FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
American International Group Inc. (NYSE:AIG) shares have hit a notable milestone, reaching a 52-week high of $87.45, capping an impressive run that includes a 21% gain over the past six months and nearly 20% year-to-date. According to InvestingPro, the insurance giant’s market capitalization now stands at $51.8 billion. This peak reflects a significant uptrend for the insurance giant, marking a substantial recovery and growth phase over the past year. Investors have shown increased confidence in AIG’s strategic initiatives and financial health, as evidenced by the stock’s impressive 1-year change, posting a gain of 12.33%. The company has maintained dividend payments for 13 consecutive years, currently offering a 1.84% yield. The company’s performance, particularly in the context of a challenging economic environment, underscores its resilience and the effectiveness of its business model. The 52-week high serves as a testament to AIG’s sustained progress and the positive sentiment surrounding its future prospects. For deeper insights into AIG’s valuation and 10+ additional exclusive ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, American International Group (AIG) has announced a significant $7.5 billion share repurchase program, set to commence on April 1, 2025. This buyback plan includes approximately $3.4 billion remaining from a previous authorization. During AIG’s recent Investor Day event, the company outlined ambitious financial targets, including an Operating Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) of over 20% for the years 2025 to 2027 and a core operating Return on Equity (ROE) target of 10% to 13%. Additionally, AIG aims to maintain a General Insurance expense ratio under 30% and increase its dividend per share at a CAGR of over 10% for 2025 to 2026.
Analyst firms have also weighed in on AIG’s prospects. Keefe, Bruyette & Woods raised its price target for AIG shares to $98, maintaining an Outperform rating, citing AIG’s robust reserves, capital flexibility, and advanced AI capabilities. They project a 20%-plus EPS CAGR and significant ROE expansion in the coming years. Meanwhile, TD Cowen reaffirmed its Hold rating with an $86 price target, acknowledging AIG’s progress and transformation but aligning their growth expectations with market consensus.
Keefe, Bruyette & Woods also reiterated their Outperform rating with a $90 target, based on AIG’s strategic initiatives and anticipated reserve releases. These recent developments and analyst insights reflect a strong focus on shareholder value and strategic growth at AIG.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.