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

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

American International Group Price Performance

AIG stock traded up $0.38 during midday trading on Friday, reaching $78.48. The company had a trading volume of 6,715,711 shares, compared to its average volume of 3,941,598. American International Group has a 1-year low of $48.95 and a 1-year high of $79.70. The stock has a 50 day moving average price of $75.39 and a 200-day moving average price of $69.47. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.31 and a quick 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. Stockholders of record on Friday, June 14th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.04%. This is an increase from American International Group’s previous quarterly dividend of $0.36. The ex-dividend date of this dividend is Friday, June 14th. American International Group’s dividend payout ratio is presently 21.49%.

Insiders Place Their Bets

In other news, Director John C. Inglis purchased 659 shares of the business’s stock in a transaction dated Thursday, March 14th. The stock was bought at an average price of $75.39 per share, with a total value of $49,682.01. Following the acquisition, the director now owns 659 shares in the company, valued at approximately $49,682.01. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other American International Group 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 completion of the transaction, 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 can be accessed through this hyperlink. Also, Director John C. Inglis purchased 659 shares of American International Group stock in a transaction dated Thursday, March 14th. The stock was bought at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the purchase, the director now owns 659 shares in the company, valued at approximately $49,682.01. The disclosure for this purchase can be found here. Corporate insiders own 0.61% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on AIG shares. Keefe, Bruyette & Woods boosted their price objective on shares of American International Group from $82.00 to $86.00 and gave the company an “outperform” rating in a research report on Wednesday, April 10th. Morgan Stanley increased their price objective 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. Bank of America cut American International Group from a “buy” rating to a “neutral” rating and boosted their target price for the company from $75.00 to $77.00 in a research note on Tuesday, February 20th. Evercore ISI raised their price target on shares of American International Group from $80.00 to $81.00 and gave the stock an “in-line” rating in a research note on Friday. Finally, BMO Capital Markets cut 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 research report on Thursday, February 15th. Eight analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat.com, American International Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $80.44.

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

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.