AIG Price Target Increased to $96 as Analysts Remain Optimistic

American International Group (NYSE: AIG) has seen its price target raised from $91.00 to $96.00 by Keefe, Bruyette & Woods, according to a research note released on Tuesday. The brokerage holds an “outperform” rating on the insurance provider’s stock, reflecting a positive outlook amid a competitive market.

The adjustment comes as several other analysts have also revised their positions on AIG. Bank of America increased its target price from $88.00 to $94.00, maintaining a “neutral” rating in a report dated October 13. Similarly, Piper Sandler raised its price target from $88.00 to $95.00, assigning an “overweight” rating. Mizuho initiated coverage with a “neutral” rating and a price objective of $84.00, while Goldman Sachs Group lowered its target from $84.00 to $81.00, also maintaining a “neutral” rating. Cantor Fitzgerald reiterated a “neutral” outlook on December 11.

The consensus among analysts is notably varied, with two providing a Strong Buy rating, seven issuing a Buy rating, and fourteen categorizing the stock as a Hold. According to data from MarketBeat, AIG currently has a consensus rating of “Hold” and an average target price of $89.17.

Recent Earnings and Dividend Announcements

AIG recently reported its earnings results for the third quarter on November 5, revealing earnings per share (EPS) of $2.20. This figure surpassed the consensus estimate of $1.57 by $0.63. The company posted a net margin of 11.89% and a return on equity of 9.09%. Revenue for the quarter reached $6.35 billion, although this was below analysts’ estimates of $6.82 billion. AIG had earned $1.23 EPS during the same period last year. Analysts forecast an EPS of $6.24 for the current fiscal year.

In addition to its earnings report, AIG declared a quarterly dividend of $0.45 per share, which was paid on December 30. Shareholders of record on December 16 received this dividend, resulting in an annualized yield of 2.3%. The company’s dividend payout ratio stands at 32.73%.

Institutional Investor Activity

Recent trading activity among institutional investors indicates increased interest in AIG. Westfuller Advisors LLC established a new position in the third quarter valued at $26,000. Atlantic Union Bankshares Corp significantly increased its stake by 7,100.0% during the same period, now owning 360 shares valued at $28,000 after acquiring an additional 355 shares. Eastern Bank raised its holdings by 2,473.3%, owning 386 shares worth $30,000 after purchasing an additional 371 shares.

Additionally, Twin Peaks Wealth Advisors LLC and GFG Capital LLC acquired new positions in AIG, valued at approximately $32,000 and $33,000, respectively. Notably, institutional investors now control 90.60% of AIG’s stock.

American International Group, Inc. is a global insurance holding company providing a wide array of property-casualty insurance products, specialty insurance, and risk management solutions. With a long-standing history in life insurance and asset management, AIG continues to adapt and evolve within the industry.

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