NEW YORK (TheStreet) -- American International Group (AIG) - Get Report shares closed up 1.2% to $54.68 in intraday trading on Monday before afternoon reports that Chairman Robert S. "Steve" Miller will be stepping down in July, according to the Wall Street Journal.
The company has not settled on a replacement as of yet but it is believed that the next chairman currently serves on the company's board of directors, according to the paper's sources. Miller is expected to remain on the company's board after stepping down as chairman.
Miller took control of AIG's board in 2010 as the company was in the middle of recovering from nearly being bankrupt following the financial collapse of 2008. He was previously CEO of auto-parts company Delphi (DLPH) - Get Report from 2005-2007.
Shares are flat in after-hours trading.
TheStreet Ratings team rates AMERICAN INTERNATIONAL GROUP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN INTERNATIONAL GROUP (AIG) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. 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 analysis by TheStreet Ratings Team goes as follows:
- Although AIG's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of 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 5.5%. Since the same quarter one year prior, revenues slightly dropped by 10.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for AMERICAN INTERNATIONAL GROUP is rather low; currently it is at 20.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.35% trails that of the industry average.
- Net operating cash flow has significantly decreased to $650.00 million or 65.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: AIG Ratings Report