American International Group (NYSE:AIG) to Buyback $10.00 billion in Outstanding Shares

American International Group (NYSE:AIG) declared that its Board of Directors has approved a stock repurchase program on Wednesday, May 1st, RTT News reports. The company plans to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the insurance provider to repurchase up to 19.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms recently weighed in on AIG. Piper Sandler lifted their target price on shares of American International Group from $87.00 to $89.00 and gave the company an “overweight” rating in a report on Friday, April 19th. TD Cowen started coverage on American International Group in a research note on Wednesday, January 10th. They issued a “market perform” rating and a $78.00 price objective for the company. Keefe, Bruyette & Woods raised their target price on American International Group from $82.00 to $86.00 and gave the company an “outperform” rating in a report on Wednesday, April 10th. Morgan Stanley lifted their target price on American International Group from $72.00 to $79.00 and gave the company an “equal weight” rating in a research report on Monday, April 15th. Finally, Royal Bank of Canada increased their price target on shares of American International Group from $76.00 to $80.00 and gave the stock an “outperform” rating in a research report on Thursday, February 15th. Eight research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $80.44.

American International Group Trading Up 0.5 %

NYSE AIG opened at $78.48 on Friday. The firm’s fifty day moving average price is $75.24 and its 200 day moving average price is $69.36. The company has a market capitalization of $53.44 billion, a price-to-earnings ratio of 11.71, a price-to-earnings-growth ratio of 1.09 and a beta of 1.02. American International Group has a 12 month low of $48.95 and a 12 month high of $79.70. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.31 and a quick ratio of 0.31.

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 analysts’ consensus estimates of $1.66 by $0.11. The firm had revenue of $12.58 billion during the quarter, compared to analysts’ expectations of $12.04 billion. American International Group had a return on equity of 10.68% and a net margin of 9.98%. During the same period in the prior year, the firm earned $1.63 EPS. On average, sell-side analysts expect that American International Group will post 6.95 earnings per share for the current fiscal year.

American International Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Friday, June 14th will be issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.04%. This is a boost from American International Group’s previous quarterly dividend of $0.36. The ex-dividend date of this dividend is Friday, June 14th. American International Group’s payout ratio is presently 21.49%.

Insider Activity at American International Group

In other news, CEO Peter Zaffino sold 333,000 shares of the stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $75.87, for a total transaction of $25,264,710.00. Following the completion of the sale, the chief executive officer now owns 505,420 shares in the company, valued at $38,346,215.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other news, CEO Peter Zaffino sold 333,000 shares of American International Group stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $75.87, for a total value of $25,264,710.00. Following the sale, the chief executive officer now owns 505,420 shares of the company’s stock, valued at $38,346,215.40. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director John C. Inglis purchased 659 shares of the business’s stock in a transaction that occurred on Thursday, March 14th. The shares were purchased at an average cost of $75.39 per share, with a total value of $49,682.01. Following the completion of the acquisition, the director now directly owns 659 shares of the company’s stock, valued at $49,682.01. The disclosure for this purchase can be found here. 0.61% of the stock is owned by insiders.

American International Group Company 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.