Arthur J. Gallagher & Co. (NYSE:AJG) Given New $246.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut its price target on Arthur J. Gallagher & Co. to $246 (from $249) while maintaining a "market perform" rating, implying roughly a 12.9% upside from the prior close.
• Analyst sentiment is mixed-but-leaning-positive: the consensus rating is "Moderate Buy" with a $273.65 average price target, based on 10 Buy and 9 Hold ratings and notable targets ranging as high as $300.
• Q4 results showed a slight EPS beat ($2.38 vs. $2.35) and revenue up 33.9% YoY but just below estimates ($3.57B vs. $3.61B); shares traded at $217.95 on the report and insiders have recently reduced positions through sales.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) had its price objective lowered by investment analysts at Keefe, Bruyette & Woods from $249.00 to $246.00 in a report released on Tuesday,Benzinga reports. The brokerage currently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price objective would suggest a potential upside of 12.87% from the company's previous close.

A number of other brokerages have also recently weighed in on AJG. Wall Street Zen raised shares of Arthur J. Gallagher & Co. from a "sell" rating to a "hold" rating in a research report on Saturday, February 21st. The Goldman Sachs Group reiterated a "buy" rating and set a $292.00 target price on shares of Arthur J. Gallagher & Co. in a report on Wednesday, January 7th. BMO Capital Markets raised Arthur J. Gallagher & Co. from a "market perform" rating to an "outperform" rating and boosted their target price for the company from $275.00 to $278.00 in a research note on Tuesday, March 24th. Wells Fargo & Company dropped their price target on Arthur J. Gallagher & Co. from $298.00 to $273.00 and set an "overweight" rating on the stock in a research report on Thursday, March 19th. Finally, Morgan Stanley set a $300.00 price objective on Arthur J. Gallagher & Co. in a research report on Friday, December 19th. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $273.65.

Arthur J. Gallagher & Co. Trading Down 0.6%

Shares of Arthur J. Gallagher & Co. stock traded down $1.32 during trading on Tuesday, hitting $217.95. 699,113 shares of the company were exchanged, compared to its average volume of 2,400,059. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.06 and a quick ratio of 1.06. The firm has a market capitalization of $56.03 billion, a P/E ratio of 35.43, a price-to-earnings-growth ratio of 1.08 and a beta of 0.68. The firm's fifty day moving average price is $220.81 and its 200 day moving average price is $250.48. Arthur J. Gallagher & Co. has a 1-year low of $195.00 and a 1-year high of $351.23.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The financial services provider reported $2.38 earnings per share for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. The business had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.61 billion. Arthur J. Gallagher & Co. had a net margin of 11.84% and a return on equity of 12.13%. Arthur J. Gallagher & Co.'s revenue for the quarter was up 33.9% on a year-over-year basis. During the same period last year, the company posted $1.12 EPS. As a group, sell-side analysts expect that Arthur J. Gallagher & Co. will post 11.54 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, VP Christopher E. Mead sold 4,000 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $227.12, for a total value of $908,480.00. Following the sale, the vice president directly owned 19,306 shares in the company, valued at $4,384,778.72. This trade represents a 17.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Scott R. Hudson sold 3,800 shares of the stock in a transaction on Friday, March 6th. The stock was sold at an average price of $227.57, for a total transaction of $864,766.00. Following the transaction, the vice president owned 85,920 shares of the company's stock, valued at $19,552,814.40. The trade was a 4.24% decrease in their position. The SEC filing for this sale provides additional information. 1.60% of the stock is currently owned by company insiders.

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

Several hedge funds have recently modified their holdings of AJG. Jump Financial LLC acquired a new position in Arthur J. Gallagher & Co. during the second quarter valued at approximately $2,825,000. Gamco Investors INC. ET AL raised its stake in shares of Arthur J. Gallagher & Co. by 9.6% during the 2nd quarter. Gamco Investors INC. ET AL now owns 25,728 shares of the financial services provider's stock worth $8,236,000 after purchasing an additional 2,252 shares in the last quarter. Gabelli Funds LLC boosted its holdings in shares of Arthur J. Gallagher & Co. by 16.9% in the 2nd quarter. Gabelli Funds LLC now owns 20,925 shares of the financial services provider's stock valued at $6,699,000 after buying an additional 3,031 shares during the last quarter. Cerity Partners LLC increased its holdings in Arthur J. Gallagher & Co. by 7.7% during the second quarter. Cerity Partners LLC now owns 38,502 shares of the financial services provider's stock worth $12,325,000 after buying an additional 2,751 shares during the last quarter. Finally, Bank of Nova Scotia raised its position in Arthur J. Gallagher & Co. by 1.0% during the second quarter. Bank of Nova Scotia now owns 26,553 shares of the financial services provider's stock worth $8,500,000 after acquiring an additional 252 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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