American International Group (NYSE:AIG) Hits New 1-Year High After Earnings Beat

American International Group, Inc. (NYSE:AIG)’s share price hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $79.70 and last traded at $77.88, with a volume of 1109757 shares changing hands. The stock had previously closed at $75.81.

The insurance provider reported $1.77 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.11. 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 analysts’ expectations of $12.04 billion. During the same quarter in the previous year, the company earned $1.63 EPS.

American International Group Increases Dividend

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

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

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Royal Bank of Canada boosted their price target on American International Group from $76.00 to $80.00 and gave the company an “outperform” rating in a research note on Thursday, February 15th. BMO Capital Markets dropped their target price on shares of 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. Bank of America lowered shares of 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 boosted their price objective on shares of American International Group from $72.00 to $79.00 and gave the company an “equal weight” rating in a research report on Monday, April 15th. Finally, Citigroup raised their target price on American International Group from $79.00 to $87.00 and gave the company a “buy” rating in a report on Tuesday, April 16th. Eight equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat.com, American International Group has an average rating of “Moderate Buy” and an average price target of $80.44.

Insider Buying and Selling at American International Group

In other news, CEO Peter Zaffino sold 333,000 shares of the business’s stock in a transaction dated 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 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 accessible through the SEC website. In related news, CEO Peter Zaffino sold 333,000 shares of the business’s stock in a transaction on Friday, March 15th. The shares were sold at an average price of $75.87, for a total value of $25,264,710.00. Following the sale, the chief executive officer now owns 505,420 shares of the company’s stock, valued at $38,346,215.40. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director John C. Inglis bought 659 shares of the stock in a transaction that occurred on Thursday, March 14th. The shares were bought at an average cost of $75.39 per share, with a total value of $49,682.01. Following the completion of the transaction, the director now owns 659 shares in the company, valued at $49,682.01. The disclosure for this purchase can be found here. Corporate insiders own 0.61% of the company’s stock.

Institutional Trading of American International Group

Several institutional investors have recently added to or reduced their stakes in AIG. Norges Bank bought a new position in American International Group during the 4th quarter worth approximately $746,005,000. LSV Asset Management lifted its holdings in American International Group by 13.2% in the third quarter. LSV Asset Management now owns 5,496,879 shares of the insurance provider’s stock valued at $333,111,000 after buying an additional 639,079 shares during the period. FMR LLC lifted its holdings in American International Group by 5.0% in the third quarter. FMR LLC now owns 12,745,085 shares of the insurance provider’s stock valued at $772,352,000 after buying an additional 604,901 shares during the period. Balyasny Asset Management L.P. boosted its position in American International Group by 95.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 1,221,724 shares of the insurance provider’s stock valued at $82,772,000 after acquiring an additional 597,661 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in American International Group by 3.0% during the 3rd quarter. Invesco Ltd. now owns 17,085,545 shares of the insurance provider’s stock worth $1,035,384,000 after acquiring an additional 503,547 shares during the period. 90.60% of the stock is currently owned by institutional investors.

American International Group Price Performance

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 business has a 50 day moving average price of $75.24 and a 200-day moving average price of $69.36. The company has a market capitalization of $53.44 billion, a price-to-earnings ratio of 11.71, a P/E/G ratio of 1.09 and a beta of 1.02.

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.