Arthur J. Gallagher & Co. (NYSE:AJG) Given New $290.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley raised its price target for Arthur J. Gallagher & Co. from $270 to $290 while maintaining an “overweight” rating, implying 16.8% upside from the prior close.
• Analyst sentiment remains positive, with 14 Buy ratings and five Holds; the stock carries a “Moderate Buy” consensus rating and an average target of $290.28.
• Gallagher’s latest quarterly results beat EPS expectations at $2.84 versus $2.81, while revenue rose 24.3% year over year to $3.95 billion, though it came in below the $4.01 billion consensus estimate.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) had its price objective hoisted by investment analysts at Morgan Stanley from $270.00 to $290.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has an "overweight" rating on the financial services provider's stock. Morgan Stanley's target price suggests a potential upside of 16.80% from the company's previous close.

A number of other research analysts have also weighed in on AJG. Royal Bank Of Canada raised their price objective on shares of Arthur J. Gallagher & Co. from $300.00 to $310.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Wells Fargo & Company decreased their target price on shares of Arthur J. Gallagher & Co. from $299.00 to $296.00 and set an "overweight" rating for the company in a research report on Monday, August 3rd. Weiss Ratings upgraded shares of Arthur J. Gallagher & Co. from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, July 13th. Jefferies Financial Group upgraded Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and lifted their price target for the company from $235.00 to $265.00 in a research note on Thursday, June 11th. Finally, Truist Financial boosted their price objective on Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the stock a "hold" rating in a report on Friday, July 31st. Fourteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Arthur J. Gallagher & Co. presently has an average rating of "Moderate Buy" and an average price target of $290.28.

Arthur J. Gallagher & Co. Trading Up 0.1%

NYSE AJG opened at $248.29 on Wednesday. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.50. Arthur J. Gallagher & Co. has a 52 week low of $190.75 and a 52 week high of $313.55. The business has a 50 day moving average price of $242.09 and a 200-day moving average price of $224.61. The company has a market cap of $63.64 billion, a price-to-earnings ratio of 41.18, a P/E/G ratio of 1.29 and a beta of 0.50.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.81 by $0.03. The company had revenue of $3.95 billion for the quarter, compared to analysts' expectations of $4.01 billion. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%.Arthur J. Gallagher & Co.'s quarterly revenue was up 24.3% compared to the same quarter last year. During the same period last year, the business earned $2.33 EPS. As a group, equities analysts expect that Arthur J. Gallagher & Co. will post 13.27 earnings per share for the current fiscal year.

Insider Buying and Selling at Arthur J. Gallagher & Co.

In related news, CAO Richard C. Cary sold 3,000 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $206.00, for a total transaction 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. The trade was a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.40% of the stock is owned by insiders.

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

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Jump Financial LLC purchased a new position in Arthur J. Gallagher & Co. in the second quarter worth $2,825,000. Qube Research & Technologies Ltd purchased a new stake in shares of Arthur J. Gallagher & Co. during the 2nd quarter valued at $3,429,000. Treasurer of the State of North Carolina raised its stake in shares of Arthur J. Gallagher & Co. by 5.3% during the 2nd quarter. Treasurer of the State of North Carolina now owns 118,467 shares of the financial services provider's stock worth $37,924,000 after purchasing an additional 5,947 shares during the period. Peapack Gladstone Financial Corp boosted its holdings in shares of Arthur J. Gallagher & Co. by 2,919.2% in the 2nd quarter. Peapack Gladstone Financial Corp now owns 19,987 shares of the financial services provider's stock worth $6,398,000 after buying an additional 19,325 shares during the last quarter. Finally, Armistice Capital LLC bought a new position in Arthur J. Gallagher & Co. during the second quarter valued at about $412,000. Hedge funds and other institutional investors own 85.53% of the company's stock.

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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