Aon plc (NYSE:AON) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst consensus is “Moderate Buy”: Of 17 brokerages covering Aon, 12 recommend buying the stock and five rate it a hold. The average 12-month price target is $410.75, above the reported opening price of $346.83.
• Aon slightly exceeded quarterly EPS expectations: The company reported $3.81 in earnings per share versus the $3.80 consensus estimate, while revenue of $4.25 billion fell short of the $4.28 billion forecast but increased 2.2% year over year.
• Aon paid a quarterly dividend of $0.82 per share: The annualized dividend is $3.28, representing a 0.9% yield and an 18.08% payout ratio. Institutional investors own approximately 86.14% of the company.

Aon plc (NYSE:AON - Get Free Report) has received an average recommendation of "Moderate Buy" from the seventeen brokerages that are currently covering the company, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold rating and twelve have issued a buy rating on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $410.75.

AON has been the subject of a number of recent research reports. Wall Street Zen downgraded AON from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Wells Fargo & Company increased their price target on shares of AON from $406.00 to $419.00 and gave the company an "overweight" rating in a research report on Thursday, July 30th. JPMorgan Chase & Co. boosted their price objective on shares of AON from $396.00 to $412.00 and gave the stock an "overweight" rating in a report on Monday, July 13th. Cantor Fitzgerald upped their price objective on shares of AON from $416.00 to $445.00 and gave the company an "overweight" rating in a research note on Thursday, July 9th. Finally, Citigroup increased their target price on shares of AON from $420.00 to $435.00 and gave the company a "buy" rating in a report on Thursday, July 30th.

AON Stock Down 2.5%

AON opened at $346.83 on Tuesday. The stock has a market cap of $73.57 billion, a PE ratio of 19.12, a P/E/G ratio of 1.84 and a beta of 0.69. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. AON has a 52 week low of $304.59 and a 52 week high of $382.34. The business's fifty day simple moving average is $348.97 and its 200 day simple moving average is $333.20.

AON (NYSE:AON - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.80 by $0.01. The firm had revenue of $4.25 billion during the quarter, compared to analyst estimates of $4.28 billion. AON had a return on equity of 42.13% and a net margin of 22.27%.The company's revenue was up 2.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.49 earnings per share. As a group, research analysts expect that AON will post 19.05 earnings per share for the current fiscal year.

AON Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Monday, August 3rd were paid a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Monday, August 3rd. AON's dividend payout ratio (DPR) is 18.08%.

Insider Activity at AON

In other news, General Counsel Darren Zeidel sold 1,950 shares of AON stock in a transaction dated Friday, July 17th. The stock was sold at an average price of $372.05, for a total value of $725,497.50. Following the transaction, the general counsel owned 13,404 shares in the company, valued at approximately $4,986,958.20. The trade was a 12.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders sold a total of 4,450 shares of company stock valued at $1,659,242 in the last quarter. 1.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AON

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Wealth Watch Advisors INC bought a new stake in AON in the third quarter valued at approximately $25,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of AON in the fourth quarter worth approximately $27,000. Kemnay Advisory Services Inc. purchased a new position in shares of AON in the fourth quarter worth $29,000. Strive Asset Management LLC bought a new stake in AON during the 3rd quarter valued at $35,000. Finally, Cornerstone Financial Management LLC purchased a new stake in AON during the 4th quarter valued at $37,000. 86.14% of the stock is currently owned by institutional investors.

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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