Arthur J. Gallagher & Co. (NYSE:AJG) Price Target Raised to $261.00 at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised Arthur J. Gallagher & Co.’s price target from $242 to $261, while keeping a market perform rating. The new target implies about 2.44% upside from the prior close.
• Analyst sentiment remains generally constructive, with 13 Buy ratings and 6 Hold ratings overall. MarketBeat shows a consensus Moderate Buy rating and an average price target of $267.12.
• The company recently reported better-than-expected earnings of $4.47 per share on revenue of $4.71 billion, with revenue up 29% year over year. Shares opened at $254.78, and the stock has a market cap of about $65.45 billion.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) had its target price upped by investment analysts at Keefe, Bruyette & Woods from $242.00 to $261.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' target price would suggest a potential upside of 2.44% from the stock's previous close.

Several other research analysts have also weighed in on the stock. Truist Financial cut their price objective on shares of Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating on the stock in a report on Friday, May 1st. Royal Bank Of Canada initiated coverage on shares of Arthur J. Gallagher & Co. in a research report on Tuesday, March 17th. They set an "outperform" rating and a $260.00 price target for the company. Jefferies Financial Group raised shares of Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and increased their price target for the stock from $235.00 to $265.00 in a research note on Thursday, June 11th. Barclays boosted their price objective on shares of Arthur J. Gallagher & Co. from $275.00 to $292.00 and gave the company an "overweight" rating in a research note on Tuesday. Finally, UBS Group restated a "buy" rating on shares of Arthur J. Gallagher & Co. in a report on Thursday, June 18th. Thirteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, Arthur J. Gallagher & Co. currently has an average rating of "Moderate Buy" and a consensus price target of $267.12.

Arthur J. Gallagher & Co. Price Performance

AJG stock opened at $254.78 on Wednesday. The stock has a market capitalization of $65.45 billion, a price-to-earnings ratio of 41.23, a price-to-earnings-growth ratio of 1.27 and a beta of 0.50. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.51. Arthur J. Gallagher & Co. has a 52-week low of $190.75 and a 52-week high of $316.89. The stock's fifty day simple moving average is $213.63 and its 200-day simple moving average is $225.64.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its earnings results on Thursday, April 30th. The financial services provider reported $4.47 earnings per share for the quarter, topping the consensus estimate 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 return on equity of 12.83% and a net margin of 10.76%.The firm's revenue for the quarter was up 29.0% compared to the same quarter last year. During the same period in the prior year, the business posted $3.67 earnings per share. Equities research analysts expect that Arthur J. Gallagher & Co. will post 13.23 EPS for the current year.

Insiders Place Their Bets

In related news, CAO Richard C. Cary sold 3,000 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total value of $618,000.00. Following the completion of the sale, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.40% of the company's stock.

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

Several institutional investors and hedge funds have recently modified their holdings of AJG. IFP Advisors Inc boosted its holdings in Arthur J. Gallagher & Co. by 1.4% in the 3rd quarter. IFP Advisors Inc now owns 3,064 shares of the financial services provider's stock worth $949,000 after acquiring an additional 41 shares during the period. Ritholtz Wealth Management increased its stake in Arthur J. Gallagher & Co. by 0.4% during the 4th quarter. Ritholtz Wealth Management now owns 10,061 shares of the financial services provider's stock worth $2,604,000 after buying an additional 45 shares during the period. CYBER HORNET ETFs LLC lifted its holdings in Arthur J. Gallagher & Co. by 7.8% in the 4th quarter. CYBER HORNET ETFs LLC now owns 634 shares of the financial services provider's stock worth $164,000 after buying an additional 46 shares in the last quarter. SC&H Financial Advisors Inc. boosted its position in Arthur J. Gallagher & Co. by 5.8% in the 4th quarter. SC&H Financial Advisors Inc. now owns 862 shares of the financial services provider's stock valued at $223,000 after buying an additional 47 shares during the last quarter. Finally, Allen Capital Group LLC boosted its position in Arthur J. Gallagher & Co. by 2.5% in the 4th quarter. Allen Capital Group LLC now owns 1,895 shares of the financial services provider's stock valued at $490,000 after buying an additional 47 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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