American International Group Inc. (AIG) Rating Increased to Buy at 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 note issued to investors on Tuesday. The firm presently has a $66.00 price target on the insurance provider’s stock. Zacks Investment Research’s price target would indicate a potential upside of 12.02% from the company’s previous close.
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%.”
AIG has been the topic of a number of other research reports. Credit Suisse Group AG set a $60.00 price objective on shares of American International Group and gave the stock a “hold” rating in a research note on Monday, September 12th. Vetr lowered shares of American International Group from a “strong-buy” rating to a “buy” rating and set a $59.24 price target on the stock. in a research report on Wednesday, June 22nd. Deutsche Bank AG raised their price target on shares of American International Group from $58.00 to $59.00 and gave the company a “hold” rating in a research report on Wednesday, August 3rd. Atlantic Securities upgraded shares of American International Group from a “neutral” rating to an “overweight” rating and set a $60.00 price target on the stock in a research report on Thursday, June 30th. They noted that the move was a valuation call. Finally, Barclays PLC raised their price target on shares of American International Group from $60.00 to $68.00 and gave the company an “overweight” rating in a research report on Friday. Two analysts have rated the stock with a sell rating, nine have given a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus price target of $65.10.
Shares of American International Group (NYSE:AIG) traded up 0.10% during mid-day trading on Tuesday, reaching $58.98. 3,158,888 shares of the company’s stock traded hands. American International Group has a 12-month low of $48.41 and a 12-month high of $64.31. The company’s market cap is $63.15 billion. The company’s 50 day moving average is $58.89 and its 200 day moving average is $56.03.
American International Group (NYSE:AIG) last released its quarterly earnings data on Tuesday, August 2nd. The insurance provider reported $0.98 earnings per share for the quarter, topping the Zacks’ 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 period last year, the company earned $1.39 EPS. On average, analysts predict that American International Group will post $4.04 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 29th. Investors of record on Thursday, September 15th were issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.17%. The ex-dividend date was Tuesday, September 13th. American International Group’s dividend payout ratio (DPR) is currently -799.95%.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Capital Research Global Investors boosted its position in shares of American International Group by 23.7% in the second quarter. Capital Research Global Investors now owns 69,710,055 shares of the insurance provider’s stock worth $3,686,965,000 after buying an additional 13,367,970 shares during the period. Cohen & Steers Inc. boosted its position in American International Group by 4,949.7% in the second quarter. Cohen & Steers Inc. now owns 8,603,093 shares of the insurance provider’s stock valued at $454,846,000 after buying an additional 8,432,725 shares during the period. Orbis Allan Gray Ltd purchased a new position in American International Group during the first quarter valued at approximately $215,015,000. Emerald Acquisition Ltd. purchased a new position in American International Group during the second quarter valued at approximately $143,219,000. Finally, Renaissance Technologies LLC purchased a new position in American International Group during the first quarter valued at approximately $88,434,000. Hedge funds and other institutional investors own 84.69% of the company’s stock.
About American International Group
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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