AON (NYSE:AON) Stock Gets Price Target Trim from UBS Group

Key Points

• UBS Group lowered AON’s price target from $387 to $356 while maintaining a “Neutral” rating, implying approximately 6.7% upside from the prior close.
• Analyst sentiment remains mixed: 12 analysts rate AON a Buy, seven a Hold and three a Sell, resulting in a consensus “Hold” rating and average price target of $368.76.
• AON recently exceeded quarterly expectations, reporting $3.36 in earnings per share versus the $3.30 consensus estimate and $4.10 billion in revenue; shares traded at $333.74, up $12.06.

AON (NYSE:AON - Get Free Report) had its price objective lowered by equities research analysts at UBS Group from $387.00 to $356.00 in a report released on Monday, Benzinga reports. The brokerage presently has a "neutral" rating on the financial services provider's stock. UBS Group's price target points to a potential upside of 6.67% from the company's previous close.

A number of other equities research analysts have also recently commented on the stock. Mizuho decreased their target price on shares of AON from $366.00 to $324.00 and set an "outperform" rating on the stock in a research note on Wednesday, October 7th. Roth Capital set a $380.00 price target on shares of AON and gave the stock a "buy" rating in a research report on Tuesday, September 1st. Evercore reduced their price objective on shares of AON from $423.00 to $375.00 in a research note on Thursday, October 8th. Keefe, Bruyette & Woods decreased their price objective on shares of AON from $417.00 to $342.00 and set an "outperform" rating on the stock in a research report on Monday, October 12th. Finally, Barclays lowered their target price on shares of AON from $382.00 to $317.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 7th. Twelve equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $368.76.

AON Stock Performance

NYSE:AON traded up $12.06 during mid-day trading on Monday, hitting $333.74. 1,679,249 shares of the company traded hands, compared to its average volume of 1,545,975. The company has a quick ratio of 4.72, a current ratio of 4.72 and a debt-to-equity ratio of 2.58. The stock's fifty day moving average price is $302.17 and its 200-day moving average price is $326.08. The firm has a market cap of $70.81 billion, a price-to-earnings ratio of 18.28, a price-to-earnings-growth ratio of 1.69 and a beta of 0.63. AON has a one year low of $266.33 and a one year high of $382.34.

AON (NYSE:AON - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $3.36 EPS for the quarter, topping the consensus estimate of $3.30 by $0.06. The firm had revenue of $4.10 billion for the quarter, compared to the consensus estimate of $4.08 billion. AON had a return on equity of 40.46% and a net margin of 22.24%. The business's revenue for the quarter was up 2.6% compared to the same quarter last year. During the same quarter last year, the company earned $3.05 earnings per share. Research analysts anticipate that AON will post 18.55 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Lester Knight acquired 20,000 shares of the business's stock in a transaction on Wednesday, September 2nd. The stock was acquired at an average cost of $327.48 per share, with a total value of $6,549,600.00. Following the acquisition, the director directly owned 163,000 shares in the company, valued at $53,379,240. This represents a 13.99% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 1.00% of the stock is owned by insiders.

Hedge Funds Weigh In On AON

Several hedge funds have recently modified their holdings of the stock. Robeco Institutional Asset Management B.V. increased its holdings in AON by 11,179.6% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 4,026,135 shares of the financial services provider's stock valued at $1,114,313,000 after acquiring an additional 3,990,441 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of AON by 16.3% during the 1st quarter. Bank of America Corp DE now owns 1,582,680 shares of the financial services provider's stock valued at $510,857,000 after purchasing an additional 222,092 shares during the last quarter. Amundi boosted its holdings in shares of AON by 23.5% during the 1st quarter. Amundi now owns 1,502,890 shares of the financial services provider's stock valued at $485,103,000 after purchasing an additional 285,549 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of AON by 20.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,253,769 shares of the financial services provider's stock valued at $404,709,000 after purchasing an additional 213,051 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in shares of AON by 74.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 797,418 shares of the financial services provider's stock valued at $257,391,000 after purchasing an additional 340,866 shares in the last quarter. Hedge funds and other institutional investors own 86.14% of the company's stock.

AON News Roundup

Here are the key news stories impacting AON this week:

• Positive Sentiment: Wells Fargo raised its AON price target from $323 to $364 and maintained an “Overweight” rating, implying further upside based on the cited share price. Wells Fargo raises Aon price target
• Positive Sentiment: Cantor Fitzgerald increased its target from $400 to $410 and reiterated an “Overweight” rating, reflecting confidence in Aon’s earnings and long-term growth prospects. Cantor Fitzgerald raises Aon price target
• Positive Sentiment: Raymond James upgraded AON to “Market Perform,” a less bearish stance that removes a potential overhang on the stock, although it is not an outright buy recommendation. Raymond James upgrades Aon
• Positive Sentiment: Aon executive Andy Hofmann identified data centers and MGAs as additional avenues for expansion, potentially supporting future insurance demand, fee revenue and diversification. Aon growth opportunities in data centers and MGAs
• Neutral Sentiment: AON reached the record date for its $0.820-per-share quarterly dividend, reinforcing shareholder returns but providing limited new information about the company’s outlook. Aon quarterly dividend record date
• Negative Sentiment: Aon estimates European windstorms Austen and Boelo could generate hundreds of millions of dollars in insured losses, highlighting elevated catastrophe exposure for the insurance industry. However, the event may also increase demand for risk advisory and reinsurance services. Aon estimate of European windstorm losses

AON Company Profile

Aon plc is a global professional services firm that helps organizations manage risk, make informed decisions and improve workforce outcomes. Its services span commercial risk, health, retirement and investments, and data and analytics.

The company provides insurance brokerage and risk-management services, including coverage placement, claims support, risk transfer and consulting. Through its reinsurance business, Aon also serves insurers and other organizations seeking to manage catastrophe, capital and underwriting risks.

Aon's human capital offerings include employee benefits consulting, retirement advisory services, talent and compensation consulting, and health and workforce solutions.

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