AON (NYSE:AON) Shares Gap Up After Earnings Beat

Key Points

• Aon plc's shares surged, opening at $368.51 after a strong earnings announcement, with the last trade at $377.15.
• The company reported earnings of $3.49 per share for the quarter, exceeding expectations and showing a 10.5% year-over-year revenue increase.
• Aon declared a quarterly dividend of $0.745, with an annualized yield of 0.79%.
• Analysts maintain an average rating of "Hold" with a consensus price target of $403.00.

Aon plc (NYSE:AON - Get Free Report) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $356.61, but opened at $368.51. AON shares last traded at $377.15, with a volume of 279,529 shares traded.

The financial services provider reported $3.49 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.09. AON had a return on equity of 52.71% and a net margin of 15.58%. The business had revenue of $4.16 billion during the quarter, compared to the consensus estimate of $4.16 billion. During the same period in the previous year, the business earned $2.93 EPS. The business's quarterly revenue was up 10.5% on a year-over-year basis.

AON Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Friday, August 1st will be given a $0.745 dividend. This represents a $2.98 annualized dividend and a yield of 0.79%. The ex-dividend date is Friday, August 1st. AON's dividend payout ratio (DPR) is presently 25.38%.

Wall Street Analyst Weigh In

Several research firms have issued reports on AON. JPMorgan Chase & Co. boosted their target price on AON from $394.00 to $409.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 8th. Jefferies Financial Group boosted their target price on AON from $396.00 to $416.00 and gave the stock a "hold" rating in a research report on Friday, April 11th. Keefe, Bruyette & Woods dropped their target price on AON from $414.00 to $409.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 30th. The Goldman Sachs Group upgraded AON from a "neutral" rating to a "buy" rating and set a $408.00 target price on the stock in a research report on Tuesday, May 13th. Finally, Evercore ISI dropped their target price on AON from $420.00 to $398.00 and set an "outperform" rating on the stock in a research report on Monday, April 28th. One analyst has rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $403.00.

Hedge Funds Weigh In On AON

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its stake in shares of AON by 1.3% in the 1st quarter. Vanguard Group Inc. now owns 19,778,451 shares of the financial services provider's stock valued at $7,893,382,000 after purchasing an additional 258,699 shares during the last quarter. Geode Capital Management LLC raised its position in shares of AON by 14.5% during the fourth quarter. Geode Capital Management LLC now owns 4,949,919 shares of the financial services provider's stock valued at $1,773,165,000 after buying an additional 627,742 shares during the last quarter. Bank of New York Mellon Corp raised its position in shares of AON by 18.3% during the first quarter. Bank of New York Mellon Corp now owns 3,034,062 shares of the financial services provider's stock valued at $1,210,864,000 after buying an additional 469,238 shares during the last quarter. Polen Capital Management LLC raised its position in shares of AON by 318.1% during the first quarter. Polen Capital Management LLC now owns 3,007,719 shares of the financial services provider's stock valued at $1,200,350,000 after buying an additional 2,288,397 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of AON by 2.6% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,390,571 shares of the financial services provider's stock valued at $954,053,000 after buying an additional 61,350 shares during the last quarter. 86.14% of the stock is currently owned by hedge funds and other institutional investors.

AON Price Performance

The stock's 50-day moving average price is $358.07 and its 200 day moving average price is $370.48. The firm has a market cap of $81.50 billion, a price-to-earnings ratio of 32.14, a price-to-earnings-growth ratio of 2.13 and a beta of 0.84. The company has a quick ratio of 1.73, a current ratio of 1.73 and a debt-to-equity ratio of 2.26.

AON Company Profile

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.

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