Zacks Investment Research Lowers American International Group, Inc. (AIG) to Sell
American International Group, Inc. (NYSE:AIG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “AIG's shares have underperformed the industry year to date. Its weak commercial lines business remains a drag. Adverse reserve development and exposure to catastrophe are the other headwinds. Decling topline is another major concern. Regulators have removed the company from SIFI tag which brings geater capital flexibility to the company. Several turnaround measures undertaken by the company like strategic divestitures, asset sales, increasing share buybacks, dividend hikes, personnel changes, cost control, reinsurance deals, and lowering of hedge fund investments are expected to deliver strong earnings by curbing volatility. Though some of these efforts have paid off, many more reforms are required for a turnaround.”
Several other analysts also recently commented on the stock. Royal Bank Of Canada reissued a “buy” rating and issued a $73.00 target price on shares of American International Group in a research report on Wednesday, September 6th. Wells Fargo & Company reissued a “buy” rating on shares of American International Group in a research report on Wednesday, July 5th. BidaskClub raised shares of American International Group from a “hold” rating to a “buy” rating in a research report on Monday, August 7th. Keefe, Bruyette & Woods reissued a “buy” rating and issued a $75.00 target price on shares of American International Group in a research report on Thursday, August 3rd. Finally, Bank of America Corporation decreased their target price on shares of American International Group from $71.00 to $69.00 and set a “buy” rating for the company in a research report on Tuesday, October 10th. Four analysts have rated the stock with a sell rating, five have given a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. American International Group currently has a consensus rating of “Hold” and a consensus target price of $68.18.
Shares of American International Group (AIG) traded down 0.53% during trading on Tuesday, hitting $63.64. 3,630,577 shares of the stock were exchanged. American International Group has a 12-month low of $57.35 and a 12-month high of $67.47. The stock’s 50 day moving average is $60.80 and its 200-day moving average is $62.23. The stock’s market cap is $57.49 billion.
American International Group (NYSE:AIG) last announced its quarterly earnings data on Wednesday, August 2nd. The insurance provider reported $1.53 EPS for the quarter, beating the Zacks’ consensus estimate of $1.20 by $0.33. American International Group had a negative net margin of 0.53% and a positive return on equity of 6.06%. The firm had revenue of $11.23 billion for the quarter, compared to the consensus estimate of $12.61 billion. During the same period in the previous year, the firm posted $0.98 earnings per share. Equities research analysts anticipate that American International Group will post $3.48 EPS for the current year.
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A number of large investors have recently added to or reduced their stakes in AIG. Waldron LP acquired a new position in American International Group during the 1st quarter valued at $208,000. Israel Discount Bank of New York acquired a new position in American International Group during the 1st quarter valued at $145,000. FDO Partners LLC acquired a new position in American International Group during the 1st quarter valued at $774,000. Legal & General Group Plc raised its stake in American International Group by 1.1% during the 1st quarter. Legal & General Group Plc now owns 5,371,867 shares of the insurance provider’s stock valued at $335,356,000 after purchasing an additional 57,104 shares during the last quarter. Finally, Mirador Capital Partners LP raised its stake in American International Group by 10.8% during the 1st quarter. Mirador Capital Partners LP now owns 31,923 shares of the insurance provider’s stock valued at $1,993,000 after purchasing an additional 3,106 shares during the last quarter. Hedge funds and other institutional investors own 83.96% of the company’s stock.
About American International Group
American International Group, Inc is a global insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers. Its segments include Commercial Insurance, Consumer Insurance, Other Operations and Legacy Portfolio.
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