Arthur J. Gallagher & Co. (NYSE:AJG) Receives Average Rating of "Hold" from Brokerages

Key Points

• Arthur J. Gallagher & Co. has an average rating of "Hold" from 16 brokerages, with one sell rating and six buy ratings among them.
• The company's recent earnings report showed a miss on EPS expectations, with reported earnings of $2.33 per share against an anticipated $2.36.
• Arthur J. Gallagher & Co. announced a quarterly dividend of $0.65 per share, with a dividend yield of 0.9% and a payout ratio of 36.93%.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) has earned an average recommendation of "Hold" from the sixteen ratings firms that are presently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $333.1333.

Several research firms have commented on AJG. Barclays lowered their price objective on Arthur J. Gallagher & Co. from $346.00 to $327.00 and set an "equal weight" rating on the stock in a research report on Monday, July 7th. Keefe, Bruyette & Woods upped their price objective on Arthur J. Gallagher & Co. from $326.00 to $330.00 and gave the stock a "market perform" rating in a research report on Wednesday, July 9th. Erste Group Bank restated a "hold" rating on shares of Arthur J. Gallagher & Co. in a research report on Wednesday, July 23rd. Citigroup began coverage on Arthur J. Gallagher & Co. in a research report on Wednesday, August 13th. They issued a "neutral" rating and a $317.00 price objective on the stock. Finally, The Goldman Sachs Group began coverage on Arthur J. Gallagher & Co. in a research report on Wednesday, September 3rd. They issued a "buy" rating and a $344.00 price objective on the stock.

Insider Buying and Selling

In other news, CFO Douglas K. Howell sold 3,000 shares of the stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $299.78, for a total transaction of $899,340.00. Following the transaction, the chief financial officer owned 114,777 shares in the company, valued at $34,407,849.06. This trade represents a 2.55% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Scott R. Hudson sold 12,855 shares of the stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $297.60, for a total value of $3,825,648.00. Following the transaction, the vice president owned 85,920 shares in the company, valued at $25,569,792. This trade represents a 13.01% decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Valeo Financial Advisors LLC raised its stake in Arthur J. Gallagher & Co. by 3.1% in the 2nd quarter. Valeo Financial Advisors LLC now owns 1,604 shares of the financial services provider's stock valued at $513,000 after purchasing an additional 48 shares during the last quarter. Orion Porfolio Solutions LLC raised its stake in Arthur J. Gallagher & Co. by 14.8% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 14,758 shares of the financial services provider's stock valued at $4,724,000 after purchasing an additional 1,903 shares during the last quarter. Promus Capital LLC increased its stake in shares of Arthur J. Gallagher & Co. by 23.9% in the 2nd quarter. Promus Capital LLC now owns 3,696 shares of the financial services provider's stock worth $1,183,000 after acquiring an additional 714 shares during the last quarter. B. Riley Wealth Advisors Inc. acquired a new stake in shares of Arthur J. Gallagher & Co. in the 2nd quarter worth $1,160,000. Finally, Advisory Services Network LLC increased its stake in shares of Arthur J. Gallagher & Co. by 3.4% in the 2nd quarter. Advisory Services Network LLC now owns 8,399 shares of the financial services provider's stock worth $2,689,000 after acquiring an additional 279 shares during the last quarter. 85.53% of the stock is owned by institutional investors and hedge funds.

Arthur J. Gallagher & Co. Price Performance

Shares of NYSE AJG opened at $289.14 on Tuesday. The business's 50 day moving average price is $300.27 and its 200 day moving average price is $319.27. The firm has a market cap of $74.14 billion, a P/E ratio of 41.07 and a beta of 0.72. Arthur J. Gallagher & Co. has a 52 week low of $274.25 and a 52 week high of $351.23. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.52.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its earnings results on Thursday, July 31st. The financial services provider reported $2.33 EPS for the quarter, missing analysts' consensus estimates of $2.36 by ($0.03). The firm had revenue of $3.18 billion during the quarter, compared to analysts' expectations of $3.20 billion. Arthur J. Gallagher & Co. had a net margin of 14.54% and a return on equity of 13.17%. Arthur J. Gallagher & Co.'s quarterly revenue was up 16.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.29 EPS. On average, sell-side analysts expect that Arthur J. Gallagher & Co. will post 11.54 earnings per share for the current year.

Arthur J. Gallagher & Co. Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be given a dividend of $0.65 per share. The ex-dividend date is Friday, September 5th. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.9%. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is 36.93%.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co engages in the provision of insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. It operates through the following segments: Brokerage, Risk Management, and Corporate. The Brokerage segment consists of retail and wholesale insurance brokerage operations.

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