AON (NYSE:AON) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded AON from “hold” to “sell,” contrasting with the broader analyst consensus of “Moderate Buy” and an average price target of $399.12.
• AON shares opened at $322.57, below their 50-day average of $353.58, while the company’s latest quarterly results narrowly beat EPS expectations but missed revenue estimates.
• Director Lester B. Knight purchased 20,000 shares for approximately $6.55 million, although other insiders sold shares during the past 90 days; institutional investors own 86.14% of the stock.

AON (NYSE:AON - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Sunday, Wall Street Zen reports.

AON has been the topic of several other research reports. Citigroup increased their price target on shares of AON from $420.00 to $435.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. TD Cowen reissued a "buy" rating on shares of AON in a research report on Tuesday. JPMorgan Chase & Co. boosted their price target on AON from $396.00 to $412.00 and gave the stock an "overweight" rating in a research report on Monday, July 13th. Barclays increased their price objective on AON from $372.00 to $382.00 and gave the company an "equal weight" rating in a report on Tuesday, July 7th. Finally, UBS Group reaffirmed a "neutral" rating on shares of AON in a research report on Monday, August 31st. Twelve equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $399.12.

AON Stock Performance

Shares of NYSE AON opened at $322.57 on Friday. AON has a 1 year low of $304.59 and a 1 year high of $382.34. The stock has a fifty day moving average price of $353.58 and a two-hundred day moving average price of $334.15. The company has a debt-to-equity ratio of 1.34, a quick ratio of 1.54 and a current ratio of 1.54. The firm has a market cap of $68.42 billion, a P/E ratio of 17.78, a PEG ratio of 1.71 and a beta of 0.66.

AON (NYSE:AON - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 EPS for the quarter, beating the consensus estimate of $3.80 by $0.01. The business had revenue of $4.25 billion during the quarter, compared to analysts' expectations of $4.28 billion. AON had a return on equity of 42.13% and a net margin of 22.27%.The firm's quarterly revenue was up 2.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.49 EPS. Research analysts forecast that AON will post 18.99 EPS for the current fiscal year.

Insider Buying and Selling at AON

In other news, Director Lester B. Knight purchased 20,000 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were purchased at an average cost of $327.48 per share, for a total transaction of $6,549,600.00. Following the completion of the purchase, the director directly owned 163,000 shares of the company's stock, valued at approximately $53,379,240. The trade was a 13.99% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Darren Zeidel sold 1,900 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total value of $717,744.00. Following the completion of the transaction, the general counsel directly owned 11,504 shares of the company's stock, valued at approximately $4,345,751.04. This trade represents a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 4,450 shares of company stock worth $1,659,242. 1.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. California State Teachers Retirement System increased its holdings in AON by 32,835.5% in the 2nd quarter. California State Teachers Retirement System now owns 101,761,829 shares of the financial services provider's stock valued at $33,753,381,000 after buying an additional 101,452,856 shares during the period. Capital World Investors increased its stake in AON by 1.5% in the fourth quarter. Capital World Investors now owns 12,252,904 shares of the financial services provider's stock valued at $4,323,850,000 after acquiring an additional 176,207 shares during the period. State Street Corp raised its position in AON by 1.2% in the third quarter. State Street Corp now owns 9,229,464 shares of the financial services provider's stock worth $3,291,048,000 after purchasing an additional 105,154 shares in the last quarter. Dodge & Cox lifted its stake in AON by 126.6% during the fourth quarter. Dodge & Cox now owns 7,852,456 shares of the financial services provider's stock worth $2,770,975,000 after purchasing an additional 4,387,773 shares during the period. Finally, Geode Capital Management LLC boosted its holdings in AON by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 5,141,363 shares of the financial services provider's stock valued at $1,810,726,000 after purchasing an additional 28,066 shares in the last quarter. 86.14% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting AON

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon director Lester Knight purchased 20,000 shares for approximately $6.55 million, increasing his direct holdings by nearly 14%. The sizable insider purchase may signal confidence that the recent weakness has created attractive value. Aon director stock purchase filing
• Positive Sentiment: Aon executives highlighted strong demand for insurance-linked securities and expect continued growth through year-end and into 2027. A more flexible reinsurance market, supported by approximately $800 billion of capital, could increase transaction activity and benefit Aon’s brokerage and advisory operations. Strong ILS demand and continued growth expected
• Positive Sentiment: The company urged insurers to use record reinsurance capacity and third-party capital to support growth, reinforcing the potential for expanding demand for Aon’s capital-markets and risk-transfer services. Aon urges insurers to use reinsurance and third-party capital
• Positive Sentiment: Aon launched a defined-benefit pension “run-on” solution aimed at smaller schemes, broadening its retirement-services offering and potentially creating additional recurring consulting revenue. Aon launches run-on solution
• Neutral Sentiment: Chief Executive Greg Case will speak at the KBW Insurance Conference on September 10, giving investors a potential catalyst for updates on the USI transaction, organic growth and capital allocation. Aon to speak at the KBW Insurance Conference
• Negative Sentiment: Analysis of Aon’s planned $17 billion USI acquisition questioned whether roughly $395 million in expected synergies will adequately offset the risks of another debt-funded megadeal. Leverage and integration concerns may be weighing on valuation. Analysis of Aon’s USI acquisition
• Negative Sentiment: Mizuho lowered its price target while maintaining an outperform rating, adding near-term pressure amid broader uncertainty over valuation and the acquisition’s financing. This caution contrasts with the more bullish view from Keefe, Bruyette & Woods. Mizuho forecast for AON

About AON

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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