American International Group (NYSE:AIG) Announces Quarterly Earnings Results

American International Group (NYSE:AIG) released its quarterly earnings results on Thursday. The insurance provider reported $2.00 EPS for the quarter, beating analysts’ consensus estimates of $1.92 by $0.08, Zacks reports. American International Group had a return on equity of 11.03% and a net margin of 11.13%.The firm had revenue of $7.08 billion for the quarter, compared to analyst estimates of $7.25 billion. During the same quarter in the previous year, the company posted $1.81 EPS.

American International Group Stock Down 1.5%

Shares of AIG traded down $1.18 on Friday, reaching $78.80. The company’s stock had a trading volume of 4,674,339 shares, compared to its average volume of 3,238,520. American International Group has a twelve month low of $71.25 and a twelve month high of $87.29. The stock has a market capitalization of $41.78 billion, a PE ratio of 14.40, a PEG ratio of 0.73 and a beta of 0.53. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.23. The firm has a fifty day moving average of $77.28 and a 200-day moving average of $76.74.

American International Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date is Wednesday, September 16th. American International Group’s dividend payout ratio (DPR) is currently 35.27%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on AIG. The Goldman Sachs Group increased their price objective on shares of American International Group from $85.00 to $88.00 and gave the stock a “buy” rating in a research report on Wednesday, July 1st. BMO Capital Markets lifted their price objective on American International Group from $83.00 to $89.00 in a research report on Thursday, May 7th. Barclays lifted their target price on American International Group from $80.00 to $81.00 and gave the stock an “equal weight” rating in a report on Friday. Piper Sandler reaffirmed a “neutral” rating and set a $80.00 price objective (down from $88.00) on shares of American International Group in a research report on Wednesday, July 15th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of American International Group from $98.00 to $95.00 and set an “outperform” rating for the company in a research note on Wednesday, July 8th. Seven equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat, American International Group presently has a consensus rating of “Hold” and an average target price of $88.28.

American International Group News Roundup

Here are the key news stories impacting American International Group this week:

• Positive Sentiment: Second-quarter earnings exceeded expectations. AIG reported adjusted earnings of $2.00 per share, up from $1.81 a year earlier and ahead of consensus estimates ranging from $1.89 to $1.92. Strong underwriting income and lower catastrophe losses were key drivers. AIG Beats Q2 Earnings Estimates on Robust Underwriting Income
• Positive Sentiment: Premium growth was broad-based. Net premiums written increased across all three of AIG’s business lines, reinforcing management’s view that organic growth and recent strategic transactions are strengthening the company’s diversified insurance platform. AIG Q2 earnings beat as NPW grows across all three lines
• Positive Sentiment: AIG declared a quarterly dividend of $0.50 per share. The dividend is payable September 30 to shareholders of record on September 16, implying $2.00 in annualized payments and a yield of approximately 2.5% based on the referenced share price.
• Neutral Sentiment: Barclays raised its price target modestly to $81 from $80 while maintaining an “equal weight” rating. The revised target suggests limited near-term upside and does not represent a strong bullish endorsement.
• Negative Sentiment: Revenue fell short of expectations. Quarterly revenue was approximately $7.08 billion, below the $7.25 billion consensus forecast. Weaker investment income partly offset the improvement in underwriting results, giving investors a reason to temper their reaction to the earnings beat. AIG quarterly earnings report

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD raised its position in American International Group by 39.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,371,853 shares of the insurance provider’s stock valued at $1,400,613,000 after buying an additional 4,661,246 shares during the last quarter. Hotchkis & Wiley Capital Management LLC boosted its holdings in American International Group by 22.0% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 10,256,290 shares of the insurance provider’s stock worth $805,529,000 after acquiring an additional 1,846,979 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC grew its stake in shares of American International Group by 10.8% in the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,482,558 shares of the insurance provider’s stock worth $640,133,000 after acquiring an additional 731,802 shares in the last quarter. Raymond James Financial Inc. raised its holdings in shares of American International Group by 4.4% in the second quarter. Raymond James Financial Inc. now owns 3,429,324 shares of the insurance provider’s stock valued at $293,516,000 after purchasing an additional 143,361 shares during the last quarter. Finally, Caisse de depot et placement du Quebec raised its holdings in shares of American International Group by 20.9% in the third quarter. Caisse de depot et placement du Quebec now owns 2,216,284 shares of the insurance provider’s stock valued at $174,067,000 after purchasing an additional 383,522 shares during the last quarter. Institutional investors own 90.60% of the company’s stock.

American International Group Company Profile

American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk.

The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time.