Aon plc (NYSE:AON) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus: Eighteen analysts give AON an average "Moderate Buy" rating (14 Buy, 4 Hold) with a 12‑month target of $401.81, roughly 24% above the recent open near $323, implying notable analyst upside.
• Earnings and dividend: AON beat EPS estimates ($4.85 vs. $4.75) but missed revenue ($4.30B vs. $4.38B), reported strong profitability (ROE 45.23%, net margin 21.51%), and raised its quarterly dividend to $0.82 ($3.28 annualized, 1.0% yield; ex‑dividend May 1).
• Insider and institutional activity: Insider moves were mixed (General Counsel sold 5,040 shares; a director bought 4,000), insider ownership is about 1.1% while institutional investors hold roughly 86.1% of the stock.

Shares of Aon plc (NYSE:AON - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the eighteen analysts that are covering the firm, MarketBeat reports. Four investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $401.8125.

Several equities research analysts recently weighed in on the company. Morgan Stanley set a $400.00 price target on AON in a research note on Tuesday, December 16th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of AON in a research note on Monday, December 29th. Barclays reduced their price target on AON from $381.00 to $372.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 8th. Jefferies Financial Group reissued a "buy" rating and set a $408.00 price objective on shares of AON in a research note on Monday, February 2nd. Finally, Wells Fargo & Company cut their price objective on shares of AON from $443.00 to $402.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th.

AON Price Performance

AON opened at $323.05 on Wednesday. The company has a debt-to-equity ratio of 1.55, a quick ratio of 2.03 and a current ratio of 2.03. AON has a 52-week low of $304.59 and a 52-week high of $386.45. The stock has a market capitalization of $69.22 billion, a PE ratio of 18.98, a price-to-earnings-growth ratio of 1.79 and a beta of 0.83. The stock's 50 day moving average price is $325.19 and its 200-day moving average price is $340.05.

AON (NYSE:AON - Get Free Report) last posted its earnings results on Friday, January 30th. The financial services provider reported $4.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.75 by $0.10. AON had a return on equity of 45.23% and a net margin of 21.51%.The firm had revenue of $4.30 billion for the quarter, compared to analysts' expectations of $4.38 billion. During the same period in the previous year, the firm earned $4.42 earnings per share. The business's revenue was up 3.7% compared to the same quarter last year. On average, equities research analysts predict that AON will post 17.21 EPS for the current year.

AON Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be paid a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Friday, May 1st. This is an increase from AON's previous quarterly dividend of $0.75. AON's dividend payout ratio (DPR) is currently 17.51%.

Insider Buying and Selling

In other AON news, General Counsel Darren Zeidel sold 5,040 shares of AON stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $325.79, for a total transaction of $1,641,981.60. Following the completion of the transaction, the general counsel owned 20,254 shares in the company, valued at approximately $6,598,550.66. The trade was a 19.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Lester B. Knight bought 4,000 shares of the company's stock in a transaction on Tuesday, February 10th. The stock was bought at an average cost of $319.24 per share, for a total transaction of $1,276,960.00. Following the completion of the acquisition, the director directly owned 143,000 shares of the company's stock, valued at approximately $45,651,320. This represents a 2.88% increase in their position. The SEC filing for this purchase provides additional information. 1.10% of the stock is owned by company insiders.

Institutional Trading of AON

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Westside Investment Management Inc. lifted its stake in shares of AON by 100.0% in the third quarter. Westside Investment Management Inc. now owns 70 shares of the financial services provider's stock worth $25,000 after buying an additional 35 shares in the last quarter. Wealth Watch Advisors INC bought a new stake in shares of AON during the third quarter valued at approximately $25,000. University of Texas Texas AM Investment Management Co. purchased a new position in AON in the 4th quarter worth approximately $27,000. Heartwood Wealth Advisors LLC bought a new position in AON in the 3rd quarter valued at approximately $29,000. Finally, Kemnay Advisory Services Inc. bought a new position in AON in the 4th quarter valued at approximately $29,000. 86.14% of the stock is currently owned by institutional investors.

AON Company Profile

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.

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