Arthur J. Gallagher & Co. (NYSE:AJG) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Arthur J. Gallagher & Co. has an average analyst rating of “Moderate Buy”, with 11 buy ratings and 8 hold ratings across 19 brokerages. The average 1-year price target is $264.
• The company reported quarterly EPS of $4.47, slightly ahead of estimates, while revenue came in at $4.71 billion, just below expectations but up 29% year over year.
• Arthur J. Gallagher also announced a quarterly dividend of $0.70 per share, payable June 19, which equals an annualized yield of about 1.4%.

Shares of Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) have received an average recommendation of "Moderate Buy" from the nineteen brokerages that are covering the stock, MarketBeat.com reports. Eight analysts have rated the stock with a hold rating and eleven have issued a buy rating on the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $264.00.

A number of equities research analysts have issued reports on the company. Keefe, Bruyette & Woods cut their target price on Arthur J. Gallagher & Co. from $246.00 to $235.00 and set a "market perform" rating on the stock in a research note on Friday, May 1st. Wells Fargo & Company cut their target price on Arthur J. Gallagher & Co. from $273.00 to $266.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. Cantor Fitzgerald reiterated a "neutral" rating on shares of Arthur J. Gallagher & Co. in a research note on Friday, January 30th. Jefferies Financial Group cut their target price on Arthur J. Gallagher & Co. from $283.00 to $280.00 and set a "hold" rating on the stock in a research note on Monday, February 2nd. Finally, Mizuho cut their target price on Arthur J. Gallagher & Co. from $260.00 to $259.00 and set an "outperform" rating on the stock in a research note on Monday, April 13th.

Insiders Place Their Bets

In other Arthur J. Gallagher & Co. news, VP Scott R. Hudson sold 3,800 shares of the firm's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $227.57, for a total value of $864,766.00. Following the sale, the vice president directly owned 85,920 shares in the company, valued at approximately $19,552,814.40. This trade represents a 4.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Christopher E. Mead sold 4,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $227.12, for a total transaction of $908,480.00. Following the sale, the vice president owned 19,306 shares in the company, valued at approximately $4,384,778.72. This represents a 17.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Arthur J. Gallagher & Co.

A number of hedge funds and other institutional investors have recently modified their holdings of AJG. Norges Bank bought a new stake in shares of Arthur J. Gallagher & Co. during the fourth quarter valued at about $1,925,062,000. JPMorgan Chase & Co. raised its stake in shares of Arthur J. Gallagher & Co. by 19.6% during the third quarter. JPMorgan Chase & Co. now owns 20,338,533 shares of the financial services provider's stock valued at $6,299,674,000 after purchasing an additional 3,330,205 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its stake in shares of Arthur J. Gallagher & Co. by 123.5% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 5,887,538 shares of the financial services provider's stock valued at $1,523,636,000 after purchasing an additional 3,253,498 shares in the last quarter. Gtcr LLC bought a new stake in shares of Arthur J. Gallagher & Co. during the first quarter valued at about $514,112,000. Finally, Northwestern Mutual Wealth Management Co. raised its stake in shares of Arthur J. Gallagher & Co. by 9,244.9% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,053,636 shares of the financial services provider's stock valued at $272,670,000 after purchasing an additional 1,042,361 shares in the last quarter. 85.53% of the stock is currently owned by institutional investors.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG opened at $204.89 on Friday. The business's fifty day moving average price is $211.64 and its 200 day moving average price is $232.49. Arthur J. Gallagher & Co. has a 12-month low of $190.75 and a 12-month high of $351.23. The stock has a market capitalization of $52.64 billion, a PE ratio of 33.15, a price-to-earnings-growth ratio of 1.04 and a beta of 0.54. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.06 and a quick ratio of 1.06.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The financial services provider reported $4.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.43 by $0.04. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The firm had revenue of $4.71 billion for the quarter, compared to analysts' expectations of $4.73 billion. During the same period last year, the business posted $3.67 earnings per share. The firm's revenue for the quarter was up 29.0% on a year-over-year basis. Equities research analysts forecast that Arthur J. Gallagher & Co. will post 13.22 EPS for the current year.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, June 5th will be paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, June 5th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is presently 45.31%.

Arthur J. Gallagher & Co. Company Profile

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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