Share Repurchase Program Authorized by American International Group (NYSE:AIG) Board of Directors

American International Group (NYSE:AIG) declared that its board has initiated a share repurchase plan on Wednesday, May 1st, RTT News reports. The company plans to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the insurance provider to repurchase up to 19.4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of analysts have weighed in on AIG shares. Bank of America downgraded shares of American International Group from a “buy” rating to a “neutral” rating and increased their price target for the company from $75.00 to $77.00 in a report on Tuesday, February 20th. BMO Capital Markets reduced their price objective 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. UBS Group raised their price objective on shares of American International Group from $83.00 to $84.00 and gave the stock a “buy” rating in a report on Thursday, February 22nd. Keefe, Bruyette & Woods raised their price objective on shares of American International Group from $82.00 to $86.00 and gave the stock an “outperform” rating in a report on Wednesday, April 10th. Finally, Morgan Stanley raised their price objective on shares of American International Group from $72.00 to $79.00 and gave the stock an “equal weight” rating in a report on Monday, April 15th. Eight research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $80.38.

American International Group Trading Up 0.7 %

Shares of American International Group stock opened at $75.83 on Thursday. The stock has a market capitalization of $51.64 billion, a P/E ratio of 15.20, a price-to-earnings-growth ratio of 1.09 and a beta of 1.03. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.44. The company has a 50-day simple moving average of $75.10 and a 200 day simple moving average of $69.30. American International Group has a 12-month low of $48.95 and a 12-month high of $78.95.

American International Group (NYSE:AIG) last announced its earnings results on Wednesday, February 14th. The insurance provider reported $1.79 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.59 by $0.20. The business had revenue of $1.00 million during the quarter, compared to analysts’ expectations of $11.61 billion. American International Group had a net margin of 7.78% and a return on equity of 10.68%. The firm’s revenue for the quarter was up .0% on a year-over-year basis. During the same quarter last year, the company posted $1.36 EPS. Research analysts expect that American International Group will post 6.95 earnings per share for the current fiscal year.

American International Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Thursday, March 14th were given a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 1.90%. The ex-dividend date was Wednesday, March 13th. American International Group’s payout ratio is presently 28.86%.

Insider Buying and Selling at American International Group

In other American International Group news, CEO Peter Zaffino sold 333,000 shares of the firm’s stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $75.87, for a total value of $25,264,710.00. Following the completion of the sale, the chief executive officer now owns 505,420 shares in the company, valued at approximately $38,346,215.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other American International Group news, CEO Peter Zaffino sold 333,000 shares of the firm’s stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $75.87, for a total value of $25,264,710.00. Following the completion of the sale, the chief executive officer now owns 505,420 shares in the company, valued at approximately $38,346,215.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John C. Inglis acquired 659 shares of the stock in a transaction on 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 transaction, the director now directly 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.

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.