American International Group (NYSE:AIG) has received an upgrade from Argus Research, shifting from a "Hold" to a "Buy" status. This change reflects a positive outlook for the insurance giant, with an average price target set at $73.51, suggesting a potential upside of approximately 14% from its last closing price.
The company is anticipated to see a slight revenue contraction, with expectations of nearly a 2% decline to $49.158 billion for the year. Despite this, the non-GAAP earnings per share (EPS) are estimated to be around $6.35.
Institutional investors are demonstrating a growing interest in AIG, with ownership increasing and current holdings exceeding 782 million shares. The positive sentiment is further underscored by a bullish put/call ratio just under one.
Capital Research Global Investors has significantly bolstered its stake in AIG by over 6%, now possessing more than 41 million shares. This move is a strong indicator of confidence in the company's value proposition and future performance.
InvestingPro Insights
American International Group's (AIG) recent upgrade by Argus Research is complemented by key metrics and insights that can further inform investors about the company's financial health and market position. According to real-time data from InvestingPro, AIG has a market capitalization of $45.61 billion and a Price/Earnings (P/E) ratio of 11.44, which adjusts to 10.11 for the last twelve months as of Q3 2023. Despite a revenue contraction of 12.21% during the same period, AIG maintains a robust gross profit margin of 31.09%.
InvestingPro Tips highlight that AIG's management has been actively buying back shares and maintaining dividend payments for 11 consecutive years, with a dividend yield of 2.22% as of the latest data. Additionally, the company is trading near its 52-week high, reflecting investor confidence. However, it's important to note that analysts have revised their earnings expectations downwards for the upcoming period, and short-term obligations exceed liquid assets, which could be areas of concern for potential investors.
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