American International Group Inc. (AIG) Upgraded to “Buy” by Zacks Investment Research
American International Group Inc. (NYSE:AIG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The brokerage currently has a $66.00 price objective on the insurance provider’s stock. Zacks Investment Research’s target price suggests a potential upside of 9.89% from the stock’s current price.
According to Zacks, “American International Group is undergoing a strategic transformation to regain its lost glory. A number of strategic measures, such as sale of units generating low returns, reduction of expenses, lowering hedge fund allocation are being taken. It also aims to boost shareholders’ value via share buyback and dividend increase. The company, however, continues to suffer from intense competition, litigation damages, volatility in interest rates and currency fluctuations which further pose financial and operating risks. Also, management estimates net premiums written in 2016 to be lower due to increase in reinsurance usage and exit from unprofitable businesses. The company is expected to release third quarter 2016 earnings on Nov 11, 2016. The Zacks Consensus earning estimate for the quarter is pegged at $1.15 per share which translates into year over year growth rate of 121.9%.”
Other equities research analysts also recently issued reports about the stock. Vetr downgraded shares of American International Group from a “strong-buy” rating to a “buy” rating and set a $58.24 price objective for the company. in a research note on Monday, July 11th. Citigroup Inc. lowered their price objective on shares of American International Group from $69.00 to $66.00 and set a “buy” rating for the company in a research note on Thursday, July 7th. Evercore ISI started coverage on shares of American International Group in a research note on Wednesday, July 6th. They set a “buy” rating and a $62.00 price objective for the company. Wells Fargo & Co. reiterated a “buy” rating on shares of American International Group in a research note on Tuesday, June 28th. Finally, Bank of America Corp. reiterated a “buy” rating on shares of American International Group in a research note on Thursday, June 30th. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the company’s stock. American International Group presently has a consensus rating of “Buy” and a consensus target price of $65.10.
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Shares of American International Group (NYSE:AIG) opened at 60.06 on Tuesday. American International Group has a 52 week low of $48.41 and a 52 week high of $64.31. The stock’s market cap is $64.30 billion. The firm has a 50-day moving average price of $58.96 and a 200-day moving average price of $56.17.
American International Group (NYSE:AIG) last posted its quarterly earnings data on Tuesday, August 2nd. The insurance provider reported $0.98 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.93 by $0.05. American International Group had a negative net margin of 0.64% and a positive return on equity of 1.33%. During the same quarter in the prior year, the company earned $1.39 earnings per share. On average, equities analysts anticipate that American International Group will post $4.05 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 29th. Stockholders of record on Thursday, September 15th were issued a $0.32 dividend. The ex-dividend date of this dividend was Tuesday, September 13th. This represents a $1.28 annualized dividend and a dividend yield of 2.13%. American International Group’s dividend payout ratio is currently -799.95%.
Several institutional investors have recently modified their holdings of the company. Nuveen Asset Management LLC raised its position in shares of American International Group by 89.2% in the first quarter. Nuveen Asset Management LLC now owns 227,904 shares of the insurance provider’s stock valued at $12,318,000 after buying an additional 107,421 shares in the last quarter. Renaissance Technologies LLC bought a new position in shares of American International Group during the first quarter valued at approximately $88,434,000. Reynolds Capital Management LLC bought a new position in shares of American International Group during the first quarter valued at approximately $281,000. HBK Investments L P raised its position in shares of American International Group by 50.1% in the first quarter. HBK Investments L P now owns 91,821 shares of the insurance provider’s stock valued at $4,963,000 after buying an additional 30,642 shares in the last quarter. Finally, University of Notre Dame DU Lac raised its position in shares of American International Group by 47.9% in the first quarter. University of Notre Dame DU Lac now owns 50,783 shares of the insurance provider’s stock valued at $2,745,000 after buying an additional 16,439 shares in the last quarter. Hedge funds and other institutional investors own 84.69% of the company’s stock.
American International Group Company Profile
American International Group, Inc (AIG) is an insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in over 100 countries and jurisdictions. The Company operates through two segments: Commercial Insurance and Consumer Insurance, as well as a Corporate and Other category.
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