American International Group Inc (AIG) Begins Returning More To Shareholders Despite Quarterly Loss


It’s all about shareholder return, and that’s seemingly what American International Group Inc (NYSE:AIG) wants to provide their faithful investors. Despite reporting a quarterly loss this morning, the insurance giant has boosted their dividend and decided to ramp up their share buyback program in an effort to return more capital to shareholders and boost their stock’s value.

American International Group Inc (NYSE:AIG) reported a fourth quarter operating loss of $1.10 per share, falling a bit short of the $0.90 per share loss that analysts were anticipating, and well short of the $0.97 cent EPS of a year ago. With that said shares are up quite significantly in mid-morning trading after the company decided to boost their dividend 14% to $0.32 per quarter. This combined with an additional $5 billion in capital aimed towards buying back shares, has caused investors to gobble up the stock.

The stock is up 4.75% or $2.4 following the news, hitting $52.92 per share. About 4.47M shares traded hands. AIG has declined 18.20% since July 9, 2015 and is downtrending. It has underperformed the S&P500 by 9.33%.

From a total of 10 analysts covering American International Group (NYSE:AIG) stock, 6 rate it a “Buy”, 2 a “Sell”, and 2 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $77 while the lowest target price is $63. The mean of all analyst targets is $69.55 which is 31.42% above today’s ($52.92) stock price. American International Group was the topic of 18 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Keefe Bruyette & Woods upgraded shares on December 15 to a “Outperform” rating. S&P Research maintained shares with a”Buy” rating and a $72 target share price in their report from an October 29. Atlantic Securities downgraded AIG stock in a recent report from November 4 to a “Underweight” rating. Vetr downgraded the rating on August 27. Vetr has a “Strong-Buy” rating and a $65.08 price target on shares. Finally, Piper Jaffray maintained the stock with a “Overweight” rating in a report they issued on a November 3.

The institutional sentiment increased to 0.84 in Q2 2015. It’s up 0.08, from 0.76 in 2015Q2. The ratio is positive, as 75 funds sold all their American International Group Inc shares they owned while 386 reduced their positions. 81 funds bought stakes while 305 increased their total positions. Institutions now own 1.04 billion shares which is 4.10% less than the previous share count of 1.08 billion in 2015Q2.

Starr International Co Inc holds 83.82% of its total portfolio in American International Group Inc, equating to 15.43 million shares. Boyle Capital Management Llc owns 307,083 shares representing 22.96% of their total US portfolio. Moreover, Perry Corp has 21.78% of their total portfolio invested in the company, equating to 9.72 million shares. The Connecticut-based Silver Point Capital L.P. has a total of 18.58% of their portfolio invested in the stock. Spindletop Capital Llc, a New York-based fund reported 355,000 shares owned.

American International Group, Inc. is an insurance company. The company has a market cap of $63.05 billion. The Firm provides a range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services. It has 15.55 P/E ratio. The Company’s various offerings include services and products that help businesses and individuals protect their assets, manage risks and provide for retirement security.