Key Points
- Insider sale: Arthur J. Gallagher CAO Richard Cary sold 3,000 shares on June 2 at an average price of $206.00, totaling $618,000. After the sale, he still held 47,819 shares, a 5.9% reduction in his ownership.
- Company performance: AJG recently reported quarterly EPS of $4.47, slightly ahead of estimates, while revenue came in at $4.71 billion, just below expectations. Revenue still rose 29% year over year.
- Dividend and outlook: The company announced a quarterly dividend of $0.70 per share, payable June 19, for an annualized yield of 1.4%. Analysts remain cautiously positive, with a consensus rating of Moderate Buy and an average price target of $264.00.
Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) CAO Richard Cary sold 3,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $206.00, for a total transaction of $618,000.00. Following the transaction, the chief accounting officer owned 47,819 shares of the company's stock, valued at $9,850,714. This represents a 5.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.
Arthur J. Gallagher & Co. Stock Down 0.2%
Shares of NYSE AJG opened at $205.79 on Wednesday. The stock has a market capitalization of $52.87 billion, a P/E ratio of 33.30, a P/E/G ratio of 1.04 and a beta of 0.52. The company has a 50-day moving average price of $211.03 and a 200-day moving average price of $230.45. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $351.23. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.06 and a quick ratio of 1.06.
Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The financial services provider reported $4.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.43 by $0.04. The firm had revenue of $4.71 billion during the quarter, compared to analysts' expectations of $4.73 billion. Arthur J. Gallagher & Co. had a net margin of 10.76% and a return on equity of 12.83%. The business's revenue was up 29.0% on a year-over-year basis. During the same period last year, the company earned $3.67 earnings per share. On average, equities research analysts forecast that Arthur J. Gallagher & Co. will post 13.26 EPS for the current fiscal year.
Arthur J. Gallagher & Co. Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, June 5th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is currently 45.31%.
Wall Street Analysts Forecast Growth
A number of research analysts have recently issued reports on AJG shares. BMO Capital Markets upgraded shares of Arthur J. Gallagher & Co. from a "market perform" rating to an "outperform" rating and lifted their price objective for the company from $275.00 to $278.00 in a report on Tuesday, March 24th. Truist Financial dropped their price target on shares of Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating on the stock in a research report on Friday, May 1st. Piper Sandler dropped their price target on shares of Arthur J. Gallagher & Co. from $226.00 to $211.00 and set a "neutral" rating on the stock in a research report on Friday, May 1st. Wells Fargo & Company dropped their price target on shares of Arthur J. Gallagher & Co. from $273.00 to $266.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Finally, Morgan Stanley dropped their price target on shares of Arthur J. Gallagher & Co. from $265.00 to $240.00 and set an "overweight" rating on the stock in a research report on Thursday, May 21st. Eleven analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $264.00.
Get Our Latest Analysis on AJG
Institutional Inflows and Outflows
Large investors have recently made changes to their positions in the company. Jump Financial LLC bought a new stake in Arthur J. Gallagher & Co. in the second quarter worth about $2,825,000. Qube Research & Technologies Ltd bought a new stake in Arthur J. Gallagher & Co. in the second quarter worth about $3,429,000. Treasurer of the State of North Carolina raised its position in Arthur J. Gallagher & Co. by 5.3% in the second quarter. Treasurer of the State of North Carolina now owns 118,467 shares of the financial services provider's stock worth $37,924,000 after acquiring an additional 5,947 shares during the period. Peapack Gladstone Financial Corp raised its position in Arthur J. Gallagher & Co. by 2,919.2% in the second quarter. Peapack Gladstone Financial Corp now owns 19,987 shares of the financial services provider's stock worth $6,398,000 after acquiring an additional 19,325 shares during the period. Finally, Armistice Capital LLC bought a new stake in Arthur J. Gallagher & Co. in the second quarter worth about $412,000. 85.53% of the stock is owned by institutional investors.
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.
Further Reading
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