Key Points
- VP Scott Hudson sold 3,800 shares on March 6 at an average of $227.57 for a total of $864,766, trimming his stake by 4.24% to 85,920 shares valued at about $19.55 million; the sale was disclosed in an SEC filing.
- Dividend increase: Arthur J. Gallagher raised its quarterly dividend to $0.70 (from $0.65), payable March 20 to holders of record March 6, implying a $2.80 annualized dividend and a 1.3% yield.
- Q4 results showed EPS of $2.38 (beat by $0.03) and revenue up 33.9% year-over-year but slightly below estimates; the stock traded down ~4.5% to $217.87 and the Street maintains a consensus "Hold" rating with a $281.76 target.
Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) VP Scott Hudson sold 3,800 shares of the company's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $227.57, for a total transaction of $864,766.00. Following the completion of the transaction, the vice president owned 85,920 shares in the company, valued at approximately $19,552,814.40. This represents a 4.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website.
Arthur J. Gallagher & Co. Trading Down 4.5%
Arthur J. Gallagher & Co. stock opened at $217.87 on Tuesday. Arthur J. Gallagher & Co. has a 12 month low of $195.00 and a 12 month high of $351.23. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.52. The stock has a market cap of $56.02 billion, a P/E ratio of 35.43, a P/E/G ratio of 1.11 and a beta of 0.67. The company's fifty day simple moving average is $238.98 and its 200-day simple moving average is $262.54.
Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The financial services provider reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.35 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 12.13% and a net margin of 11.84%.The business had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.61 billion. During the same period last year, the company earned $1.12 earnings per share. Arthur J. Gallagher & Co.'s quarterly revenue was up 33.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.
Arthur J. Gallagher & Co. Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 1.3%. The ex-dividend date is Friday, March 6th. This is a positive change from Arthur J. Gallagher & Co.'s previous quarterly dividend of $0.65. Arthur J. Gallagher & Co.'s dividend payout ratio is currently 45.53%.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Kemnay Advisory Services Inc. bought a new stake in Arthur J. Gallagher & Co. in the fourth quarter valued at about $26,000. Physician Wealth Advisors Inc. boosted its holdings in Arthur J. Gallagher & Co. by 870.0% during the third quarter. Physician Wealth Advisors Inc. now owns 97 shares of the financial services provider's stock worth $30,000 after buying an additional 87 shares during the last quarter. MV Capital Management Inc. acquired a new position in shares of Arthur J. Gallagher & Co. during the 4th quarter worth about $34,000. Rakuten Securities Inc. increased its stake in shares of Arthur J. Gallagher & Co. by 650.0% in the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 91 shares during the last quarter. Finally, Financial Life Planners acquired a new stake in shares of Arthur J. Gallagher & Co. in the 3rd quarter valued at approximately $39,000. 85.53% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In
A number of equities research analysts have weighed in on the stock. Wall Street Zen upgraded shares of Arthur J. Gallagher & Co. from a "sell" rating to a "hold" rating in a research note on Saturday, February 21st. Morgan Stanley set a $300.00 target price on shares of Arthur J. Gallagher & Co. in a research note on Friday, December 19th. Jefferies Financial Group decreased their price target on Arthur J. Gallagher & Co. from $283.00 to $280.00 and set a "hold" rating on the stock in a research report on Monday, February 2nd. Wolfe Research set a $289.00 target price on Arthur J. Gallagher & Co. and gave the stock an "outperform" rating in a report on Wednesday, December 17th. Finally, BMO Capital Markets lowered Arthur J. Gallagher & Co. from an "outperform" rating to a "market perform" rating and lowered their target price for the company from $289.00 to $275.00 in a research note on Tuesday, January 13th. Seven analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $281.76.
Get Our Latest Analysis on AJG
About Arthur J. Gallagher & Co.
(
Get Free Report)
Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.
The company's core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.
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