American International Group (AIG) Cut to Sell at ValuEngine

ValuEngine cut shares of American International Group (NYSE:AIG) from a hold rating to a sell rating in a report published on Monday, February 4th.

A number of other research firms have also weighed in on AIG. Compass Point initiated coverage on shares of American International Group in a research note on Tuesday, January 15th. They issued a neutral rating and a $44.00 target price on the stock. Wells Fargo & Co reissued a buy rating on shares of American International Group in a research report on Thursday, December 20th. Royal Bank of Canada restated an outperform rating and issued a $58.00 price target on shares of American International Group in a research report on Friday, December 7th. They noted that the move was a valuation call. Barclays lowered their price target on shares of American International Group from $71.00 to $62.00 and set an overweight rating on the stock in a report on Monday, November 12th. Finally, Morgan Stanley decreased their target price on American International Group from $65.00 to $53.00 and set a buy rating on the stock in a research report on Tuesday, November 6th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and eight have issued a buy rating to the stock. The company has an average rating of Buy and a consensus price target of $55.77.

American International Group stock traded up $0.03 during midday trading on Monday, reaching $43.23. The company’s stock had a trading volume of 5,349,002 shares, compared to its average volume of 6,761,842. American International Group has a 52 week low of $36.16 and a 52 week high of $58.25. The stock has a market cap of $37.27 billion, a PE ratio of 36.95, a P/E/G ratio of 0.89 and a beta of 1.38. The company has a quick ratio of 0.26, a current ratio of 0.26 and a debt-to-equity ratio of 0.60.

American International Group (NYSE:AIG) last posted its quarterly earnings results on Wednesday, February 13th. The insurance provider reported ($0.63) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($1.10). American International Group had a positive return on equity of 1.76% and a negative net margin of 0.01%. The company had revenue of $12.33 billion for the quarter, compared to the consensus estimate of $12.13 billion. During the same quarter in the previous year, the business earned $0.57 earnings per share. As a group, analysts expect that American International Group will post 4.4 earnings per share for the current year.

The company also recently announced a quarterly dividend, which will be paid on Friday, March 29th. Stockholders of record on Friday, March 15th will be given a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 2.96%. The ex-dividend date is Thursday, March 14th. American International Group’s dividend payout ratio (DPR) is currently 109.40%.

American International Group declared that its board has authorized a stock repurchase program on Wednesday, February 13th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the insurance provider to purchase up to 5.4% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Institutional investors have recently added to or reduced their stakes in the company. Norinchukin Bank The boosted its holdings in shares of American International Group by 10.1% during the fourth quarter. Norinchukin Bank The now owns 69,225 shares of the insurance provider’s stock worth $2,728,000 after purchasing an additional 6,372 shares during the period. ARGA Investment Management LP boosted its holdings in shares of American International Group by 13.9% during the third quarter. ARGA Investment Management LP now owns 93,099 shares of the insurance provider’s stock worth $4,957,000 after purchasing an additional 11,350 shares during the period. Jupiter Asset Management Ltd. increased its holdings in American International Group by 1.7% in the 3rd quarter. Jupiter Asset Management Ltd. now owns 254,025 shares of the insurance provider’s stock valued at $13,527,000 after buying an additional 4,346 shares during the period. Wedge Capital Management L L P NC lifted its position in American International Group by 17.4% during the 4th quarter. Wedge Capital Management L L P NC now owns 1,073,892 shares of the insurance provider’s stock worth $42,322,000 after buying an additional 159,462 shares in the last quarter. Finally, Capital Advisors Inc. OK bought a new stake in shares of American International Group in the 4th quarter valued at about $9,749,000. 87.94% of the stock is currently owned by institutional investors and hedge funds.

American International Group Company Profile

American International Group, Inc provides insurance products for commercial, institutional, and individual customers in North America and internationally. The company's General Insurance segment offers general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products, as well as various risk-sharing and other customized structured programs; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, surety, crop, and marine insurance.

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To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for American International Group (NYSE:AIG)

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