In a recent move, Peter Zaffino, the Chairman and CEO of American International Group, Inc. (NYSE:AIG), sold a significant number of shares in the company. According to the latest filings, Zaffino sold a total of 332,034 shares at a weighted average price between $75.87 and $76.29, netting approximately $25,265,115. Additionally, another smaller transaction involved the sale of 966 shares, which was executed in multiple trades with prices ranging from $76.24 to $76.34.
These sales were part of a prearranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This plan was established by Zaffino on December 15, 2023, and the options exercised were granted under the AIG 2013 Omnibus Incentive Plan, with vesting periods completed between 2018 and 2020.
On the same day, Zaffino also acquired 333,000 shares through the exercise of employee stock options due to expire on July 24, 2024. The options were exercised at a price of $64.53, amounting to a total transaction value of $21,488,490. Following these transactions, Zaffino's direct holdings in American International Group have changed, reflecting his current investment and commitment to the company.
These transactions provide insight into the trading activities of one of AIG's top executives and can be a point of interest for investors monitoring insider behaviors within the company. American International Group, known for its insurance and financial services, remains a significant player in its industry, and executive trades are often closely watched for indications of company performance and executive confidence.
InvestingPro Insights
As investors digest the recent insider trading activity at American International Group, Inc. (NYSE:AIG), it's worth noting some key metrics and insights from InvestingPro that could shed light on the company's current financial health and market position. AIG's market capitalization stands robust at $51.33 billion, reflecting its significant presence in the insurance industry. The company's P/E ratio, an indicator of market expectations about its earnings growth, is currently at 15.06, with a slightly lower adjusted P/E ratio for the last twelve months as of Q4 2023 at 14.58.
Moreover, AIG has been showing a strong return over the last year, with a price total return of 65.14%, and is trading near its 52-week high, at 99.88% of that peak value. This performance is complemented by a noteworthy dividend yield of 1.89% as of the latest data, and the company has a history of maintaining dividend payments for 12 consecutive years, signaling a commitment to returning value to shareholders.
InvestingPro Tips highlight that AIG's management has been aggressively buying back shares and the company has a high shareholder yield, which could be seen as a vote of confidence in the company's future prospects. However, it's also important to consider that 8 analysts have revised their earnings downwards for the upcoming period, which may warrant a closer look at the company's forward guidance and strategic initiatives.
For those interested in a deeper dive into AIG's financials and strategic outlook, there are additional InvestingPro Tips available that can provide more nuanced insights. To explore these tips and benefit from the full range of analytics, interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/AIG. With 10 more tips listed on InvestingPro, investors have a wealth of information at their fingertips to inform their investment decisions regarding AIG.
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