High Volume of Call Options Traded for American International Group (NYSE:AIG)

On Friday, American International Group, Inc. (NYSE:AIG - Get Free Report) experienced an extraordinary volume of options trading. Investors were notably active, purchasing 27,879 call options, which marks a significant increase of 552% compared to the average daily volume of 4,275 call options.

Insider Trading Activity

In related news, AIG’s Director, John G. Rice, made a substantial move by acquiring 10,000 shares of the company on February 13th. The shares were purchased at an average price of $77.00 each, totaling an investment of $770,000. After this purchase, Rice’s total ownership in AIG swelled to 10,000 shares, reflecting a notable enhancement in his stake. This transaction was made public via a filing with the Securities and Exchange Commission. Currently, company insiders hold about 0.61% of AIG's stock.

Institutional Investors' Interest

A number of institutional investors have adjusted their positions in American International Group recently. For instance, Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake valued at approximately $28.1 million during the fourth quarter. Meanwhile, Integrated Advisors Network LLC raised its stake by 1.0%, now holding 16,316 shares worth about $1.19 million after adding 161 shares. Ameriflex Group Inc. and Challenger Wealth Management also entered the scene with new stakes worth around $29,000 and $269,000, respectively. Additionally, AlphaCore Capital LLC increased its holdings in AIG by 11.8%, now owning 12,349 shares valued at roughly $899,000. Overall, institutional investors control 90.60% of the company’s stock.

AIG's Market Activity

AIG’s stock appreciated by 1.9% during Friday's trading session, closing at $83.07. It recorded a trading volume of 3,317,183 shares compared to its average of 4,058,702. Key financial metrics show a current ratio of 0.67, quick ratio of 0.67, and a debt-to-equity ratio of 0.21. The stock’s 52-week low and high are $69.00 and $83.77, respectively, while its market capitalization stands at approximately $49.29 billion. The price-to-earnings ratio is reported at -39.96, with a PEG ratio of 1.01, and the beta is 0.98. AIG's 50-day and 200-day moving averages are $76.03 and $75.24, respectively.

American International Group's most recent earnings report was released on February 11th, revealing an EPS of $1.30 for the quarter, which fell short of the consensus estimate of $1.33 by $0.03. Analysts currently predict that AIG will achieve earnings of $6.24 per share for the ongoing fiscal year.

Dividend Announcement

AIG has also recently announced a quarterly dividend, which is scheduled to be paid on March 31st. Shareholders registered by March 17th will receive a dividend of $0.40 per share, leading to an annualized dividend of $1.60, yielding 1.93%. The ex-dividend date is set for March 17th, and the company has a payout ratio of -76.92%.

Changes in Analyst Ratings

Several analysts have updated their ratings for AIG. For instance, Morgan Stanley revised the price target from $75.00 to $76.00 and maintains an "equal weight" rating. Keefe, Bruyette & Woods set their target price higher from $87.00 to $90.00 with an "outperform" rating. BMO Capital Markets raised theirs from $75.00 to $83.00 with a "market perform" rating. Meanwhile, Wells Fargo increased their price target from $76.00 to $77.00, also maintaining an "equal weight" rating. HSBC Global Research has upgraded AIG from a "hold" to a "strong buy" rating. Overall, the stock holds a rating of "Moderate Buy" from analysts with an average price target of $84.31.

Company Overview

American International Group, Inc. provides a range of insurance products for commercial, institutional, and individual customers both in North America and globally. Its operations are divided into three main segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance sector focuses on offering property insurance related to commercial and industrial ventures and includes various types of liability and professional liability insurance.

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