American International Group Inc. [NYSE: AIG] loss -2.32% or -0.92 points to close at $38.79 with a heavy trading volume of 5237437 shares. The company report on December 12, 2020 that AIG Announces Adjustments to Warrant Exercise Price and Shares Receivable upon Warrant Exercise.
American International Group, Inc. (NYSE: AIG) announced that in accordance with the terms of the outstanding warrants expiring January 19, 2021 (CUSIP number 026874156) (the “Warrants”) to purchase shares of AIG Common Stock, par value $2.50 per share, the Warrant exercise price will be reduced to $42.2282 per share from $42.4151 per share and the number of shares of AIG Common Stock receivable upon Warrant exercise will increase to 1.067 from 1.062. Each of these adjustments will be effective at the close of business on December 14, 2020. Any Warrant exercised on or prior to December 14, 2020 will not be entitled to these adjustments.
These adjustments resulted from the declaration by the Board of Directors of AIG on November 5, 2020 of a dividend of $0.32 per share on AIG Common Stock. The dividend is payable on December 28, 2020 to stockholders of record at the close of business on December 14, 2020.
It opened the trading session at $38.83, the shares rose to $39.17 and dropped to $38.555, the range by which the price of stock traded the whole day. The daily chart for AIG points out that the company has recorded 16.87% gains over the past six months. However, it is still -141.38% lower than its most recent low trading price.
If we look at the average trading volume of 6.56M shares, AIG reached to a volume of 5237437 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about American International Group Inc. [AIG]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AIG shares is $39.53 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AIG stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Barclays have made an estimate for American International Group Inc. shares, keeping their opinion on the stock as Equal Weight, with their previous recommendation back on November 17, 2020. While these analysts kept the previous recommendation, Goldman raised their target price from $38 to $39. The new note on the price target was released on November 11, 2020, representing the official price target for American International Group Inc. stock. Previously, the target price had yet another raise from $34 to $38, while BofA Securities kept a Buy rating on AIG stock.
The Average True Range (ATR) for American International Group Inc. is set at 1.28, with the Price to Sales ratio for AIG stock in the period of the last 12 months amounting to 0.75. The Price to Book ratio for the last quarter was 0.53, with the Price to Cash per share for the same quarter was set at 3.62. Price to Free Cash Flow for AIG in the course of the last twelve months was 37.03.
Trading performance analysis for AIG stock
American International Group Inc. [AIG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.67. With this latest performance, AIG shares gained by 3.86% in over the last four-week period, additionally plugging by 16.87% over the last 6 months – not to mention a drop of -23.99% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AIG stock in for the last two-week period is set at 55.42, with the RSI for the last a single of trading hit 48.27, and the three-weeks RSI is set at 57.78 for American International Group Inc. [AIG]. The present Moving Average for the last 50 days of trading for this stock 34.75, while it was recorded at 39.55 for the last single week of trading, and 30.38 for the last 200 days.
American International Group Inc. [AIG]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and American International Group Inc. [AIG] shares currently have an operating margin of +13.78. American International Group Inc.’s Net Margin is presently recorded at +6.66.
Return on Total Capital for AIG is now 6.99, given the latest momentum, and Return on Invested Capital for the company is 3.48. Return on Equity for this stock inclined to 5.41, with Return on Assets sitting at 0.70. When it comes to the capital structure of this company, American International Group Inc. [AIG] has a Total Debt to Total Equity ratio set at 54.94. Additionally, AIG Total Debt to Total Capital is recorded at 35.46, with Total Debt to Total Assets ending up at 7.41. Long-Term Debt to Equity for the company is recorded at 52.99, with the Long-Term Debt to Total Capital now at 33.95.
Reflecting on the efficiency of the workforce at the company, American International Group Inc. [AIG] managed to generate an average of $71,739 per employee.
American International Group Inc. [AIG]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, American International Group Inc. posted 1.03/share EPS, while the average EPS was predicted by analysts to be reported at 1/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 3.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AIG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for American International Group Inc. go to 1.93%.
An analysis of insider ownership at American International Group Inc. [AIG]
There are presently around $30,139 million, or 92.10% of AIG stock, in the hands of institutional investors. The top three institutional holders of AIG stocks are: VANGUARD GROUP INC with ownership of 81,335,982, which is approximately 17.637% of the company’s market cap and around 0.05% of the total institutional ownership; BLACKROCK INC., holding 77,652,133 shares of the stock with an approximate value of $3.01 billion in AIG stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $2.67 billion in AIG stock with ownership of nearly -12.416% of the company’s market capitalization.
Positions in American International Group Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 293 institutional holders increased their position in American International Group Inc. [NYSE:AIG] by around 50,857,617 shares. Additionally, 368 investors decreased positions by around 54,452,217 shares, while 117 investors held positions by with 671,665,226 shares. The mentioned changes placed institutional holdings at 776,975,060 shares, according to the latest SEC report filing. AIG stock had 80 new institutional investments in for a total of 10,849,073 shares, while 97 institutional investors sold positions of 9,509,250 shares during the same period.