High Volume of Call Options Traded for American International Group

On Friday, American International Group, Inc. (NYSE:AIG - Get Free Report) experienced a notable surge in options trading activity. Investors acquired an impressive total of 27,879 call options, marking a staggering 552% increase over the usual daily volume of around 4,275 call options. This unusual trading behavior signifies growing interests in the company's future performance.

Insider Investments

In exciting news regarding American International Group, it was reported that Director John G. Rice bought 10,000 shares of the stock on February 13th. This purchase was made at an average price of $77.00 per share, totaling a significant investment of $770,000. Following this transaction, Rice now holds a total of 10,000 shares valued at $770,000, representing a notable change in his investment position. The transaction details were shared in a filing with the Securities and Exchange Commission, highlighting the level of commitment from insiders. Current insider ownership of AIG stands at 0.61%.

Recent Institutional Trading Activity

There have also been several adjustments made by institutional investors regarding their stakes in American International Group. For instance, Universal Beteiligungs und Servicegesellschaft mbH made a new investment in AIG during the fourth quarter, valued at approximately $28.1 million. Another firm, Integrated Advisors Network LLC, increased its ownership by 1.0%, now holding 16,316 shares worth about $1.2 million after acquiring an additional 161 shares recently. Ameriflex Group Inc. and Challenger Wealth Management also entered the scene with new stakes amounting to approximately $29,000 and $269,000, respectively. Lastly, AlphaCore Capital LLC expanded its holdings by 11.8%, bringing its total ownership to 12,349 shares valued at nearly $899,000. Overall, institutional investors own approximately 90.60% of AIG’s stock.

Stock Performance Updates

In the midday trading session on Friday, American International Group's stock saw an increase of 1.9%, rising by $1.52 to reach $83.07. During this trading day, AIG recorded a volume of 3,317,183 shares, slightly below its average daily volume of 4,058,702. The stock has showcased a 52-week range, with lows at $69.00 and highs reaching $83.77. It currently holds a market capitalization of $49.29 billion, a price-to-earnings ratio of -39.96, and a beta of 0.98.

Earnings Results and Dividends

American International Group last announced its earnings results on February 11th, reporting earnings per share of $1.30 for the quarter, which fell short of the anticipated $1.33 by $0.03. The company has a return on equity of 8.01% but faced a net margin of -4.25%. Analysts estimate the company will achieve earnings per share of 6.24 for the current fiscal year.

On another note, AIG has declared a quarterly dividend to be distributed on March 31st, with a record date for shareholders on March 17th. The declared dividend stands at $0.40 per share, equivalent to an annualized dividend of $1.60, providing investors with a yield of 1.93%. The ex-dividend date is set for March 17th, with the payout ratio reported at -76.92%.

Analyst Perspectives

Several financial analysts have provided updates on American International Group's stock ratings. Morgan Stanley adjusted their price target from $75.00 to $76.00 while maintaining an "equal weight" rating. Keefe, Bruyette & Woods revised their target upward from $87.00 to $90.00, offering an "outperform" rating. Additionally, BMO Capital Markets lifted their target from $75.00 to $83.00, rating it as "market perform." Wells Fargo also increased their price target from $76.00 to $77.00. Furthermore, HSBC upgraded AIG from a "hold" rating to a "strong-buy" rating recently. Presently, eight analysts have rated the stock as "hold," nine have given it a "buy" rating, and one has classified it as a "strong buy," leading to an average rating of "Moderate Buy" with a price target of $84.31 according to MarketBeat data.

Company Overview

American International Group, Inc. specializes in providing insurance products across various sectors, catering to commercial, institutional, and individual customers both in North America and internationally. The company operates through three main segments: General Insurance, Life and Retirement, and Other Operations, offering a diverse range of coverage options.

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