Arthur J. Gallagher & Co. (NYSE:AJG) Price Target Raised to $310.00

Key Points

• Royal Bank of Canada raised Arthur J. Gallagher’s price target to $310 from $300 while maintaining an “outperform” rating, implying approximately 23% upside from the reported share price. The analyst consensus remains “Moderate Buy,” with an average target of $285.29.
• Gallagher’s quarterly adjusted EPS of $2.84 beat estimates, and revenue increased 24.3% year over year to $3.95 billion. However, revenue fell short of expectations, while reported net income and GAAP EPS declined amid higher expenses and lower interest income.
• The stock traded at $251.83, below its one-year high of $313.55, while institutional investors held approximately 85.5% of outstanding shares. The company also repurchased about $170 million of stock and declared a $0.70 quarterly dividend.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) had its target price boosted by equities research analysts at Royal Bank Of Canada from $300.00 to $310.00 in a report released on Friday,Benzinga reports. The brokerage presently has an "outperform" rating on the financial services provider's stock. Royal Bank Of Canada's price target would suggest a potential upside of 23.10% from the stock's current price.

Other equities analysts have also issued reports about the company. Mizuho upped their target price on Arthur J. Gallagher & Co. from $287.00 to $300.00 and gave the company an "outperform" rating in a research note on Friday. Wells Fargo & Company lifted their price objective on Arthur J. Gallagher & Co. from $271.00 to $299.00 and gave the company an "overweight" rating in a report on Thursday, July 9th. Cantor Fitzgerald upped their price objective on Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the company a "neutral" rating in a report on Thursday, July 9th. Piper Sandler boosted their target price on Arthur J. Gallagher & Co. from $276.00 to $287.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, Barclays lifted their price objective on shares of Arthur J. Gallagher & Co. from $275.00 to $292.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 7th. Thirteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Arthur J. Gallagher & Co. has a consensus rating of "Moderate Buy" and an average price target of $285.29.

Arthur J. Gallagher & Co. Price Performance

AJG traded down $4.63 during trading on Friday, hitting $251.83. 687,304 shares of the company traded hands, compared to its average volume of 2,065,871. The stock's 50-day simple moving average is $230.78 and its two-hundred day simple moving average is $224.91. The company has a market cap of $64.70 billion, a PE ratio of 40.78, a P/E/G ratio of 1.39 and a beta of 0.50. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.51. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $313.55.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.81 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The company had revenue of $3.95 billion for the quarter, compared to analyst estimates of $4.01 billion. During the same quarter last year, the company posted $2.33 earnings per share. The business's quarterly revenue was up 24.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Arthur J. Gallagher & Co. will post 13.22 earnings per share for the current fiscal year.

Insider Activity at Arthur J. Gallagher & Co.

In other news, CAO Richard C. Cary sold 3,000 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Tuesday, June 2nd. The shares were 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 $9,850,714. The trade was a 5.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 1.40% of the company's stock.

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

Institutional investors and hedge funds have recently bought and sold shares of the stock. Kemnay Advisory Services Inc. purchased a new stake in shares of Arthur J. Gallagher & Co. in the fourth quarter valued at approximately $26,000. Axiom Investment Management LLC purchased a new stake in Arthur J. Gallagher & Co. during the 1st quarter worth approximately $28,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Arthur J. Gallagher & Co. in the 1st quarter valued at $29,000. MV Capital Management Inc. acquired a new stake in shares of Arthur J. Gallagher & Co. in the fourth quarter valued at approximately $34,000. Finally, Rakuten Securities Inc. grew its position in shares of Arthur J. Gallagher & Co. by 650.0% during the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock worth $34,000 after acquiring an additional 91 shares during the last quarter. 85.53% of the stock is currently owned by hedge funds and other institutional investors.

Arthur J. Gallagher & Co. News Roundup

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

• Positive Sentiment: Adjusted earnings of $2.84 per share matched or slightly exceeded consensus expectations, while revenue rose approximately 24% year over year to about $3.95 billion. Combined Brokerage and Risk Management revenue also increased 24%, supported by 6% organic growth and acquisitions. AJG Q2 Earnings Meet Estimates, Revenues Miss on Higher Expenses
• Positive Sentiment: Analysts raised their price targets after the report. Truist lifted its target to $265 from $225 while maintaining a Hold rating, and Keefe, Bruyette & Woods raised its target to $271 from $261 with a Market Perform rating. The revisions indicate improved earnings expectations, although neither firm currently recommends buying the shares. Arthur J. Gallagher Analysts Boost Their Forecasts After Q2 Earnings
• Neutral Sentiment: Gallagher repurchased roughly 900,000 shares for approximately $170 million during the quarter and declared a regular quarterly dividend of $0.70 per share, offering ongoing shareholder returns but limited near-term support for the stock.
• Negative Sentiment: Revenue came in below the roughly $4.01 billion analyst estimate, with higher expenses and lower interest income weighing on results. Reported net income declined to $324 million from $368 million a year earlier, while diluted GAAP EPS fell to $1.25 from $1.40, despite the stronger adjusted EPS figure. Arthur J. Gallagher Q2 Revenue Rises to $3.96 Billion
• Negative Sentiment: Investors had already been concerned that acquisitions were masking slower underlying growth across the insurance-brokerage sector. Gallagher’s 6% organic growth was solid, but the revenue miss and expense pressure appear to have overshadowed the headline growth and earnings performance.

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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