American International Group (NYSE:AIG) Posts Earnings Results, Beats Expectations By $0.18 EPS

American International Group (NYSE:AIG) released its quarterly earnings data on Tuesday. The insurance provider reported $2.06 EPS for the quarter, topping analysts’ consensus estimates of $1.88 by $0.18, Zacks reports. The business had revenue of $7.42 billion during the quarter, compared to the consensus estimate of $7.42 billion. American International Group had a return on equity of 11.05% and a net margin of 11.13%. During the same period in the prior year, the firm posted $2.20 EPS.

American International Group Trading Down 2.1%

Shares of AIG opened at $80.65 on Wednesday. The stock’s 50-day moving average is $77.26 and its two-hundred day moving average is $76.84. The stock has a market cap of $42.17 billion, a PE ratio of 9.96, a P/E/G ratio of 0.86 and a beta of 0.48. American International Group has a 12 month low of $71.25 and a 12 month high of $87.29. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.61 and a quick ratio of 0.61.

American International Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 30th. Shareholders of record on Wednesday, December 16th will be given a $0.50 dividend. The ex-dividend date of this dividend is Wednesday, December 16th. This represents a $2.00 annualized dividend and a yield of 2.5%. American International Group’s dividend payout ratio (DPR) is 36.56%.

Key Stories Impacting American International Group

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

• Positive Sentiment: AIG reported adjusted earnings of $2.06 per share, above the roughly $1.88 analyst consensus, and said net premiums written grew broadly. Revenue of $7.42 billion was in line with estimates. The earnings beat and premium growth may support investor sentiment, although EPS was below $2.20 a year earlier. AIG Q3 earnings beat on broad-based net premiums written growth
• Positive Sentiment: The company declared a quarterly dividend of $0.50 per share, or $2.00 annualized, representing a stated yield of about 2.5%. The dividend may appeal to income-focused investors.
• Negative Sentiment: General Insurance Q3 underwriting income fell 29%. Storm-related losses weighed on underwriting results, tempering the otherwise stronger earnings and premium-growth news. AIG’s General Insurance Q3 Underwriting Income Down 29%

Analysts Set New Price Targets

A number of research firms have issued reports on AIG. UBS Group boosted their price target on American International Group from $98.00 to $100.00 and gave the company a “buy” rating in a research report on Tuesday, October 6th. Argus restated a “buy” rating and set a $90.00 price target on shares of American International Group in a research note on Wednesday, September 2nd. Barclays raised their price objective on American International Group from $80.00 to $81.00 and gave the stock an “equal weight” rating in a report on Friday, August 7th. Piper Sandler lifted their price objective on American International Group from $80.00 to $84.00 and gave the company a “neutral” rating in a research note on Monday, August 10th. Finally, Bank of America reaffirmed a “neutral” rating on shares of American International Group in a research note on Wednesday. Eight analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, American International Group has a consensus rating of “Hold” and a consensus price target of $87.68.

Insider Activity

In other news, insider Peter Zaffino sold 36,829 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $76.14, for a total value of $2,804,160.06. Following the completion of the sale, the insider owned 556,004 shares in the company, valued at approximately $42,334,144.56. This trade represents a 6.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.60% of the company’s stock.

About American International Group

American International Group, Inc (NYSE:AIG) is a global insurance organization that provides property and casualty insurance products and related services to businesses, institutions, and individuals. Its offerings include commercial insurance, personal insurance, specialty coverage, accident and health products, and travel-related protection.

AIG serves customers through operations in the United States and international markets. Its commercial insurance business supports companies across industries with coverage such as property, casualty, liability, marine, and other specialty risks, while its personal insurance operations provide protection for individuals and families.

The company was founded in Shanghai in 1919 by Cornelius Vander Starr and is headquartered in New York City.