Arthur J. Gallagher & Co. (NYSE:AJG) Downgraded to Peer Perform Rating by Wolfe Research

Key Points

• Wolfe Research downgraded Arthur J. Gallagher & Co. (NYSE:AJG) from “outperform” to “peer perform,” signaling a more cautious near-term view on the stock.
• Analyst opinions are mixed overall: Citigroup raised AJG to “buy,” while other firms such as Truist and Weiss maintained more conservative views. The stock still carries a Moderate Buy consensus with a $271.18 average price target.
• AJG recently posted better-than-expected earnings, with EPS of $4.47 versus $4.43 expected, and revenue up 29% year over year. The company also reported insider selling, including a June 2 sale by CAO Richard C. Cary.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) was downgraded by equities researchers at Wolfe Research from an "outperform" rating to a "peer perform" rating in a research report issued on Thursday, MarketBeat.com reports.

Several other brokerages have also commented on AJG. Citigroup upgraded Arthur J. Gallagher & Co. from a "neutral" rating to a "buy" rating and decreased their target price for the stock from $280.00 to $250.00 in a research report on Wednesday, May 6th. Weiss Ratings restated a "hold (c-)" rating on shares of Arthur J. Gallagher & Co. in a research note on Monday, June 15th. Truist Financial lowered their target price on shares of Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, May 1st. Wells Fargo & Company dropped their target price on shares of Arthur J. Gallagher & Co. from $273.00 to $266.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of Arthur J. Gallagher & Co. from $242.00 to $261.00 and gave the company a "market perform" rating in a report on Wednesday. Twelve equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $271.18.

Arthur J. Gallagher & Co. Price Performance

AJG opened at $256.73 on Thursday. The company has a market capitalization of $65.95 billion, a P/E ratio of 41.54, a PEG ratio of 1.29 and a beta of 0.50. The company has a 50-day moving average of $214.46 and a 200-day moving average of $225.67. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.06 and a current ratio of 1.06. Arthur J. Gallagher & Co. has a 1-year low of $190.75 and a 1-year high of $316.89.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The financial services provider reported $4.47 EPS for the quarter, topping analysts' consensus estimates of $4.43 by $0.04. The business had revenue of $4.71 billion during the quarter, compared to the consensus estimate of $4.73 billion. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The company's revenue for the quarter was up 29.0% compared to the same quarter last year. During the same period last year, the firm earned $3.67 earnings per share. Equities analysts expect that Arthur J. Gallagher & Co. will post 13.23 EPS for the current fiscal year.

Insider Activity at Arthur J. Gallagher & Co.

In other news, CAO Richard C. Cary sold 3,000 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total transaction of $618,000.00. Following the sale, the chief accounting officer owned 47,819 shares of the company's stock, valued at approximately $9,850,714. The trade was a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Kemnay Advisory Services Inc. acquired a new stake in Arthur J. Gallagher & Co. in the fourth quarter worth about $26,000. Axiom Investment Management LLC bought a new stake in shares of Arthur J. Gallagher & Co. during the 1st quarter worth about $28,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Arthur J. Gallagher & Co. in the 1st quarter worth approximately $29,000. MV Capital Management Inc. bought a new position in shares of Arthur J. Gallagher & Co. in the fourth quarter valued at approximately $34,000. Finally, Rakuten Securities Inc. boosted its holdings in shares of Arthur J. Gallagher & Co. by 650.0% in the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 91 shares in the last quarter. Institutional investors own 85.53% of the company's stock.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company's core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.

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