The company is selling stake to Blackstone (BX)
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.