Arthur J. Gallagher & Co. (NYSE:AJG) Stock Price Target Raised at Mizuho

Key Points

• Mizuho raised Arthur J. Gallagher’s price target from $271 to $302 while maintaining an “outperform” rating, implying 12.69% upside. Analysts overall rate the stock “Moderate Buy,” with an average target of $283.89.
• Third-quarter adjusted EPS came in slightly above estimates at $3.00, while revenue rose 19.6% year over year to $3.92 billion, although revenue fell short of consensus expectations.
• AJG shares trade near their 52-week high at roughly 44 times earnings. Recent insider selling and the company’s substantial debt represent potential headwinds, despite strong institutional ownership and ongoing acquisition activity.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) had its price objective lifted by analysts at Mizuho from $271.00 to $302.00 in a report issued on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the financial services provider's stock. Mizuho's target price would suggest a potential upside of 12.69% from the company's current price.

AJG has been the topic of a number of other research reports. Wells Fargo & Company cut their target price on shares of Arthur J. Gallagher & Co. from $291.00 to $284.00 and set an "overweight" rating on the stock in a research note on Monday, October 12th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $296.00 price target on shares of Arthur J. Gallagher & Co. in a research report on Friday. Citigroup raised their price objective on Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. Jefferies Financial Group reduced their price objective on Arthur J. Gallagher & Co. from $300.00 to $295.00 and set a "buy" rating on the stock in a research note on Wednesday, September 30th. Finally, Seaport Research Partners raised Arthur J. Gallagher & Co. to a "buy" rating in a research report on Wednesday, October 7th. Seventeen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $283.89.

Arthur J. Gallagher & Co. Stock Up 2.9%

Shares of NYSE:AJG opened at $267.99 on Friday. The stock has a 50-day simple moving average of $248.07 and a 200-day simple moving average of $232.49. The stock has a market capitalization of $68.69 billion, a P/E ratio of 44.44, a PEG ratio of 1.49 and a beta of 0.55. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $272.80. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.05 and a current ratio of 1.05.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The financial services provider reported $3.00 EPS for the quarter, beating the consensus estimate of $2.99 by $0.01. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.28%. The firm had revenue of $3.92 billion for the quarter, compared to analyst estimates of $3.98 billion. During the same quarter last year, the firm posted $2.32 earnings per share. Arthur J. Gallagher & Co.'s revenue for the quarter was up 19.6% compared to the same quarter last year. Equities analysts forecast that Arthur J. Gallagher & Co. will post 13.16 earnings per share for the current year.

Insider Activity

In other news, VP Christopher E. Mead sold 3,500 shares of Arthur J. Gallagher & Co. stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $257.02, for a total transaction of $899,570.00. Following the sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, General Counsel Walter D. Bay sold 12,000 shares of the business's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $270.08, for a total value of $3,240,960.00. Following the completion of the transaction, the general counsel owned 71,292 shares in the company, valued at approximately $19,254,543.36. This trade represents a 14.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 28,500 shares of company stock valued at $7,562,950. Corporate insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Arthur J. Gallagher & Co.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Principal Financial Group Inc. grew its position in shares of Arthur J. Gallagher & Co. by 14.4% during the 1st 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 last quarter. Gtcr LLC bought a new position in Arthur J. Gallagher & Co. in the first quarter worth about $514,112,000. Janus Henderson Group PLC lifted its holdings in Arthur J. Gallagher & Co. by 5.4% in 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 last quarter. Bank of America Corp DE boosted its stake in Arthur J. Gallagher & Co. by 23.0% in the first quarter. Bank of America Corp DE now owns 1,854,488 shares of the financial services provider's stock valued at $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 boosted its stake in Arthur J. Gallagher & Co. by 0.3% in the second 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 during the period. 85.53% of the stock is currently owned by hedge funds and other institutional investors.

Key Arthur J. Gallagher & Co. News

Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

• Positive Sentiment: Third-quarter adjusted earnings were $3.00 per share, slightly above the $2.99 consensus estimate and up from $2.32 a year earlier. Revenue increased 19.6% year over year to approximately $3.92 billion. Arthur J. Gallagher Reports Third-Quarter Results
• Positive Sentiment: Underlying operating momentum was solid: Brokerage and Risk Management revenue grew 18%, including 5% organic growth. Gallagher also completed five acquisitions expected to add about $102 million in annualized revenue. Gallagher Reports Third-Quarter Revenue
• Positive Sentiment: The company repurchased roughly 400,000 shares for about $100 million during the quarter, providing an additional potential boost to per-share results. Evercore ISI also raised its price target to $307 from $297, signaling continued analyst confidence. Evercore Raises Gallagher Price Target
• Neutral Sentiment: Reported net earnings rose to $406 million from $273 million, while diluted GAAP EPS increased to $1.55 from $1.04. However, the company continues to carry substantial borrowings, including $9.55 billion of public debt and $2.68 billion of private-placement debt. Gallagher Third-Quarter Financial Results
• Negative Sentiment: Quarterly revenue fell short of Wall Street expectations of approximately $3.98 billion, and one estimate placed EPS just below consensus at $3.00 versus $3.01. The shortfall may limit near-term upside after the stock’s strong advance. Gallagher Misses Q3 Estimates
• Negative Sentiment: AJG trades at roughly 44 times earnings, making execution and continued acquisition growth particularly important. Recent insider activity also showed sales without reported purchases, a potential but limited sentiment headwind.

About Arthur J. Gallagher & Co.

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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