American International Group Inc. (AIG) Stock Rating Lowered by Zacks Investment Research
American International Group Inc. (NYSE:AIG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday.
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%.”
A number of other research analysts also recently issued reports on the company. Atlantic Securities raised American International Group from a “neutral” rating to an “overweight” rating and set a $60.00 price target for the company in a report on Thursday, June 30th. They noted that the move was a valuation call. Vetr downgraded American International Group from a “strong-buy” rating to a “buy” rating and set a $58.24 price target for the company. in a report on Monday, July 11th. Barclays PLC boosted their price target on American International Group from $60.00 to $68.00 and gave the company an “overweight” rating in a report on Friday, September 30th. Deutsche Bank AG upped their target price on American International Group from $58.00 to $59.00 and gave the stock a “hold” rating in a research note on Wednesday, August 3rd. Finally, Citigroup Inc. reduced their target price on 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. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $65.10.
American International Group (NYSE:AIG) traded down 0.10% during midday trading on Thursday, reaching $59.84. 1,949,993 shares of the company were exchanged. The firm’s market capitalization is $64.07 billion. American International Group has a 52 week low of $48.41 and a 52 week high of $64.31. The company has a 50-day moving average of $58.90 and a 200 day moving average of $56.09.
American International Group (NYSE:AIG) last announced its quarterly earnings results on Tuesday, August 2nd. The insurance provider reported $0.98 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.93 by $0.05. American International Group had a positive return on equity of 1.33% and a negative net margin of 0.64%. During the same period in the prior year, the firm earned $1.39 earnings per share. Equities analysts predict that American International Group will post $4.04 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Thursday, September 29th. Shareholders of record on Thursday, September 15th were given a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 2.14%. The ex-dividend date was Tuesday, September 13th. American International Group’s dividend payout ratio is currently -799.95%.
Large investors have recently bought and sold shares of the stock. Standard Life Investments LTD raised its stake in American International Group by 0.7% in the second quarter. Standard Life Investments LTD now owns 4,559,523 shares of the insurance provider’s stock worth $241,085,000 after buying an additional 33,662 shares in the last quarter. Orbis Allan Gray Ltd acquired a new position in American International Group during the first quarter worth approximately $215,015,000. Nisa Investment Advisors LLC increased its position in American International Group by 2.4% in the second quarter. Nisa Investment Advisors LLC now owns 327,970 shares of the insurance provider’s stock worth $17,347,000 after buying an additional 7,592 shares during the last quarter. Capital Fund Management S.A. acquired a new position in American International Group during the second quarter worth approximately $17,713,000. Finally, Confluence Investment Management LLC increased its position in American International Group by 15.8% in the second quarter. Confluence Investment Management LLC now owns 815,898 shares of the insurance provider’s stock worth $43,153,000 after buying an additional 111,381 shares during the last quarter. 84.69% of the stock is currently owned by institutional investors.
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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