AON (NYSE:AON) Shares Gap Down Following Weak Earnings

Aon plc (NYSE:AON - Get Free Report) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $365.05, but opened at $341.50. AON shares last traded at $328.35, with a volume of 714,975 shares.

The financial services provider reported $5.67 EPS for the quarter, missing the consensus estimate of $6.04 by ($0.37). AON had a net margin of 16.91% and a return on equity of 70.84%. The business had revenue of $4.73 billion during the quarter, compared to analysts' expectations of $4.83 billion. During the same quarter in the previous year, the business posted $5.66 EPS. The company's quarterly revenue was up 16.2% on a year-over-year basis.

AON Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 15th. Investors of record on Thursday, May 1st will be given a dividend of $0.745 per share. This represents a $2.98 dividend on an annualized basis and a yield of 0.85%. This is a boost from AON's previous quarterly dividend of $0.68. The ex-dividend date is Thursday, May 1st. AON's dividend payout ratio is 25.38%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Keefe, Bruyette & Woods decreased their target price on AON from $414.00 to $409.00 and set an "outperform" rating for the company in a research report on Wednesday. Wells Fargo & Company increased their price objective on shares of AON from $410.00 to $445.00 and gave the company an "overweight" rating in a research report on Monday, February 3rd. Piper Sandler raised shares of AON from a "neutral" rating to an "overweight" rating and reduced their target price for the stock from $384.00 to $378.00 in a research report on Monday. JPMorgan Chase & Co. lifted their price target on shares of AON from $394.00 to $409.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 8th. Finally, Barclays decreased their price objective on shares of AON from $430.00 to $415.00 and set an "overweight" rating for the company in a research report on Wednesday. One research analyst has rated the stock with a sell rating, seven have given a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $390.67.

Institutional Investors Weigh In On AON

Institutional investors have recently made changes to their positions in the stock. Charles Schwab Investment Management Inc. boosted its stake in shares of AON by 2.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,237,784 shares of the financial services provider's stock valued at $444,563,000 after purchasing an additional 31,021 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of AON by 27.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 96,548 shares of the financial services provider's stock valued at $34,676,000 after acquiring an additional 20,942 shares in the last quarter. Aviva PLC boosted its position in shares of AON by 19.0% during the 4th quarter. Aviva PLC now owns 255,760 shares of the financial services provider's stock worth $91,859,000 after purchasing an additional 40,850 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in shares of AON by 5.8% in the 4th quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,533 shares of the financial services provider's stock worth $9,530,000 after purchasing an additional 1,451 shares in the last quarter. Finally, Proficio Capital Partners LLC increased its position in shares of AON by 43,000.8% during the fourth quarter. Proficio Capital Partners LLC now owns 390,924 shares of the financial services provider's stock worth $140,404,000 after acquiring an additional 390,017 shares in the last quarter. 86.14% of the stock is currently owned by institutional investors.

AON Stock Performance

The firm has a market cap of $75.89 billion, a P/E ratio of 27.75, a PEG ratio of 2.12 and a beta of 0.82. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 2.58. The company's 50-day moving average is $384.64 and its two-hundred day moving average is $375.65.

About AON

Aon Plc engages in the provision of risk, health, and wealth solutions. It focuses on risk capital including claim management, reinsurance, risk analysis, management, retention, and transfer; and human capital involving analytics, health and benefits, investments, pensions and retirement, talent and rewards, and workplace wellbeing.