American International Group (NYSE:AIG) Hits New 12-Month High After Strong Earnings

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

The insurance provider reported $1.77 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.11. The firm had revenue of $12.58 billion for the quarter, compared to the consensus estimate of $12.04 billion. American International Group had a net margin of 7.78% and a return on equity of 10.68%. During the same period last year, the firm posted $1.63 earnings per share.

American International Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Thursday, March 14th were paid a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 1.86%. The ex-dividend date was Wednesday, March 13th. American International Group’s dividend payout ratio (DPR) is presently 28.86%.

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

Analyst Ratings Changes

AIG has been the topic of a number of analyst reports. Royal Bank of Canada lifted their target price on shares of American International Group from $76.00 to $80.00 and gave the stock an “outperform” rating in a research note on Thursday, February 15th. Piper Sandler lifted their price target on shares of American International Group from $87.00 to $89.00 and gave the company an “overweight” rating in a research report on Friday, April 19th. Morgan Stanley lifted their price target on shares of American International Group from $72.00 to $79.00 and gave the company an “equal weight” rating in a research report on Monday, April 15th. JPMorgan Chase & Co. lifted their price target 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. Finally, Wells Fargo & Company lifted their price target on shares of American International Group from $74.00 to $80.00 and gave the company an “equal weight” rating in a research report on Thursday, April 11th. Eight investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $80.38.

Insider Activity at American International Group

In other American International Group news, CEO Peter Zaffino sold 333,000 shares of the business’s stock in a transaction that occurred 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 owns 505,420 shares in the company, valued at approximately $38,346,215.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In other American International Group news, CEO Peter Zaffino sold 333,000 shares of the business’s stock in a transaction that occurred 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 owns 505,420 shares in the company, valued at approximately $38,346,215.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John C. Inglis purchased 659 shares of the stock in a transaction on Thursday, March 14th. The shares were purchased at an average price of $75.39 per share, with a total value of $49,682.01. Following the acquisition, the director now directly owns 659 shares in the company, valued at $49,682.01. The disclosure for this purchase can be found here. Company insiders own 0.61% of the company’s stock.

Institutional Trading of American International Group

Several institutional investors have recently modified their holdings of AIG. Norges Bank purchased a new stake in shares of American International Group during the 4th quarter worth approximately $746,005,000. LSV Asset Management grew its stake in shares of American International Group by 13.2% during the 3rd quarter. LSV Asset Management now owns 5,496,879 shares of the insurance provider’s stock worth $333,111,000 after purchasing an additional 639,079 shares during the period. FMR LLC grew its stake in shares of American International Group by 5.0% during the 3rd quarter. FMR LLC now owns 12,745,085 shares of the insurance provider’s stock worth $772,352,000 after purchasing an additional 604,901 shares during the period. Balyasny Asset Management L.P. grew its stake in shares of American International Group by 95.8% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,221,724 shares of the insurance provider’s stock worth $82,772,000 after purchasing an additional 597,661 shares during the period. Finally, Invesco Ltd. grew its stake in shares of American International Group by 3.0% during the 3rd quarter. Invesco Ltd. now owns 17,085,545 shares of the insurance provider’s stock worth $1,035,384,000 after purchasing an additional 503,547 shares during the period. Hedge funds and other institutional investors own 90.60% of the company’s stock.

American International Group Stock Performance

The firm has a market capitalization of $52.81 billion, a price-to-earnings ratio of 15.63, a PEG ratio of 1.08 and a beta of 1.02. The stock’s 50 day moving average price is $75.10 and its two-hundred day moving average price is $69.30. The company has a current ratio of 0.31, a quick 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.