American International Group (NYSE:AIG) Posts Earnings Results, Beats Expectations By $0.11 EPS

American International Group (NYSE:AIG) posted its quarterly earnings data on Thursday. The insurance provider reported $1.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 company had revenue of $12.58 billion for the quarter, compared to the consensus estimate of $12.04 billion. During the same period last year, the company earned $1.63 earnings per share.

American International Group Trading Up 0.5 %

AIG traded up $0.38 during trading on Friday, reaching $78.48. 6,715,711 shares of the stock traded hands, compared to its average volume of 3,941,598. The stock has a market capitalization of $53.44 billion, a PE ratio of 11.71, a P/E/G ratio of 1.12 and a beta of 1.02. The stock’s 50-day moving average is $75.39 and its 200 day moving average is $69.47. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.44. American International Group has a 12 month low of $48.95 and a 12 month high of $79.70.

American International Group Increases Dividend

The business 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. This represents a $1.60 dividend on an annualized basis and a yield of 2.04%. This is an increase from American International Group’s previous quarterly dividend of $0.36. The ex-dividend date is Friday, June 14th. American International Group’s dividend payout ratio is presently 21.49%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. UBS Group lifted their price objective on shares of American International Group from $83.00 to $84.00 and gave the company a “buy” rating in a report on Thursday, February 22nd. Morgan Stanley lifted 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 report on Monday, April 15th. BMO Capital Markets lowered their price objective on shares of American International Group from $83.00 to $81.00 and set an “outperform” rating on the stock in a report on Thursday, February 15th. Evercore ISI raised their target price on shares of American International Group from $80.00 to $81.00 and gave the company an “in-line” rating in a research note on Friday. Finally, Piper Sandler raised their target price on shares of American International Group from $87.00 to $89.00 and gave the company an “overweight” rating in a research note on Friday, April 19th. Eight equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to data from MarketBeat, American International Group currently has an average rating of “Moderate Buy” and a consensus price target of $80.44.

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

Insider Transactions at American International Group

In other American International Group news, Director John C. Inglis purchased 659 shares of the company’s stock in a transaction that occurred on Thursday, March 14th. The shares were acquired at an average price of $75.39 per share, with a total value of $49,682.01. Following the transaction, the director now owns 659 shares in the company, valued at $49,682.01. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other news, Director John C. Inglis acquired 659 shares of the firm’s stock in a transaction on Thursday, March 14th. The stock was purchased at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the purchase, the director now owns 659 shares in the company, valued at approximately $49,682.01. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Peter Zaffino sold 333,000 shares of the stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $75.87, for a total transaction of $25,264,710.00. Following the completion of the sale, the chief executive officer now owns 505,420 shares of the company’s stock, valued at approximately $38,346,215.40. The disclosure for this sale can be found here. Insiders own 0.61% of the company’s stock.

American International Group Company Profile

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.