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

Key Points

• Arthur J. Gallagher & Co. (AJG) has an overall analyst rating of "Moderate Buy", based on 19 covering firms, with 12 buy ratings and 7 hold ratings. The average 12-month price target is about $274.18.
• Recent analyst updates were mostly positive, including Wells Fargo raising its target to $299 and Mizuho lifting its target to $287. However, Wolfe Research downgraded the stock to peer perform, showing sentiment is not uniformly bullish.
• The company continues to expand through acquisitions, announcing the purchase of Med James, Inc. AJG also recently reported earnings that beat expectations on EPS, while revenue came in slightly below estimates.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) has been given an average rating of "Moderate Buy" by the nineteen ratings firms that are presently covering the company, MarketBeat.com reports. Seven research analysts have rated the stock with a hold recommendation and twelve have assigned a buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $274.1765.

A number of equities research analysts recently commented on the stock. Wolfe Research downgraded shares of Arthur J. Gallagher & Co. from an "outperform" rating to a "peer perform" rating in a report on Thursday. Wells Fargo & Company increased their price target on shares of Arthur J. Gallagher & Co. from $271.00 to $299.00 and gave the company an "overweight" rating in a research report on Thursday. Truist Financial cut their price objective on Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating for the company in a research report on Friday, May 1st. Morgan Stanley upped their target price on Arthur J. Gallagher & Co. from $240.00 to $255.00 and gave the company an "overweight" rating in a research note on Monday, July 6th. Finally, BMO Capital Markets raised Arthur J. Gallagher & Co. from a "market perform" rating to an "outperform" rating and raised their price target for the stock from $275.00 to $278.00 in a research report on Tuesday, March 24th.

Arthur J. Gallagher & Co. News Roundup

Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

• Positive Sentiment: Wells Fargo raised its price target on Arthur J. Gallagher & Co. to $299 from $271 and kept an overweight rating, signaling confidence in further upside for the insurance broker. Benzinga article
• Positive Sentiment: Mizuho also lifted its target to $287 from $261 and maintained an outperform rating, reinforcing a constructive view on AJG's growth prospects. Benzinga article
• Positive Sentiment: AJG announced the acquisition of Med James, Inc., adding to its long-running acquisition-driven expansion strategy. PR Newswire article
• Positive Sentiment: Management also announced the date for its second-quarter 2026 earnings release and conference call, keeping investors focused on upcoming results. PR Newswire article
• Neutral Sentiment: Zacks said AJG trades at a discount to the industry on a valuation basis, but noted the company still faces margin and leverage challenges despite solid organic growth and acquisition activity. Zacks article
• Neutral Sentiment: MarketWatch noted the stock underperformed peers in recent trading, suggesting AJG has lagged some competitors even as broader analyst sentiment remains mixed. MarketWatch article
• Negative Sentiment: Wolfe Research downgraded Arthur J. Gallagher & Co. to peer perform from outperform, which likely weighed on sentiment and helped offset the bullish target increases. Downgrade article

Arthur J. Gallagher & Co. Stock Up 0.0%

AJG opened at $253.16 on Monday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market cap of $65.04 billion, a price-to-earnings ratio of 40.96, a PEG ratio of 1.31 and a beta of 0.50. Arthur J. Gallagher & Co. has a one year low of $190.75 and a one year high of $316.71. The business's fifty day moving average is $216.10 and its two-hundred day moving average is $225.63.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The financial services provider reported $4.47 earnings per share for the quarter, beating analysts' consensus estimates 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 business had revenue of $4.71 billion during the quarter, compared to analysts' expectations of $4.73 billion. During the same quarter last year, the business posted $3.67 earnings per share. The business's revenue for the quarter was up 29.0% on a year-over-year basis. Analysts anticipate that Arthur J. Gallagher & Co. will post 13.22 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Friday, June 5th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is currently 45.31%.

Insider Transactions at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, CAO Richard C. Cary sold 3,000 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $206.00, for a total value of $618,000.00. Following the transaction, the chief accounting officer directly owned 47,819 shares in the company, valued at approximately $9,850,714. This represents a 5.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Arthur J. Gallagher & Co.

Several institutional investors and hedge funds have recently modified their holdings of AJG. Vanguard Group Inc. raised its holdings in Arthur J. Gallagher & Co. by 0.7% in the 4th quarter. Vanguard Group Inc. now owns 31,390,446 shares of the financial services provider's stock valued at $8,123,534,000 after acquiring an additional 217,136 shares during the last quarter. Capital World Investors boosted its holdings in shares of Arthur J. Gallagher & Co. by 7.0% during the fourth quarter. Capital World Investors now owns 12,613,371 shares of the financial services provider's stock worth $3,264,359,000 after purchasing an additional 830,252 shares during the last quarter. State Street Corp grew its position in shares of Arthur J. Gallagher & Co. by 0.6% in the fourth quarter. State Street Corp now owns 10,953,598 shares of the financial services provider's stock valued at $2,834,682,000 after purchasing an additional 62,518 shares during the period. Norges Bank acquired a new position in Arthur J. Gallagher & Co. in the fourth quarter valued at $1,925,062,000. Finally, T. Rowe Price Investment Management Inc. increased its stake in Arthur J. Gallagher & Co. by 123.5% in 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 during the last quarter. Hedge funds and other 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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