American International Group (NYSE:AIG) Announces Quarterly Earnings Results

American International Group (NYSE:AIG) announced its quarterly earnings results on Thursday. The insurance provider reported $2.00 earnings per share for the quarter, beating analysts’ consensus estimates of $1.92 by $0.08, Zacks reports. The firm had revenue of $7.08 billion for the quarter, compared to analyst estimates of $7.25 billion. American International Group had a net margin of 11.13% and a return on equity of 11.03%. During the same quarter in the previous year, the firm posted $1.81 earnings per share.

American International Group Stock Down 1.5%

Shares of NYSE:AIG traded down $1.18 during midday trading on Friday, hitting $78.80. The stock had a trading volume of 4,674,339 shares, compared to its average volume of 3,238,520. The company has a market cap of $41.78 billion, a P/E ratio of 14.40, a PEG ratio of 0.73 and a beta of 0.53. American International Group has a 12 month low of $71.25 and a 12 month high of $87.29. The business’s 50-day simple moving average is $77.28 and its 200-day simple moving average is $76.74. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.23.

American International Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Wednesday, September 16th. American International Group’s dividend payout ratio is presently 35.27%.

Institutional Trading of American International Group

Large investors have recently added to or reduced their stakes in the company. Mcguire Capital Advisors Inc. acquired a new position in shares of American International Group during the 4th quarter worth about $29,000. Jessup Wealth Management Inc bought a new position in American International Group during the fourth quarter worth about $40,000. JPL Wealth Management LLC acquired a new position in American International Group during the third quarter worth approximately $39,000. Atlas Capital Advisors Inc. acquired a new position in American International Group during the fourth quarter worth approximately $50,000. Finally, DV Equities LLC bought a new stake in American International Group in the fourth quarter valued at approximately $65,000. Institutional investors and hedge funds own 90.60% of the company’s stock.

Analyst Upgrades and Downgrades

AIG has been the topic of several research reports. Weiss Ratings raised shares of American International Group from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 2nd. Cantor Fitzgerald upgraded American International Group from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $85.00 to $92.00 in a report on Thursday, July 9th. Mizuho lifted their price target on American International Group from $86.00 to $89.00 and gave the company a “neutral” rating in a research note on Thursday, July 9th. BMO Capital Markets upped their price objective on American International Group from $83.00 to $89.00 in a research report on Thursday, May 7th. Finally, HSBC dropped their target price on American International Group from $94.00 to $88.00 and set a “buy” rating on the stock in a research report on Monday, July 6th. Seven equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $88.28.

American International Group News Roundup

Here are the key news stories impacting American International Group this week:

• Positive Sentiment: Second-quarter earnings exceeded expectations. AIG reported adjusted earnings of $2.00 per share, up from $1.81 a year earlier and ahead of consensus estimates ranging from $1.89 to $1.92. Strong underwriting income and lower catastrophe losses were key drivers. AIG Beats Q2 Earnings Estimates on Robust Underwriting Income
• Positive Sentiment: Premium growth was broad-based. Net premiums written increased across all three of AIG’s business lines, reinforcing management’s view that organic growth and recent strategic transactions are strengthening the company’s diversified insurance platform. AIG Q2 earnings beat as NPW grows across all three lines
• Positive Sentiment: AIG declared a quarterly dividend of $0.50 per share. The dividend is payable September 30 to shareholders of record on September 16, implying $2.00 in annualized payments and a yield of approximately 2.5% based on the referenced share price.
• Neutral Sentiment: Barclays raised its price target modestly to $81 from $80 while maintaining an “equal weight” rating. The revised target suggests limited near-term upside and does not represent a strong bullish endorsement.
• Negative Sentiment: Revenue fell short of expectations. Quarterly revenue was approximately $7.08 billion, below the $7.25 billion consensus forecast. Weaker investment income partly offset the improvement in underwriting results, giving investors a reason to temper their reaction to the earnings beat. AIG quarterly earnings report

About American International Group

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.