Investors Buy Large Volume of Call Options on American International Group (NYSE:AIG)

American International Group, Inc. (NYSE:AIG) was the target of unusually large options trading activity on Friday. Traders bought 5,103 call options on the stock. This is an increase of approximately 38% compared to the typical daily volume of 3,700 call options.

American International Group Stock Performance

Shares of American International Group stock traded down $0.86 during trading on Friday, hitting $84.69. 764,364 shares of the company’s stock traded hands, compared to its average volume of 4,769,203. American International Group has a 1 year low of $69.24 and a 1 year high of $88.07. The business has a 50-day simple moving average of $79.98 and a 200-day simple moving average of $80.43. The stock has a market capitalization of $45.70 billion, a P/E ratio of 15.39, a PEG ratio of 0.88 and a beta of 0.61. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.32 and a quick ratio of 1.32.

American International Group (NYSE:AIG) last issued its earnings results on Wednesday, November 5th. The insurance provider reported $2.20 earnings per share for the quarter, topping analysts’ consensus estimates of $1.57 by $0.63. The business had revenue of $6.35 billion during the quarter, compared to analyst estimates of $6.82 billion. American International Group had a return on equity of 9.09% and a net margin of 11.89%.During the same quarter in the previous year, the firm earned $1.23 EPS. As a group, analysts forecast that American International Group will post 6.24 EPS for the current year.

American International Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 16th were issued a $0.45 dividend. The ex-dividend date was Tuesday, December 16th. This represents a $1.80 annualized dividend and a yield of 2.1%. American International Group’s dividend payout ratio (DPR) is currently 32.73%.

Hedge Funds Weigh In On American International Group

A number of institutional investors and hedge funds have recently modified their holdings of AIG. Westfuller Advisors LLC bought a new position in American International Group in the third quarter valued at about $26,000. Atlantic Union Bankshares Corp increased its position in shares of American International Group by 7,100.0% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 360 shares of the insurance provider’s stock valued at $28,000 after purchasing an additional 355 shares during the last quarter. Eastern Bank lifted its stake in shares of American International Group by 2,473.3% in the 3rd quarter. Eastern Bank now owns 386 shares of the insurance provider’s stock worth $30,000 after purchasing an additional 371 shares during the period. Twin Peaks Wealth Advisors LLC purchased a new position in shares of American International Group in the second quarter worth approximately $32,000. Finally, GFG Capital LLC purchased a new position in shares of American International Group in the second quarter worth approximately $33,000. 90.60% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Barclays cut American International Group from an “overweight” rating to an “equal weight” rating and dropped their price target for the stock from $95.00 to $88.00 in a research report on Friday, December 5th. Wolfe Research assumed coverage on American International Group in a report on Tuesday, September 16th. They issued a “peer perform” rating on the stock. Wall Street Zen downgraded American International Group from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Piper Sandler upped their price target on shares of American International Group from $88.00 to $95.00 and gave the stock an “overweight” rating in a research note on Monday, December 22nd. Finally, The Goldman Sachs Group cut their price objective on shares of American International Group from $84.00 to $81.00 and set a “neutral” rating on the stock in a research report on Monday, December 8th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and fourteen have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $89.28.

American International Group Company Profile

American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk.

The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time.