Arthur J. Gallagher & Co. (NYSE:AJG) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised Arthur J. Gallagher’s price target from $284 to $312 and maintained an “overweight” rating, implying 12.86% potential upside from the prior close.
• Analyst sentiment remains broadly positive, with 14 Buy ratings and six Holds; MarketBeat reports a consensus “Moderate Buy” rating and an average target price of $288.79.
• Gallagher reported quarterly EPS of $3.00, slightly above estimates, while revenue rose 19.6% year over year to $3.92 billion. Shares opened at $276.46, near their 52-week high of $277.45.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) had its price target hoisted by Wells Fargo & Company from $284.00 to $312.00 in a research report issued on Monday, Benzinga reports. The firm presently has an "overweight" rating on the financial services provider's stock. Wells Fargo & Company's price target points to a potential upside of 12.86% from the company's previous close.

Several other research analysts have also issued reports on the company. Citigroup lowered Arthur J. Gallagher & Co. from a "buy" rating to a "neutral" rating and raised their price target for the stock from $285.00 to $300.00 in a research report on Monday. Royal Bank Of Canada upped their price objective on Arthur J. Gallagher & Co. from $290.00 to $315.00 and gave the company an "outperform" rating in a report on Friday. Oppenheimer initiated coverage on Arthur J. Gallagher & Co. in a report on Wednesday, October 7th. They set a "market perform" rating on the stock. The Goldman Sachs Group restated a "buy" rating and set a $296.00 target price on shares of Arthur J. Gallagher & Co. in a research report on Friday. Finally, UBS Group upped their price target on Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Fourteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $288.79.

Arthur J. Gallagher & Co. Trading Up 0.1%

Shares of NYSE AJG opened at $276.46 on Monday. The company's 50 day simple moving average is $248.41 and its 200 day simple moving average is $232.55. Arthur J. Gallagher & Co. has a fifty-two week low of $190.75 and a fifty-two week high of $277.45. The firm has a market capitalization of $70.86 billion, a P/E ratio of 42.27, a P/E/G ratio of 1.58 and a beta of 0.47. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.05 and a quick ratio of 1.05.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its earnings results on Thursday, October 29th. The financial services provider reported $3.00 EPS for the quarter, topping analysts' consensus estimates of $2.99 by $0.01. The firm had revenue of $3.92 billion during the quarter, compared to analyst estimates of $3.98 billion. Arthur J. Gallagher & Co. had a net margin of 10.39% and a return on equity of 13.90%. The business's quarterly revenue was up 19.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.32 EPS. On average, analysts predict that Arthur J. Gallagher & Co. will post 13.15 EPS for the current year.

Insiders Place Their Bets

In other Arthur J. Gallagher & Co. news, CAO Richard Cary sold 1,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $252.86, for a total transaction of $252,860.00. Following the transaction, the chief accounting officer directly owned 46,819 shares in the company, valued at approximately $11,838,652.34. The trade was a 2.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Christopher Mead sold 3,500 shares of the business's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $257.02, for a total value of $899,570.00. Following the completion of the transaction, the vice president directly owned 22,223 shares of the company's stock, valued at approximately $5,711,755.46. The trade was a 13.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 28,500 shares of company stock worth $7,562,950. 1.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Arthur J. Gallagher & Co.

Several institutional investors and hedge funds have recently modified their holdings of AJG. Principal Financial Group Inc. boosted its holdings in shares of Arthur J. Gallagher & Co. by 14.4% in the first quarter. Principal Financial Group Inc. now owns 3,242,088 shares of the financial services provider's stock valued at $702,182,000 after buying an additional 409,145 shares during the period. Gtcr LLC bought a new stake in shares of Arthur J. Gallagher & Co. during the first quarter worth $514,112,000. Janus Henderson Group PLC raised its holdings in shares of Arthur J. Gallagher & Co. by 5.4% during the first quarter. Janus Henderson Group PLC now owns 1,970,990 shares of the financial services provider's stock worth $426,887,000 after acquiring an additional 101,431 shares during the period. Bank of America Corp DE raised its holdings in shares of Arthur J. Gallagher & Co. by 23.0% during the first quarter. Bank of America Corp DE now owns 1,854,488 shares of the financial services provider's stock worth $401,645,000 after acquiring an additional 346,409 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Arthur J. Gallagher & Co. by 0.3% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,453,774 shares of the financial services provider's stock valued at $333,743,000 after acquiring an additional 3,905 shares in the last quarter. 85.53% of the stock is currently owned by institutional investors and hedge funds.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The firm helps businesses, public entities and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, wholesale brokerage, reinsurance brokerage, claims administration and risk management consulting. Gallagher places commercial and personal insurance coverage and provides services related to property and casualty risks, health care, benefits, and other specialized insurance needs.

Founded in 1927 by Arthur J.

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