Morgan Stanley Lowers American International Group (NYSE:AIG) Price Target to $80.00

American International Group (NYSE:AIG) had its target price lowered by investment analysts at Morgan Stanley from $82.00 to $80.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has an “equal weight” rating on the insurance provider’s stock. Morgan Stanley’s price target would suggest a potential upside of 5.75% from the company’s current price.

A number of other analysts have also issued reports on the company. Evercore ISI decreased their price target on American International Group from $81.00 to $78.00 and set an “in-line” rating on the stock in a research note on Thursday, June 27th. Keefe, Bruyette & Woods restated an “outperform” rating and issued a $87.00 price objective on shares of American International Group in a report on Thursday, June 27th. Royal Bank of Canada reiterated an “outperform” rating and set a $87.00 target price on shares of American International Group in a report on Tuesday. Citigroup raised their target price on American International Group from $79.00 to $87.00 and gave the company a “buy” rating in a report on Tuesday, April 16th. Finally, HSBC downgraded American International Group from a “buy” rating to a “hold” rating and set a $86.00 target price on the stock. in a report on Wednesday, May 15th. Nine analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $81.88.

American International Group Price Performance

Shares of AIG traded down $0.10 during trading hours on Wednesday, reaching $75.65. 1,289,893 shares of the company traded hands, compared to its average volume of 4,119,860. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $50.21 billion, a PE ratio of 11.31, a price-to-earnings-growth ratio of 2.06 and a beta of 1.08. American International Group has a fifty-two week low of $57.02 and a fifty-two week high of $80.83. The stock has a fifty day simple moving average of $76.74 and a 200 day simple moving average of $73.71.

American International Group (NYSE:AIG) last issued its quarterly earnings results on Thursday, May 2nd. The insurance provider reported $1.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $12.58 billion for the quarter, compared to analyst estimates of $12.04 billion. During the same period last year, the company earned $1.63 EPS. As a group, research analysts predict that American International Group will post 7.02 EPS for the current fiscal year.

American International Group declared that its board has initiated a share buyback plan on Wednesday, May 1st that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the insurance provider to reacquire up to 19.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at American International Group

In related 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 approximately $8,534,313,988.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.61% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Whittier Trust Co. of Nevada Inc. raised its stake in American International Group by 5.3% during the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 2,691 shares of the insurance provider’s stock valued at $210,000 after acquiring an additional 136 shares in the last quarter. Quent Capital LLC raised its stake in American International Group by 4.0% during the 2nd quarter. Quent Capital LLC now owns 3,834 shares of the insurance provider’s stock valued at $285,000 after acquiring an additional 146 shares in the last quarter. Sage Mountain Advisors LLC raised its stake in American International Group by 2.3% during the 1st quarter. Sage Mountain Advisors LLC now owns 6,700 shares of the insurance provider’s stock valued at $524,000 after acquiring an additional 148 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund raised its stake in American International Group by 0.6% during the 4th quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 25,011 shares of the insurance provider’s stock valued at $1,694,000 after acquiring an additional 154 shares in the last quarter. Finally, Cary Street Partners Investment Advisory LLC raised its stake in American International Group by 0.9% during the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 18,553 shares of the insurance provider’s stock valued at $1,257,000 after acquiring an additional 157 shares in the last quarter. Institutional investors and hedge funds own 90.60% of the company’s stock.

About American International Group

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.