American International Group (AIG) recently received a target price boost from investment analysts at Morgan Stanley, with the figure rising from $62.00 to $65.00. In a research note issued to investors on October 11, 2023, Morgan Stanley also reiterated its “equal weight” rating for AIG’s stock. According to Morgan Stanley’s price objective, there is a potential upside of 5.91% from the stock’s previous close.
On that Wednesday, NYSE AIG traded up $0.20 and reached $61.37 during trading hours. The company’s stock had a trading volume of 349,283 shares, which is lower than its average volume of 4,088,719 shares. Looking at AIG’s performance over the past year, its shares have ranged between a low of $45.66 and a high of $64.88.
With a market capitalization of $43.69 billion and various financial indicators to analyze, investors can gain insight into AIG’s current standing within the insurance industry. The firm boasts a price-to-earnings ratio of 10.38 and a price-to-earnings-growth ratio of 0.91 – both figures offering valuable information about the company’s valuation compared to its earnings and growth potential.
A quick analysis of the firm’s liquidity reveals that it has a quick ratio and current ratio both standing at 0.29 – indicating that AIG may face challenges in meeting short-term obligations if they arise unexpectedly in the near future. Nevertheless, it appears that AIG has managed its debt effectively thus far with relatively low leverage as reflected by its debt-to-equity ratio of 0.06.
Turning to investor activity surrounding the stock, several institutional investors have recently made moves regarding their positions in American International Group shares: Thompson Investment Management Inc., Avalon Trust Co., Creative Capital Management Investments LLC, Glassman Wealth Services, and North Star Investment Management Corp. have all bought stakes in the company.
In terms of AIG’s financial performance, the insurance provider announced its quarterly earnings data on August 2nd, 2023. During that quarter, AIG reported earnings per share of $1.75, surpassing consensus estimates by $0.21. The firm achieved revenue of $13.22 billion for the period, outperforming analyst predictions of $12.28 billion. It is worth noting that AIG’s return on equity was 9.28%, highlighting its ability to generate profits from shareholder investments.
Looking ahead, equities research analysts anticipate that American International Group will report earnings per share of 6.73 for the current fiscal year.
With this information in mind, investors may consider Morgan Stanley’s upgraded target price for AIG as they evaluate potential opportunities within the insurance industry. However, it is important to conduct further analysis and due diligence before making any investment decisions or altering existing positions based solely on this report.
Mixed Analyst Ratings and Insider Selling Plague American International Group Amidst Market Uncertainty
American International Group Receives Mixed Analyst Ratings and Insider Selling Amidst Market Uncertainty
Date: October 11, 2023
American International Group (AIG) has recently been the focus of several research reports, depicting a combination of positive and negative sentiment amongst analysts. Additionally, a significant insider selling activity has taken place within the company. Analyzing these developments provides insight into the current state of affairs for AIG.
Multiple investment firms have shared their assessments on AIG’s stock performance. BMO Capital Markets, for instance, revised their target price from $69.00 to $68.00 and assigned a “market perform” rating to the stock in an insightful research report published on Tuesday. Similarly, Deutsche Bank Aktiengesellschaft initiated coverage on AIG with a “buy” rating and set a price target of $79.00 per share on October 4th.
In contrast, TheStreet upgraded their rating on AIG from a “c+” to a “b-” back in June 2023. On October 5th, StockNews.com entered the conversation by initiating coverage with a “hold” rating on AIG shares. Furthermore, Royal Bank of Canada reaffirmed its existing “outperform” rating with a target price of $70.00 per share on October 3rd.
With nine analysts assigning hold ratings and five giving buy ratings to AIG’s stock, data from Bloomberg reveals that it carries an average rating of “Hold.” The consensus target price for AIG stands at $68.07 based on analysts’ assessments.
Adding further complexity to this mix of reports is the insider selling activity that recently occurred within AIG. Kathleen Carbone, Chief Accounting Officer (CAO), reportedly sold 7,757 shares on August 9th at an average price of $61.30 per share—an overall transaction value of $475,504.10. The Securities & Exchange Commission filing provides this information, further emphasizing the action taken by an insider. Currently, insiders hold 0.49% of AIG’s stock.
These divergent ratings from analysts and insider selling raise questions about the future performance of AIG amidst current market uncertainties. Investors would benefit from considering these factors if they are contemplating investment decisions relating to AIG.
It is crucial to note that this article presents a snapshot of the situation as of October 11, 2023. Market conditions are subject to change, and investors should exercise caution and conduct thorough research before proceeding with any investment in AIG or any other company.