Aon plc (NYSE:AON) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Aon has a consensus analyst rating of “Moderate Buy”, with 14 buy ratings and 4 hold ratings across 18 brokerages. The average 12-month target price is about $397.88.
• The company recently beat quarterly earnings expectations, reporting EPS of $6.48 versus $6.37 expected, while revenue of $5.03 billion also topped estimates. Revenue rose 6.4% year over year, and analysts now expect full-year EPS of 19.04.
• Aon also raised its quarterly dividend to $0.82 per share from $0.75, implying a 1.0% dividend yield. The company’s payout ratio remains relatively low at 16.36%.

Aon plc (NYSE:AON - Get Free Report) has received an average recommendation of "Moderate Buy" from the eighteen brokerages that are currently covering the company, Marketbeat reports. Four investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating on the company. The average 12 month target price among analysts that have covered the stock in the last year is $397.8750.

AON has been the subject of several research reports. UBS Group reissued a "neutral" rating and issued a $385.00 price target on shares of AON in a research report on Monday, February 2nd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of AON in a research note on Tuesday, April 21st. Citigroup boosted their target price on shares of AON from $402.00 to $412.00 and gave the stock a "buy" rating in a research report on Tuesday, February 3rd. TD Cowen restated a "buy" rating on shares of AON in a report on Monday, March 16th. Finally, Bank of America upgraded AON from a "neutral" rating to an "outperform" rating and cut their price target for the company from $398.00 to $397.00 in a research note on Friday, February 27th.

AON Stock Performance

Shares of AON stock opened at $312.60 on Friday. The business has a 50-day simple moving average of $324.93 and a 200 day simple moving average of $336.36. AON has a one year low of $304.59 and a one year high of $381.00. The company has a debt-to-equity ratio of 1.36, a current ratio of 1.95 and a quick ratio of 2.03. The firm has a market capitalization of $66.77 billion, a price-to-earnings ratio of 17.16, a PEG ratio of 1.66 and a beta of 0.72.

AON (NYSE:AON - Get Free Report) last announced its quarterly earnings data on Saturday, May 2nd. The financial services provider reported $6.48 EPS for the quarter, beating analysts' consensus estimates of $6.37 by $0.11. AON had a return on equity of 43.50% and a net margin of 22.54%.The firm had revenue of $5.03 billion during the quarter, compared to analysts' expectations of $4.97 billion. During the same quarter last year, the firm posted $5.67 earnings per share. The company's revenue for the quarter was up 6.4% compared to the same quarter last year. On average, research analysts anticipate that AON will post 19.04 earnings per share for the current fiscal year.

AON Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be given a dividend of $0.82 per share. The ex-dividend date of this dividend is Friday, May 1st. This is a positive change from AON's previous quarterly dividend of $0.75. This represents a $3.28 annualized dividend and a dividend yield of 1.0%. AON's payout ratio is presently 16.36%.

Insider Buying and Selling at AON

In related news, General Counsel Darren Zeidel sold 5,040 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $325.79, for a total value of $1,641,981.60. Following the completion of the sale, the general counsel directly owned 20,254 shares of the company's stock, valued at approximately $6,598,550.66. This represents a 19.93% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Lester B. Knight acquired 4,000 shares of the business's stock in a transaction on Tuesday, February 10th. The shares were purchased 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 in the company, valued at approximately $45,651,320. The trade was a 2.88% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On AON

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Westside Investment Management Inc. grew its holdings 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 valued at $25,000 after acquiring an additional 35 shares in the last quarter. Wealth Watch Advisors INC bought a new stake in AON during the third quarter worth $25,000. University of Texas Texas AM Investment Management Co. purchased a new position in AON in the fourth quarter worth $27,000. Kemnay Advisory Services Inc. bought a new position in AON in the 4th quarter valued at $29,000. Finally, Eagle Bay Advisors LLC purchased a new stake in shares of AON during the 4th quarter valued at $30,000. Hedge funds and other institutional investors own 86.14% of the company's stock.

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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