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American International Group, Inc. (AIG), headquartered in New York City, is a leading global insurance organization with a market cap of $49.2 billion. AIG provides a broad range of insurance and financial services, catering to the needs of individual and commercial clients worldwide. As a dominant force in the insurance industry, AIG offers diverse solutions designed to help clients manage risks and safeguard their assets effectively. Competing with other major insurance and risk management firms, AIG's primary competitors include Arthur J. Gallagher & Co. (AJG), a significant player in the global insurance brokerage and risk management industry.
Companies valued at $10 billion or more are generally considered "large-caps," and AIG fits this criterion perfectly, signifying its substantial size, stability, and influence in the insurance industry. Renowned for its comprehensive insurance and financial services, AIG plays a pivotal role in helping clients manage risks and protect their assets.
AIG shares are trading 8.3% below their 52-week high of $80.83, which they hit on May 10. Also, the stock has declined 1.6% over the past three months, underperforming the S&P 500 Index’s ($SPX) 6.6% returns over the same time frame.
Longer term, AIG is up 9.4% on a YTD basis, and the shares have gained 29.4% over the past 52 weeks. In comparison, the S&P 500 has gained 15% in 2024 and 24.4% over the past year.
To confirm the recent bearish price trend, AIG has been trading below its 50-day moving average since early June. However, it has been trading above its 200-day moving average since late August 2023, indicating a long-term bullish price trend.
AIG released its Q1 earnings on May 1. Its adjusted revenue was $12.47 billion, exceeding Wall Street's expectations of $12.04 billion. Furthermore, its adjusted EPS was $1.77, beating the expectations of $1.66. The stock increased by 3% during the trading session after the earnings report was reported.
Highlighting the contrast in performance, AIG's competitor, AJG, has outperformed AIG and SPX with a 16.5% return on a YTD basis.
Despite AIG's recent underperformance compared to SPX, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 17 analysts in coverage. The mean price target of $74.13 reflects a 13.6% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
