Vanguard Group Inc. Reduces Stake in American International Group, Inc. (NYSE:AIG)

Vanguard Group Inc. reduced its position in American International Group, Inc. (NYSE:AIG) by 2.1% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 70,425,371 shares of the insurance provider’s stock after selling 1,536,803 shares during the period. Vanguard Group Inc. owned approximately 10.61% of American International Group worth $5,505,151,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Jupiter Asset Management Ltd. lifted its position in American International Group by 48.7% during the first quarter. Jupiter Asset Management Ltd. now owns 385,586 shares of the insurance provider’s stock valued at $30,141,000 after purchasing an additional 126,333 shares in the last quarter. Motco purchased a new position in American International Group during the first quarter valued at $63,000. ProVise Management Group LLC purchased a new position in American International Group during the first quarter valued at $224,000. Blair William & Co. IL lifted its position in American International Group by 4.8% during the first quarter. Blair William & Co. IL now owns 26,753 shares of the insurance provider’s stock valued at $2,091,000 after purchasing an additional 1,222 shares in the last quarter. Finally, Picton Mahoney Asset Management purchased a new position in American International Group during the first quarter valued at $78,000. 90.60% of the stock is currently owned by hedge funds and other institutional investors.

American International Group Trading Down 4.7 %

Shares of NYSE:AIG traded down $3.64 during trading hours on Friday, hitting $74.42. 7,045,217 shares of the company’s stock traded hands, compared to its average volume of 4,759,015. American International Group, Inc. has a 1 year low of $57.02 and a 1 year high of $80.83. The business has a fifty day moving average price of $76.43 and a 200-day moving average price of $74.20. The firm has a market capitalization of $49.39 billion, a P/E ratio of 11.11, a price-to-earnings-growth ratio of 2.41 and a beta of 1.08. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.29 and a quick ratio of 0.29.

American International Group (NYSE:AIG) last announced its earnings results on Thursday, May 2nd. The insurance provider reported $1.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.11. American International Group had a return on equity of 10.54% and a net margin of 9.98%. The business had revenue of $12.58 billion during the quarter, compared to analyst estimates of $12.04 billion. During the same quarter in the previous year, the business earned $1.63 earnings per share. Equities analysts expect that American International Group, Inc. will post 6.45 earnings per share for the current year.

American International Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 28th. Shareholders of record on Friday, June 14th were given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.15%. The ex-dividend date of this dividend was Friday, June 14th. This is a positive change from American International Group’s previous quarterly dividend of $0.36. American International Group’s payout ratio is 23.88%.

American International Group announced that its Board of Directors has initiated a share repurchase plan on Wednesday, May 1st that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the insurance provider to buy up to 19.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on AIG. Citigroup lifted their target price on American International Group from $79.00 to $87.00 and gave the company a “buy” rating in a research report on Tuesday, April 16th. Morgan Stanley decreased their price target on American International Group from $82.00 to $80.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 10th. HSBC cut American International Group from a “buy” rating to a “hold” rating and set a $86.00 price target on the stock. in a report on Wednesday, May 15th. Wells Fargo & Company raised their price target on American International Group from $80.00 to $82.00 and gave the company an “equal weight” rating in a report on Friday, May 10th. Finally, Keefe, Bruyette & Woods reissued an “outperform” rating and set a $87.00 price target on shares of American International Group in a report on Thursday, June 27th. Nine equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to data from MarketBeat, American International Group presently has an average rating of “Hold” and an average price target of $82.50.

Insider Buying and Selling at American International Group

In other American International Group news, major shareholder International Group American sold 1,932,609 shares of the business’s stock in a transaction that occurred on Tuesday, July 2nd. The stock was sold at an average price of $29.20, for a total transaction of $56,432,182.80. Following the completion of the transaction, the insider now owns 292,271,027 shares in the company, valued at $8,534,313,988.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.61% of the company’s stock.

American International Group Profile

American International Group, Inc offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products; and professional liability insurance.