The Case for and Against American International Group (NYSE:AIG)

American International Group, Inc. (AIG) is an interesting player in the Financial space, with a focus on Property & Casualty Insurance. The stock has been active on the tape, currently trading at $54.79, up from yesterday’s close by 2.01%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

American International Group, Inc. (AIG) currently trades with a market capitalization of $49.42 Billion. That value represents a market adjusting for revenues that have been falling by -7.04 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $832 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.27 on a per share basis this quarter. Perhaps, that suggests something about why 1.88% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, American International Group, Inc. recorded a 52-week high of $67.30. It is now trading 12.51% off that level. The stock is trading $54.39 its 50-day moving average by -0.4%. The stock carved out a 52-week low down at $49.57.

In recent action, American International Group, Inc. (AIG) has made a move of -0.71% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.08, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.65% with $901.54 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of AIG.

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