AIG Rises on Billion-Dollar Blackstone Deal

Wells Fargo threw in a modest bull note today

Assistant Editor
Jul 15, 2021 at 11:02 AM
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The shares of American International Group Inc (NYSE:AIG) are up 2.7% to trade at $47.68 at last check, after the company announced that it will sell 9.9% of its stake in its life insurance and retirement services unit to Blackstone (BX) for $2.2 billion. Blackstone will manage an initial $50 billion in assets for AIG's life insurance policies, which is expected to rise to roughly $100 billion in the next six years. 

AIG has dipped on the charts since its June 2 annual high of $54.08. However, the $45 level -- which has served as a floor over the past few months -- has caught several pullbacks, with help from long-term support at the 160-day moving average. Year-to-date, the equity is up 25.3%. 

In response to today's news, Wells Fargo raised its price target to $53 from $52. There is still plenty of room for further bull notes amongst the brokerage bunch. Of the 10 analysts in coverage, six carry a tepid "hold" rating on the stock. Meanwhile, short interest has been rapidly falling, down 16.9% during the most recent reporting period. 

 

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