Spotting American International Group, Inc. (AIG)’s Trend Before It Is Obvious To All

Analysts at Evercore ISI cut their rating on shares of American International Group, Inc. (NYSE:AIG) from Outperform to In-line in their opinion released on November 07. Deutsche Bank analysts again handed out a Hold rating to AIG stock but they lifted target price for the shares in a flash note to investors on October 22. The price target has been raised from $54 to $52. Deutsche Bank, analysts launched coverage of AIG stock with a Hold rating, according to their flash note to investors on October 22.

By watching the trading activity of corporate insiders, it will become easier to get a sense of American International Group, Inc. (NYSE:AIG)’s prospects. The earliest insider trade took place on 05/04/2018. Steenland Douglas M gathered a total of 4.8 thousand shares of company at average share price of $52.06. The total for the purchase was set at $249.89 thousand. After this transaction, the Director account balance stood at 4.8 thousand shares. The stock lost -19.98 percent since that insider purchase. On 05/04/2018, Leonardi Thomas B, Executive Vice President, purchased 2.5 thousand shares at a price per share of $51.55. This added 128.88 thousand shares to the insider’s fortune and the stock saw a -19.19 percent retreat in value since the news became public. This transaction left 2.5 thousand shares in the Executive Vice President account. On 02/28/2018, Director Cornwell W Don performed a sale transaction worth $146.95 thousand. This sale at $58.78 each has eliminated 2.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -29.13 percent decrease since the transaction was reported. The insider now is left with 0 thousand shares remaining in the account. Macia Seraina, who performs the Executive Vice President job, sold 3.5 thousand shares for $209.16 thousand. The disposal occurred on 02/16/2018 was priced at $59.71 per share. The share price plunged -30.23 percent since the reporting date. Macia Seraina now left with a stake of 5.81 thousand AIG stock worth $242.04 thousand after the insider selling.

American International Group, Inc. (AIG) is expected to jump by 24.82 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $76-month high price target. This represents a whopping 82.43 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $52, which represents a return potential of 24.82 percent when compared to the closing price of the stock of $41.66 on Friday, January 11. The lowest price target for the stock is $45 — slightly more than 8.02 percent from AIG’s current share price.

The shares are currently floating around the first support level of $41.07. Below this, the next support is placed in the zone of $40.49. Till the time, the AIG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 59.64 on daily chart, which may remain a cause for concern. If the price breaks below $40.49 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $42.09 mark may result into a pull-back move towards $42.53 level.

AIG shares accumulated 0.24 points or 0.58 percent on Friday to $41.66 with a light trade volume of 4.774 million shares. After opening the session at $41.14, the shares went as high as $41.94 and as low as $40.92, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $37.3 billion and now has 895.24 million shares outstanding. American International Group, Inc. (AIG) stock has gained 13.86 percent of market value in 21 trading days.

AIG stock has a trailing 3-year beta of 1.41, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.72 a share in the trailing twelve months. The stock’s value has surged 5.71 percent year to date (YTD) against a decline of -31.7 percent in 12 month’s time. The company’s shares still trade -35.96 percent away from its 1-year high of $65.05 and 15.21 percent up from 52-week low of $36.16. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of American International Group, Inc. (AIG) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry AIG operates in has an average P/E of 28.33. Its P/E ratio went as low as 8.4X and as high as 37.66 over the 5-year span. Further, it is sporting a 0.78 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.76. 0 percent is the gross profit margin for American International Group, Inc. and operating margin sits at 6.3 percent. Along with this, the net profit margin is -12.7 percent.