Trade-Ideas LLC identified

American International Group

(

AIG

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified American International Group as such a stock due to the following factors:

  • AIG has 16x the normal benchmarked social activity for this time of the day compared to its average of 7.13 mentions/day.
  • AIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $597.6 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on AIG:

American International Group, Inc. provides insurance products and services for commercial, institutional, and individual customers in the United States, the Asia Pacific, and internationally. The stock currently has a dividend yield of 2%. AIG has a PE ratio of 16. Currently there are 6 analysts that rate American International Group a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Recommends

The average volume for American International Group has been 9.6 million shares per day over the past 30 days. American International Group has a market cap of $69.7 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.22 and a short float of 1.2% with 1.47 days to cover. Shares are down 10.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American International Group as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • AIG, with its decline in revenue, slightly underperformed the industry average of 15.7%. Since the same quarter one year prior, revenues fell by 18.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • AMERICAN INTERNATIONAL GROUP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AMERICAN INTERNATIONAL GROUP reported lower earnings of $5.21 versus $6.07 in the prior year. For the next year, the market is expecting a contraction of 19.2% in earnings ($4.21 versus $5.21).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Insurance industry. The net income has significantly decreased by 110.5% when compared to the same quarter one year ago, falling from $2,192.00 million to -$231.00 million.

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