares in the last quarter. Rise Advisors LLC acquired a new stake in shares of American International Group during the 1st quarter valued at about $29,000. OFI Invest Asset Management bought a new stake in American International Group in the third quarter valued at about $26,000. CENTRAL TRUST Co raised its position in American International Group by 123.8% in the first quarter. CENTRAL TRUST Co now owns 452 shares of the insurance provider’s stock worth $35,000 after purchasing an additional 250 shares in the last quarter. Finally, Headlands Technologies LLC bought a new position in American International Group during the third quarter worth about $32,000. Institutional investors own 90.60% of the company’s stock.

American International Group Stock Up 0.5 %

The company has a market capitalization of $53.44 billion, a price-to-earnings ratio of 11.71, a P/E/G ratio of 1.09 and a beta of 1.02. The business has a fifty day simple moving average of $75.24 and a two-hundred day simple 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.

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.