Zacks Investment Research Lowers American International Group, Inc. (AIG) to Sell

American International Group, Inc. (NYSE:AIG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.

According to Zacks, “AIG's shares have underperformed the industry year to date. Its weak commercial lines business remains a drag. Adverse reserve development and exposure to catastrophe are the other headwinds. Decling topline is another major concern. Regulators have removed the company from SIFI tag which brings geater capital flexibility to the company. Several turnaround measures undertaken by the company like strategic divestitures, asset sales, increasing share buybacks, dividend hikes, personnel changes, cost control, reinsurance deals, and lowering of hedge fund investments are expected to deliver strong earnings by curbing volatility. Though some of these efforts have paid off, many more reforms are required for a turnaround.”

AIG has been the subject of several other research reports. Wells Fargo & Company restated a “buy” rating and issued a $75.00 price objective on shares of American International Group in a report on Sunday, October 1st. Buckingham Research assumed coverage on American International Group in a report on Monday, September 11th. They issued an “underperform” rating and a $52.00 price objective for the company. Deutsche Bank AG restated a “sell” rating and issued a $60.00 price objective (up previously from $57.00) on shares of American International Group in a report on Wednesday, August 9th. ValuEngine cut American International Group from a “buy” rating to a “hold” rating in a report on Wednesday, October 11th. Finally, UBS AG decreased their price objective on American International Group from $65.00 to $64.00 and set a “neutral” rating for the company in a report on Tuesday, September 19th. Four research analysts have rated the stock with a sell rating, five have assigned a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $68.18.

American International Group (NYSE:AIG) traded up 0.36% during mid-day trading on Monday, hitting $64.78. The stock had a trading volume of 4,025,472 shares. American International Group has a 52 week low of $57.35 and a 52 week high of $67.47. The company’s market capitalization is $58.52 billion. The stock’s 50-day moving average is $62.03 and its 200 day moving average is $62.41.

American International Group (NYSE:AIG) last announced its quarterly earnings data on Wednesday, August 2nd. The insurance provider reported $1.53 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.20 by $0.33. The company had revenue of $11.23 billion during the quarter, compared to analysts’ expectations of $12.61 billion. American International Group had a positive return on equity of 6.06% and a negative net margin of 0.53%. During the same quarter last year, the company earned $0.98 EPS. Equities analysts forecast that American International Group will post $3.39 earnings per share for the current fiscal year.

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Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brightworth acquired a new stake in shares of American International Group in the third quarter valued at approximately $224,000. Westpac Banking Corp raised its position in shares of American International Group by 2.2% in the third quarter. Westpac Banking Corp now owns 78,238 shares of the insurance provider’s stock valued at $4,803,000 after buying an additional 1,710 shares in the last quarter. Beech Hill Advisors Inc. raised its position in shares of American International Group by 7.5% in the third quarter. Beech Hill Advisors Inc. now owns 57,465 shares of the insurance provider’s stock valued at $3,528,000 after buying an additional 4,000 shares in the last quarter. Northern Capital Management LLC raised its position in shares of American International Group by 19.7% in the third quarter. Northern Capital Management LLC now owns 55,210 shares of the insurance provider’s stock valued at $3,389,000 after buying an additional 9,095 shares in the last quarter. Finally, K.J. Harrison & Partners Inc acquired a new stake in shares of American International Group in the third quarter valued at approximately $1,019,000. Institutional investors own 83.64% of the company’s stock.

About American International Group

American International Group, Inc is a global insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers. Its segments include Commercial Insurance, Consumer Insurance, Other Operations and Legacy Portfolio.

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