American International Group (NYSE:AIG) Announces Earnings Results

American International Group (NYSE:AIG) announced its quarterly earnings data on Wednesday. The insurance provider reported $1.77 earnings per share for the quarter, beating analysts’ consensus estimates of $1.66 by $0.11, Briefing.com reports. The firm had revenue of $12.58 billion for the quarter, compared to analyst estimates of $12.04 billion. American International Group had a net margin of 9.98% and a return on equity of 10.68%. During the same period in the previous year, the company earned $1.63 earnings per share.

American International Group Trading Up 0.5 %

Shares of AIG traded up $0.38 during trading on Friday, reaching $78.48. 6,715,711 shares of the company traded hands, compared to its average volume of 3,941,598. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.44. The stock has a market cap of $53.44 billion, a PE ratio of 11.71, a price-to-earnings-growth ratio of 1.12 and a beta of 1.02. The stock has a 50-day simple moving average of $75.39 and a 200-day simple moving average of $69.47. American International Group has a twelve month low of $48.95 and a twelve month high of $79.70.

American International Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, June 14th will be issued a $0.40 dividend. The ex-dividend date is Friday, June 14th. This is a boost 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%.

Insider Activity at American International Group

In other news, CEO Peter Zaffino sold 333,000 shares of the firm’s stock in a transaction on Friday, March 15th. The stock was 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 in the company, valued at $38,346,215.40. The transaction was disclosed in a document filed with the SEC, which is available at this link. In related news, Director John C. Inglis bought 659 shares of the firm’s stock in a transaction that occurred on Thursday, March 14th. The stock was purchased at an average cost of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the acquisition, the director now owns 659 shares in the company, valued at approximately $49,682.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Peter Zaffino sold 333,000 shares of the company’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $75.87, for a total transaction of $25,264,710.00. Following the sale, 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. 0.61% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Keefe, Bruyette & Woods increased their price objective on American International Group from $82.00 to $86.00 and gave the company an “outperform” rating in a report on Wednesday, April 10th. TD Cowen initiated coverage on shares of American International Group in a report on Wednesday, January 10th. They set a “market perform” rating and a $78.00 target price for the company. Bank of America downgraded American International Group from a “buy” rating to a “neutral” rating and increased their price target for the stock from $75.00 to $77.00 in a research report on Tuesday, February 20th. Morgan Stanley raised their target price on American International Group from $72.00 to $79.00 and gave the stock an “equal weight” rating in a report on Monday, April 15th. Finally, Piper Sandler upped their price objective on American International Group from $87.00 to $89.00 and gave the stock an “overweight” rating in a research report on Friday, April 19th. Eight analysts have rated the stock with a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat.com, American International Group has an average rating of “Moderate Buy” and an average price target of $80.44.

American International Group declared that its board has approved a share buyback plan on Wednesday, May 1st that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the insurance provider to reacquire up to 19.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

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.