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

American International Group (NYSE:AIG) released its quarterly earnings results 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. The firm had revenue of $12.58 billion for the quarter, compared to analysts’ expectations of $12.04 billion. American International Group had a net margin of 9.98% and a return on equity of 10.68%. During the same quarter last year, the company earned $1.63 EPS.

American International Group Stock Performance

American International Group stock opened at $78.48 on Friday. The firm has a 50 day simple moving average of $75.24 and a 200-day simple moving average of $69.36. The stock has a market cap of $53.44 billion, a price-to-earnings ratio of 11.71, a price-to-earnings-growth ratio of 1.09 and a beta of 1.02. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.31 and a quick ratio of 0.31. American International Group has a 1-year low of $48.95 and a 1-year high of $79.70.

American International Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, June 14th will be given a dividend of $0.40 per share. This is a boost from American International Group’s previous quarterly dividend of $0.36. This represents a $1.60 annualized dividend and a yield of 2.04%. The ex-dividend date of this dividend is Friday, June 14th. American International Group’s dividend payout ratio (DPR) is presently 21.49%.

Analyst Ratings Changes

AIG has been the topic of several research analyst reports. BMO Capital Markets dropped their target price 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. Wells Fargo & Company raised their price target on shares of American International Group from $74.00 to $80.00 and gave the company an “equal weight” rating in a research note on Thursday, April 11th. JPMorgan Chase & Co. increased their target price on American International Group from $73.00 to $80.00 and gave the company a “neutral” rating in a report on Monday, April 8th. Keefe, Bruyette & Woods lifted their price target on American International Group from $82.00 to $86.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 10th. Finally, Morgan Stanley boosted their price target on American International Group from $72.00 to $79.00 and gave the stock an “equal weight” rating in a research report on Monday, April 15th. Eight equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $80.44.

Insider Activity

In related news, CEO Peter Zaffino sold 333,000 shares of the company’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $75.87, for a total value of $25,264,710.00. Following the transaction, the chief executive officer now directly owns 505,420 shares in the company, valued at $38,346,215.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, Director John C. Inglis purchased 659 shares of the company’s stock in a transaction on Thursday, March 14th. The stock was acquired at an average cost of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the transaction, the director now directly owns 659 shares in the company, valued at $49,682.01. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Peter Zaffino sold 333,000 shares of the business’s stock in a transaction that occurred on 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 directly 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.

American International Group declared that its board has authorized a stock repurchase plan on Wednesday, May 1st that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the insurance provider to purchase up to 19.4% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its stock is 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.