AIG Should I Buy
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Based on the provided data, AIG is not a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. While the company has shown strong profitability in its latest quarter, the overall financial performance has declined year-over-year, and the stock's technical indicators do not suggest an immediate buying opportunity. Additionally, the options data and analyst ratings reflect mixed sentiment, and there are no significant positive catalysts to justify an immediate purchase.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is at 73.642, which is nearing overbought territory, and moving averages are converging, suggesting a lack of clear trend direction. Key resistance levels are at 78.997 and 80.545, while support levels are at 73.985 and 72.437. The stock is trading near resistance, which could limit upside potential in the short term.
AIG reported strong Q4 2025 adjusted EPS of $1.96, marking a 51% year-over-year increase, supported by robust underwriting income. The company also declared a stable quarterly dividend of $0.45 per share, indicating consistent cash flow.
Revenue and net income declined significantly year-over-year in Q4 2025, with revenue down 14.13% and net income down 18.15%. Analysts have mixed ratings, with some lowering price targets due to a challenging P&C insurance sector outlook. Additionally, the stock trend analysis predicts a high probability of short-term declines.
In Q4 2025, AIG's revenue dropped by 14.13% year-over-year to $6.16 billion, and net income fell by 18.15% to $735 million. EPS also declined by 6.90% to $1.35. Despite these declines, the company achieved a 48% increase in underwriting income, reflecting strong operational performance in its core insurance business.
Analyst sentiment is mixed. Keefe Bruyette raised its price target to $97 with an Outperform rating, while Barclays lowered its target to $81 with an Equal Weight rating. Other firms like Goldman Sachs and BofA have neutral ratings, citing challenges in the P&C insurance sector and softening pricing trends. The average price target remains slightly above the current price, but the outlook is cautious.
