Wells Fargo Reiterates a Buy Rating on American International Group

By Austin Angelo

Wells Fargo analyst Elyse Greenspan reiterated a Buy rating on American International Group (NYSE: AIG) yesterday. The company’s shares closed yesterday at $58.98.

Greenspan observed:

“We continue to believe the next catalyst will be the identification of the company’s new CEO. Interesting to us, AIG is holding its annual general meeting on June 28 (compared to May 11 last year) which to us indicates the company looking to have the next CEO in place ahead of that time.  Q1 earnings info. AIG plans to report earnings after the close on Wednesday, May 3 and is to host its conference call on Thursday, May 4 at 9am ET. The dial- in number is 800-347-6311; access code: 8737099.”

According to TipRanks.com, Greenspan is a 2-star analyst with an average return of 1.6% and a 38.9% success rate. Greenspan covers the Financial sector, focusing on stocks such as Marsh & Mclennan Companies, Renaissancere Holdings Ltd, and United Insurance Holdings.

Currently, the analyst consensus on American International Group is Moderate Buy and the average price target is $68.67, representing a 16.4% upside.

In a report issued on April 13, Credit Suisse also maintained a Buy rating on the stock with a $72 price target.

Based on American International Group’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $14.2 billion and GAAP net loss of $3.04 billion. In comparison, last year the company earned revenue of $12.83 billion and had a GAAP net loss of $183 million.

Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is neutral on the stock. Most recently, in February 2017, Philip Fasano, the EVP of AIG sold 6,000 shares for a total of $381,560.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

American International Group, Inc. is an insurance company, which engages in the provision of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services. Its offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. It operates through Commercial Insurance, Consumer Insurance, and Corporate and Other Category. The Commercial Insurance has three operating segments: Property Casualty, Mortgage Guaranty and Institutional Markets. It provides insurance products and services for commercial and institutional customers. The Consumer Insurance also has three operating segments: Retirement, Life and Personal Insurance. It brings a portfolio of retirement, life insurance and personal insurance products offered through distribution networks. The Corporate and Other Category segment includes AIG Parent as well as certain legacy assets and run-off insurance businesses. The company was founded by Cornelius Vander Starr in 1919 and is headquartered in New York, NY.