Key Points
- Insider sale: VP Christopher Mead sold 3,500 AJG shares at an average price of $257.02, generating approximately $899,570. His remaining stake fell 13.61% to 22,223 shares.
- Quarterly performance: Arthur J. Gallagher reported adjusted earnings of $2.84 per share, exceeding estimates by $0.03, while revenue rose 24.3% year over year to $3.95 billion, slightly below expectations.
- Investor outlook: The company declared a quarterly dividend of $0.70 per share, and analysts maintained a “Moderate Buy” consensus with an average price target of $290.28. Institutional investors own 85.53% of the stock.
Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) VP Christopher Mead sold 3,500 shares of the firm's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $257.02, for a total transaction of $899,570.00. Following the transaction, the vice president directly owned 22,223 shares of the company's stock, valued at $5,711,755.46. The trade was a 13.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website.
Arthur J. Gallagher & Co. Stock Performance
Shares of Arthur J. Gallagher & Co. stock opened at $259.45 on Friday. The stock has a market cap of $66.50 billion, a price-to-earnings ratio of 43.03, a P/E/G ratio of 1.58 and a beta of 0.50. Arthur J. Gallagher & Co. has a twelve month low of $190.75 and a twelve month high of $313.55. The company's fifty day moving average is $243.60 and its 200 day moving average is $224.76. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.50.
Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.81 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%.The business had revenue of $3.95 billion during the quarter, compared to analyst estimates of $4.01 billion. During the same period last year, the company earned $2.33 EPS. Arthur J. Gallagher & Co.'s revenue for the quarter was up 24.3% compared to the same quarter last year. Sell-side analysts forecast that Arthur J. Gallagher & Co. will post 13.27 EPS for the current year.
Arthur J. Gallagher & Co. Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Tuesday, September 8th will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Tuesday, September 8th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is 46.43%.
Institutional Inflows and Outflows
Institutional investors have recently added to or reduced their stakes in the company. Natural Investments LLC boosted its holdings in Arthur J. Gallagher & Co. by 27.2% in the second quarter. Natural Investments LLC now owns 1,216 shares of the financial services provider's stock worth $279,000 after acquiring an additional 260 shares in the last quarter. Moore Capital Management LP acquired a new stake in Arthur J. Gallagher & Co. in the second quarter valued at approximately $4,248,000. Sigma Planning Corp bought a new stake in shares of Arthur J. Gallagher & Co. during the second quarter valued at approximately $329,000. Meiji Yasuda Life Insurance Co raised its position in shares of Arthur J. Gallagher & Co. by 27.6% during the second quarter. Meiji Yasuda Life Insurance Co now owns 10,443 shares of the financial services provider's stock worth $2,397,000 after purchasing an additional 2,260 shares during the period. Finally, Cullinan Associates Inc. bought a new position in shares of Arthur J. Gallagher & Co. in the 2nd quarter worth $4,017,000. 85.53% of the stock is owned by institutional investors and hedge funds.
Analysts Set New Price Targets
AJG has been the topic of several analyst reports. Argus upped their target price on Arthur J. Gallagher & Co. from $267.00 to $300.00 and gave the company a "buy" rating in a report on Monday. Keefe, Bruyette & Woods boosted their price target on shares of Arthur J. Gallagher & Co. from $261.00 to $271.00 and gave the stock a "market perform" rating in a research report on Friday, July 31st. Morgan Stanley upped their price objective on shares of Arthur J. Gallagher & Co. from $270.00 to $290.00 and gave the company an "overweight" rating in a research note on Wednesday. Piper Sandler increased their price objective on shares of Arthur J. Gallagher & Co. from $276.00 to $287.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Finally, Cantor Fitzgerald lifted their target price on shares of Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Fourteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Arthur J. Gallagher & Co. presently has an average rating of "Moderate Buy" and a consensus target price of $290.28.
Read Our Latest Research Report on Arthur J. Gallagher & Co.
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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