American International Group (NYSE:AIG) Shares Gap Up After Strong Earnings

Posted by on May 6th, 2023

American International Group, Inc. (NYSE:AIG – Get Rating) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $49.88, but opened at $54.17. American International Group shares last traded at $53.01, with a volume of 968,705 shares trading hands.

The insurance provider reported $1.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.43 by $0.20. American International Group had a net margin of 18.21% and a return on equity of 7.70%. The company had revenue of $10.98 billion for the quarter, compared to analyst estimates of $11.35 billion. During the same quarter in the previous year, the firm posted $1.30 earnings per share.

American International Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 30th. Investors of record on Friday, June 16th will be issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.68%. The ex-dividend date is Thursday, June 15th. This is a positive change from American International Group’s previous quarterly dividend of $0.32. American International Group’s dividend payout ratio is 10.02%.

Analyst Ratings Changes

A number of analysts recently weighed in on AIG shares. Evercore ISI decreased their target price on shares of American International Group from $70.00 to $63.00 and set an “in-line” rating on the stock in a report on Thursday, April 13th. Atlantic Securities lowered shares of American International Group from an “overweight” rating to a “neutral” rating and decreased their target price for the stock from $70.00 to $65.00 in a report on Wednesday, February 22nd. Barclays decreased their target price on shares of American International Group from $66.00 to $55.00 and set an “equal weight” rating on the stock in a report on Wednesday, April 12th. StockNews.com started coverage on shares of American International Group in a report on Thursday, March 16th. They issued a “hold” rating on the stock. Finally, Citigroup decreased their price target on shares of American International Group from $71.00 to $70.00 in a report on Tuesday, April 18th. Eight investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $65.79.

Institutional Investors Weigh In On American International Group

Institutional investors have recently made changes to their positions in the business. Accurate Wealth Management LLC purchased a new stake in shares of American International Group in the 4th quarter valued at $25,000. Arcus Capital Partners LLC purchased a new stake in American International Group during the 4th quarter valued at $25,000. U.S. Capital Wealth Advisors LLC purchased a new stake in American International Group during the 4th quarter valued at $28,000. Thompson Investment Management Inc. purchased a new stake in American International Group during the 1st quarter valued at $28,000. Finally, International Assets Investment Management LLC purchased a new stake in American International Group during the 4th quarter valued at $29,000. Hedge funds and other institutional investors own 89.01% of the company’s stock.

American International Group Stock Up 7.8 %

The firm has a market cap of $39.46 billion, a PE ratio of 4.21, a PEG ratio of 0.84 and a beta of 1.11. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.31 and a current ratio of 0.31. The company’s 50-day simple moving average is $52.23 and its two-hundred day simple moving average is $57.90.

About American International Group

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American International Group, Inc engages in the provision of a range of property casualty insurance, life insurance, retirement products, and other financial services to commercial and individual customers. It operates through the following segments: General Insurance, Life and Retirement and Other Operations.

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