American International Group, Inc. (NYSE:AIG) Losing Drop tank as a Last Resort

  on Dec 17,2012 Posted in Business News ,Finance
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American International Group, Inc. (NYSE:AIG) is at the door step of selling its stock of AIA Asian based Life Insurance company this week. Nevertheless, analysts are considering this deal as one of the most significant ones of the year because; this will result in greater financial gains for the company in coming days.

However, still this matter is serving as a center of speculation in the industry over exact share price at which the stock will be sold. But, according media reports, American International Group, Inc. will initiate selling of the stock which contains 1.65 billion shares from $3.82 each.

Nevertheless, the selling price of shares will become prone to market mechanics in the next trading session in US, which according to analysts can cause deformation of price by 3%- 6% per share.

Talking about the competitiveness, let’s have a glance over other contending firms of the sector. Shares of Hartford Financial Services Group Inc (NYSE:HIG) fell -0.98% to settle at $21.29, The Allstate Corporation (NYSE:ALL) moved down -1.64% to finish at $40.18 while Radian Group Inc. (NYSE:RDN) dropped -1.98% to end the trading session at $4.95.

Last session’s traded volume of American International Group, Inc. (NYSE:AIG) was 29.33 million shares as compared to its average volume of 30.50 million shares. Company changed hands within the price range of $33.66 – $34.35 in the last trading session.

American International’s earnings per share growth ratio this year was -41.67% compared with the -17.23% and -1.00% of MGIC Investment Corp. (MTG) and Progressive Corp. (PGR) respectively. The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected growth. PEG of the firm remained 0.14% while return on assets was 5.01%.

The company generated revenue of $70.62 billion in the previous twelve months and had $27.05 billion in earnings. The stock posted a net profit margin of +38.83% whereas operating margin was +16.70%.




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