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

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

American International Group Stock Performance

AIG stock traded up $1.70 during midday trading on Thursday, reaching $77.51. The stock had a trading volume of 2,004,324 shares, compared to its average volume of 3,913,255. The stock has a market cap of $52.78 billion, a PE ratio of 15.63, a P/E/G 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 firm has a fifty day simple moving average of $75.10 and a two-hundred day simple moving average of $69.30. American International Group has a 52-week low of $48.95 and a 52-week high of $79.70.

American International Group Dividend Announcement

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

American International Group declared that its Board of Directors has initiated a share buyback program on Wednesday, May 1st that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the insurance provider to reacquire up to 19.4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

AIG has been the topic of several research analyst reports. BMO Capital Markets dropped their price objective on American International Group from $83.00 to $81.00 and set an “outperform” rating on the stock in a research note on Thursday, February 15th. TD Cowen started coverage on American International Group in a research report on Wednesday, January 10th. They set a “market perform” rating and a $78.00 target price on the stock. Wells Fargo & Company increased their target price on American International Group from $74.00 to $80.00 and gave the company an “equal weight” rating in a research report on Thursday, April 11th. Keefe, Bruyette & Woods increased their target price on American International Group from $82.00 to $86.00 and gave the company an “outperform” rating in a research report on Wednesday, April 10th. Finally, Evercore ISI increased their target price on American International Group from $74.00 to $80.00 and gave the company an “in-line” rating in a research report on Thursday, April 11th. Eight research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $80.38.

Insider Buying and Selling

In other news, Director John C. Inglis bought 659 shares of American International Group stock in a transaction that occurred on Thursday, March 14th. The stock was bought at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the purchase, the director now directly owns 659 shares of the company’s stock, valued at approximately $49,682.01. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, Director John C. Inglis bought 659 shares of American International Group stock in a transaction that occurred on Thursday, March 14th. The stock was bought at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the purchase, the director now directly owns 659 shares of the company’s stock, valued at approximately $49,682.01. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 value of $25,264,710.00. Following the transaction, the chief executive officer now owns 505,420 shares of the company’s stock, valued at approximately $38,346,215.40. The disclosure for this sale can be found here. 0.61% of the stock is currently owned by company insiders.

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.