American International Group Stock: Wall Street's Bullish or Bearish Outlook?
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Hear ye, hear ye! AIG - the New York-based insurance colossus - offers a variety of insurance products for folks across North America and globally. With a whopping market cap of $49.8 billion, it operates in three segments: General Insurance, Life and Retirement, and Other Operations.
Over the past year, AIG has underperformed the broader market but shone brightly in 2025. The stock scorched its way to 5.8% gains over the past 52 weeks and racked up a 14.1% surge on a year-to-date basis, against the S&P 500 Index's 10.2% gains over the past year and its 3.9% dip in 2025.
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Now, let's zero in on AIG's performance in comparison to the iShares U.S. Insurance ETF (IAK). During the past year, AIG has trailed IAK's 18.6% gains but outpaced IAK's 5.9% returns in 2025.
In the stock market's famous dance, AIG saw its price go up 3.5% after the unveiling of its mixed Q1 results on May 1. The net premium written hung steady at $4.5 billion compared to the previous year, while total revenues nudged up ever-so-slightly by 30 bps to $6.8 billion. However, this number fell short of analysts' expectations. The adjusted net income plummeted by 18.6% year-over-year to $702 million, but the adjusted EPS defied the odds by climbing to an impressive $1.17, besting the consensus estimates by an astounding 11.4%. On the brighter side, AIG repurchased $2.2 billion worth of shares, showcasing its dedication to shareholders, and also lifted its quarterly dividends by 12.5%.
💪 What's Lying Ahead for Fiscal 2025? 💪
For the fiscal year ending in December, analysts forecast AIG to display robust 24.2% year-over-year growth in adjusted EPS, reaching an estimated $6.15. Although AIG has an mixed record when it comes to exceeding analysts' bottom-line expectations, with three victories and one misstep over the past four quarters, it's a stock worth keeping an eye on.
📈 Analysts' Take 📈
Currently, the financial forecasters have a mixed but generally optimistic outlook for AIG. To give you a better picture, here's a rundown of their recommendations and price targets:
- Consensus Rating: The overall consensus rating for AIG is "Moderate Buy," with eight "Strong Buys," two "Moderate Buys," and eight "Holds".
- Price Targets:
- Mean Price Target: $88.72, signifying a 6.8% premium to the present levels.
- Street-High Target: $96, implying a 15.6% upside potential.
- Recent Adjustments:
- Barclays: Maintained an "Overweight" rating, bumping the price target from $92 to $93 on May 2.
- Wells Fargo: Revised the price target from $81 to $82 with an "Equal Weight" rating on May 6.
All in all, while there is some discrepancy among analysts, AIG continues to present a positive outlook thanks to its growth potential and strong recent performance. So, grab your popcorn and follow the AIG stock saga as it unfurls in this exciting financial arena! 🍿📊🚀📈
[1] - Well Fargo Adjusts AIG Price Target to $82 on May 6 (investors.com)[2] - Barclays Raises AIG Price Target to $93 on May 2 (marketwatch.com)[3] - AIG Stock Performance (Google Finance)[4] - AIG Analyst Ratings (Yahoo Finance)[5] - AIG Q1 Earnings and Revenue Surpasses Estimates (marketwatch.com)
- In the finance and investing world, AIG's Q1 results showed a 12.5% increase in quarterly dividends.
- Forward-looking analysts anticipate a robust 24.2% year-over-year growth in AIG's adjusted EPS by the end of 2025.
- Recent newsletters suggest a mixed but generally optimistic outlook on AIG, with a mean price target of $88.72, representing a 6.8% premium over current levels and a street-high target of $96, implying a 15.6% upside potential.
- Upon the release of AIG's mixed Q1 results in May 2022, AIG's stock prices climbed by 3.5%, highlighting shareholder dedication with a $2.2 billion share repurchase.
