American International Group EPS Beat Spurs Price Target Raises to $101

AIGAIG

American International Group reported Q3 EPS of $2.20 versus $1.57 consensus and revenue of $6.35 billion versus $6.82 billion estimates, and declared a $0.45 quarterly dividend (2.4% yield). Following this, Jefferies raised its price target from $96 to $101 and KBW lifted its target from $91 to $96.

1. Institutional Investor Activity

Cerity Partners LLC reduced its position in American International Group by 18.2% during the third quarter, selling 39,204 shares and ending the period with 176,389 shares valued at approximately $13.85 million. Several smaller firms also made notable moves: Twin Peaks Wealth Advisors and GFG Capital initiated new stakes during the second quarter, each valued at just over $30,000; Motco increased its holding by 950% in Q3, adding 380 shares; Barrett & Company initiated a position worth about $35,000; and NewSquare Capital grew its stake by 58.6%, acquiring an additional 154 shares. Institutional investors now control 90.60% of AIG’s outstanding stock.

2. Earnings and Financial Metrics

In its latest quarterly report, AIG delivered adjusted earnings per share of $2.20, exceeding consensus estimates by $0.63, on revenue of $6.35 billion. The company achieved a return on equity of 9.09% and a net margin of 11.89%. Year-over-year, EPS rose from $1.23 in the same quarter last year, and management projects full-year earnings of approximately $6.24 per share. AIG’s balance sheet remains strong, with a debt-to-equity ratio of 0.22 and liquidity ratios above 1.3, underpinning its financial flexibility.

3. Dividend Declaration

AIG recently declared a quarterly dividend of $0.45 per share, payable to shareholders of record as of mid-December and distributed at the end of that month. This translates to an annualized dividend of $1.80 and a payout ratio of 32.73%, reflecting the company’s commitment to returning capital to shareholders while maintaining prudent earnings retention for growth and risk management.

Sources

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