American International Group (NYSE:AIG) Issues Earnings Results

American International Group (NYSE:AIG) released its quarterly earnings results on Thursday. The insurance provider reported $1.77 earnings per share for the quarter, beating 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 firm had revenue of $12.58 billion for the quarter, compared to analysts’ expectations of $12.04 billion. During the same period in the prior year, the firm earned $1.63 EPS.

American International Group Trading Up 0.5 %

AIG stock opened at $78.48 on Friday. The company has a market capitalization of $53.44 billion, a price-to-earnings ratio of 11.71, a PEG ratio of 1.09 and a beta of 1.02. 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 1-year low of $48.95 and a 1-year high of $79.70. The business has a 50 day simple moving average of $75.24 and a two-hundred day simple moving average of $69.36.

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 given a dividend of $0.40 per share. The ex-dividend date is Friday, June 14th. This represents a $1.60 annualized dividend and a dividend yield of 2.04%. This is a boost from American International Group’s previous quarterly dividend of $0.36. American International Group’s dividend payout ratio (DPR) is currently 21.49%.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. BMO Capital Markets lowered their target price on American International Group from $83.00 to $81.00 and set an “outperform” rating on the stock in a report on Thursday, February 15th. Keefe, Bruyette & Woods raised their price objective on shares of American International Group from $82.00 to $86.00 and gave the stock an “outperform” rating in a report on Wednesday, April 10th. JPMorgan Chase & Co. boosted their target price on shares of American International Group from $73.00 to $80.00 and gave the company a “neutral” rating in a research report on Monday, April 8th. Evercore ISI increased their price target on shares of American International Group from $80.00 to $81.00 and gave the stock an “in-line” rating in a research report on Friday. Finally, Citigroup boosted their price objective on shares of American International Group from $79.00 to $87.00 and gave the company a “buy” rating in a research report on Tuesday, April 16th. Eight investment analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $80.44.

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

Insider Activity

In related news, CEO Peter Zaffino sold 333,000 shares of the firm’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 transaction, the chief executive officer now directly owns 505,420 shares of the company’s stock, valued at $38,346,215.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, Director John C. Inglis acquired 659 shares of American International Group stock in a transaction on 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 purchase, the director now directly owns 659 shares in the company, valued at approximately $49,682.01. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Peter Zaffino sold 333,000 shares of the stock in a transaction that occurred on 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 of the company’s stock, valued at $38,346,215.40. The disclosure for this sale can be found here. Company insiders own 0.61% of the company’s stock.

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.