Stock of the Day

June 23, 2023

American International Group (AIG)

$76.72
+$0.47 (+0.6%)
Market Cap: $45.24B

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. This segment offers marine, energy-related property insurance, aviation, political risk, trade credit, trade finance, and portfolio solutions, as well as operates reinsurance business; voluntary and sponsor-paid personal accident, and supplemental health products; and personal auto and personal property insurance. Its Life and Retirement segment offers individual retirement products, including variable, fixed index, and fixed annuities, as well as retail mutual funds; group retirement products comprising record-keeping, plan administrative and compliance services, financial planning, and advisory solutions; life insurance, including term and universal life insurance; and institutional markets products, which includes wrap products, structured settlement, pension risk transfer annuities, corporate and bank-owned life insurance, high net worth, and guaranteed investment contract products. It distributes its products through a network of brokers, agents, advisors, banks, and other distributors. The company was founded in 1919 and is headquartered in New York, New York.

American International Group Bull Case

Here are some ways that investors could benefit from investing in American International Group, Inc.:

  • The stock is currently trading at $75.32, which is close to the recent target price upgrades from analysts, indicating potential for growth.
  • American International Group, Inc. has received multiple upgrades from analysts, including a recent upgrade from a "sell" to a "hold" rating, suggesting improved investor sentiment.
  • The company has a positive return on equity of 8.63%, indicating effective management and profitability relative to shareholder equity.
  • Analysts anticipate earnings per share (EPS) of 4.89 for the current year, which reflects expected growth in profitability.
  • The firm has declared a quarterly dividend of $0.40 per share, providing a yield of approximately 2.12%, which can be attractive for income-focused investors.

American International Group Bear Case

Investors should be bearish about investing in American International Group, Inc. for these reasons:

  • The company reported an EPS of $1.30, missing analysts' consensus estimates of $1.33, which may raise concerns about its ability to meet growth expectations.
  • American International Group, Inc. has a negative net margin of 6.19%, indicating that the company is currently spending more than it earns, which could affect long-term profitability.
  • The stock has a price-to-earnings (P/E) ratio of -22.22, suggesting that the company is not currently generating positive earnings, which can be a red flag for investors.
  • With a debt-to-equity ratio of 0.22, while relatively low, it indicates that the company is not heavily leveraged, but it may also suggest limited growth potential through debt financing.
  • Analysts have mixed ratings, with nine holding and eight buying, indicating uncertainty in the stock's future performance.

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