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

American International Group (NYSE:AIG) released its quarterly earnings data on Thursday. The insurance provider reported $1.77 EPS for the quarter, beating the consensus estimate of $1.66 by $0.11, Briefing.com reports. American International Group had a net margin of 9.98% and a return on equity of 10.68%. The business had revenue of $12.58 billion during the quarter, compared to analyst estimates of $12.04 billion. During the same quarter last year, the business earned $1.63 earnings per share.

American International Group Stock Up 0.5 %

AIG stock 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 business 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 12 month low of $48.95 and a 12 month high of $79.70. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.31 and a current ratio of 0.31. The company has a market capitalization of $53.44 billion, a price-to-earnings ratio of 11.71, a price-to-earnings-growth ratio of 1.12 and a beta of 1.02.

American International Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 2.04%. The ex-dividend date is Friday, June 14th. This is a boost from American International Group’s previous quarterly dividend of $0.36. American International Group’s dividend payout ratio (DPR) is 21.49%.

Insiders Place Their Bets

In other news, Director John C. Inglis purchased 659 shares of the business’s stock in a transaction on Thursday, March 14th. The shares were acquired at an average cost of $75.39 per share, with a total value of $49,682.01. Following the completion of the acquisition, the director now owns 659 shares of the company’s stock, valued at $49,682.01. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. In other American International Group news, CEO Peter Zaffino sold 333,000 shares of the stock in a transaction dated Friday, March 15th. The stock was sold at an average price of $75.87, for a total value of $25,264,710.00. Following the completion of the sale, 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. Also, Director John C. Inglis purchased 659 shares of the firm’s stock in a transaction on Thursday, March 14th. The stock was acquired at an average price of $75.39 per share, with a total value of $49,682.01. Following the completion of the purchase, the director now owns 659 shares of the company’s stock, valued at approximately $49,682.01. The disclosure for this purchase can be found here. 0.61% of the stock is currently owned by corporate insiders.

American International Group announced that its Board of Directors has authorized a share repurchase program on Wednesday, May 1st that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the insurance provider to repurchase up to 19.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on AIG. Citigroup lifted their price target on shares of American International Group from $79.00 to $87.00 and gave the stock a “buy” rating in a research note on Tuesday, April 16th. BMO Capital Markets dropped their target price on American International Group from $83.00 to $81.00 and set an “outperform” rating for the company in a research report on Thursday, February 15th. Wells Fargo & Company upped their target price on American International Group from $74.00 to $80.00 and gave the company an “equal weight” rating in a research note on Thursday, April 11th. JPMorgan Chase & Co. boosted their price objective on American International Group from $73.00 to $80.00 and gave the company a “neutral” rating in a report on Monday, April 8th. Finally, Morgan Stanley increased their target price on American International Group from $72.00 to $79.00 and gave the stock an “equal weight” rating in a research note on Monday, April 15th. Eight analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $80.44.

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.