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

American International Group (NYSE:AIG) released its quarterly earnings results on Wednesday. The insurance provider reported $1.77 EPS for the quarter, beating the consensus estimate of $1.66 by $0.11, Briefing.com reports. American International Group had a net margin of 7.78% and a return on equity of 10.68%. The firm had revenue of $12.58 billion during the quarter, compared to the consensus estimate of $12.04 billion. During the same quarter in the prior year, the firm earned $1.63 EPS.

American International Group Stock Performance

Shares of AIG traded up $1.75 during midday trading on Thursday, hitting $77.56. 1,553,992 shares of the stock traded hands, compared to its average volume of 3,908,906. American International Group has a 1-year low of $48.95 and a 1-year high of $79.70. The firm has a market capitalization of $52.81 billion, a PE ratio of 15.63, a price-to-earnings-growth ratio of 1.08 and a beta of 1.02. 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’s 50 day moving average price is $75.10 and its two-hundred day moving average price is $69.30.

American International Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Thursday, March 14th were issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 1.86%. The ex-dividend date was Wednesday, March 13th. American International Group’s dividend payout ratio is presently 28.86%.

Insider Activity

In other news, 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, with a total value of $49,682.01. Following the completion of the acquisition, the director now owns 659 shares in the company, valued at approximately $49,682.01. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, Director John C. Inglis acquired 659 shares of the business’s stock in a transaction that occurred on Thursday, March 14th. The shares were acquired at an average cost of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the purchase, the director now directly owns 659 shares in the company, valued at $49,682.01. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Peter Zaffino sold 333,000 shares of American International Group 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 sale, the chief executive officer now owns 505,420 shares in the company, valued at $38,346,215.40. The disclosure for this sale can be found here. Corporate insiders own 0.61% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. JPMorgan Chase & Co. upped their price objective on shares of American International Group from $73.00 to $80.00 and gave the stock a “neutral” rating in a research report on Monday, April 8th. Wells Fargo & Company upped their price objective on shares of American International Group from $74.00 to $80.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 11th. BMO Capital Markets cut their price target on shares of American International Group from $83.00 to $81.00 and set an “outperform” rating for the company in a report on Thursday, February 15th. Evercore ISI increased their price target on shares of American International Group from $74.00 to $80.00 and gave the company an “in-line” rating in a report on Thursday, April 11th. Finally, Royal Bank of Canada increased their price target on shares of American International Group from $76.00 to $80.00 and gave the company an “outperform” rating in a report on Thursday, February 15th. Eight investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, American International Group presently has an average rating of “Moderate Buy” and an average price target of $80.38.

American International Group declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 1st that permits the company to buyback $10.00 billion in 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 usually an indication that the company’s board believes its stock is undervalued.

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.