American International Group (AIG) Showing Unusual Social Activity Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

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 10x the normal benchmarked social activity for this time of the day compared to its average of 12.58 mentions/day.
  • AIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $464.7 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 0.9%. AIG has a PE ratio of 10.8. Currently there are 8 analysts that rate American International Group a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for American International Group has been 8.2 million shares per day over the past 30 days. American International Group has a market cap of $76.7 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.36 and a short float of 1% with 1.69 days to cover. Shares are up 1.1% year-to-date as of the close of trading on Thursday.

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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 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 ratings report include:
  • 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 3.2%. 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.

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