Arthur J. Gallagher & Co. (NYSE:AJG) Hits New 12-Month Low - Here's What Happened

Key Points

• Arthur J. Gallagher & Co. (NYSE:AJG) hit a new 52-week low during trading, falling as low as $193.95 and closing well below its previous level. The stock was down about 2.8% on the session.
• Despite the recent weakness, Wall Street sentiment remains moderate: 11 analysts rate the stock a Buy, 8 rate it Hold, and the consensus price target is $268.00. Recent reports included a mix of neutral and overweight ratings, with some firms trimming price targets.
• The company recently beat quarterly EPS estimates with $4.47 per share, though revenue came in slightly below expectations. It also announced a quarterly dividend of $0.70 per share, while insiders sold shares in March and institutional ownership remains high at 85.53%.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $193.95 and last traded at $196.1540, with a volume of 71726 shares changing hands. The stock had previously closed at $197.40.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on AJG shares. Cantor Fitzgerald restated a "neutral" rating on shares of Arthur J. Gallagher & Co. in a research report on Friday, January 30th. UBS Group reduced their target price on shares of Arthur J. Gallagher & Co. from $285.00 to $283.00 and set a "neutral" rating on the stock in a research note on Monday, February 2nd. Barclays lifted their target price on shares of Arthur J. Gallagher & Co. from $262.00 to $275.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 8th. Jefferies Financial Group reduced their target price on shares of 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, Piper Sandler reduced their price target on shares of Arthur J. Gallagher & Co. from $226.00 to $211.00 and set a "neutral" rating on the stock in a research note on Friday, May 1st. Eleven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $268.00.

Arthur J. Gallagher & Co. Stock Down 2.8%

The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.51. The company has a market cap of $49.30 billion, a price-to-earnings ratio of 31.15, a PEG ratio of 1.01 and a beta of 0.54. The firm's fifty day simple moving average is $214.88 and its 200 day simple moving average is $236.01.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its earnings results on Thursday, April 30th. The financial services provider reported $4.47 EPS for the quarter, beating analysts' consensus estimates of $4.43 by $0.04. The firm had revenue of $4.71 billion for the quarter, compared to the consensus estimate of $4.73 billion. Arthur J. Gallagher & Co. had a net margin of 10.76% and a return on equity of 12.83%. The company's revenue was up 29.0% on a year-over-year basis. During the same period last year, the firm posted $3.67 EPS. Sell-side analysts predict that Arthur J. Gallagher & Co. will post 13.18 earnings per share for the current year.

Arthur J. Gallagher & Co. Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Investors of record on Friday, June 5th will be issued a $0.70 dividend. The ex-dividend date of this dividend is Friday, June 5th. This represents a $2.80 annualized dividend and a yield of 1.5%. Arthur J. Gallagher & Co.'s dividend payout ratio is currently 45.31%.

Insider Transactions at Arthur J. Gallagher & Co.

In other news, VP Christopher E. Mead sold 4,000 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $227.12, for a total value of $908,480.00. Following the completion of the sale, the vice president directly owned 19,306 shares of the company's stock, valued at $4,384,778.72. This represents a 17.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Scott R. Hudson sold 3,800 shares of the stock in a transaction that occurred 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 of the company's stock, valued at approximately $19,552,814.40. The trade was a 4.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.40% of the company's stock.

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

Several large investors have recently made changes to their positions in AJG. Kemnay Advisory Services Inc. acquired a new stake in shares of Arthur J. Gallagher & Co. in the 4th quarter valued at approximately $26,000. Cassaday & Co Wealth Management LLC acquired a new stake in Arthur J. Gallagher & Co. during the 1st quarter valued at $29,000. Physician Wealth Advisors Inc. lifted its holdings in Arthur J. Gallagher & Co. by 870.0% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 97 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 87 shares during the last quarter. MV Capital Management Inc. acquired a new stake in Arthur J. Gallagher & Co. during the 4th quarter valued at $34,000. Finally, Rakuten Securities Inc. lifted its holdings in Arthur J. Gallagher & Co. by 650.0% during the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 91 shares during the last quarter. Institutional investors and hedge funds 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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