Arthur J. Gallagher & Co. (NYSE:AJG) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Consensus "Moderate Buy": Nineteen analysts cover AJG (10 buy, 9 hold) with an average 12‑month target of $273.94, implying notable upside from the recent open around $213.32, while some firms have recently raised targets (Barclays, BMO) and others trimmed theirs (Wells Fargo, Mizuho, UBS).
• Mixed quarterly results: AJG reported $2.38 EPS (beat by $0.03) and revenue of $3.57B (slightly below expectations) with revenue up 33.9% year‑over‑year
• Insider selling but heavy institutional ownership: Two vice presidents recently sold shares, reducing insider ownership to ~1.40%, while institutional investors own ~85.53%, with large holders (Vanguard, JPMorgan, Capital World, Norges Bank) increasing or initiating stakes.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) has earned a consensus rating of "Moderate Buy" from the nineteen research firms that are currently covering the company, MarketBeat Ratings reports. Nine equities research analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $273.9412.

Several research firms recently issued reports on AJG. Barclays increased their price target on shares of Arthur J. Gallagher & Co. from $262.00 to $275.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 8th. BMO Capital Markets raised shares of Arthur J. Gallagher & Co. from a "market perform" rating to an "outperform" rating and raised their price target for the company from $275.00 to $278.00 in a research note on Tuesday, March 24th. Wells Fargo & Company dropped their price target on shares of Arthur J. Gallagher & Co. from $273.00 to $266.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Mizuho lowered their target price on shares of Arthur J. Gallagher & Co. from $260.00 to $259.00 and set an "outperform" rating for the company in a research note on Monday, April 13th. Finally, UBS Group reduced their price target on shares of Arthur J. Gallagher & Co. from $285.00 to $283.00 and set a "neutral" rating for the company in a report on Monday, February 2nd.

Arthur J. Gallagher & Co. Stock Down 0.8%

Shares of AJG stock opened at $213.32 on Wednesday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.06 and a current ratio of 1.06. The firm's 50-day moving average is $217.54 and its 200-day moving average is $240.82. The stock has a market cap of $54.85 billion, a price-to-earnings ratio of 34.69, a PEG ratio of 1.07 and a beta of 0.68. Arthur J. Gallagher & Co. has a 52-week low of $195.00 and a 52-week high of $351.23.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its earnings results on Thursday, January 29th. The financial services provider reported $2.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. Arthur J. Gallagher & Co. had a net margin of 11.84% and a return on equity of 12.13%. The company had revenue of $3.57 billion for the quarter, compared to analysts' expectations of $3.61 billion. During the same period in the prior year, the firm earned $1.12 EPS. Arthur J. Gallagher & Co.'s quarterly revenue was up 33.9% compared to the same quarter last year. Sell-side analysts predict that Arthur J. Gallagher & Co. will post 13.19 EPS for the current year.

Insider Transactions at Arthur J. Gallagher & Co.

In related news, VP Christopher E. Mead sold 4,000 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $227.12, for a total transaction of $908,480.00. Following the transaction, the vice president directly owned 19,306 shares of the company's stock, valued at $4,384,778.72. This trade represents a 17.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Scott R. Hudson sold 3,800 shares of the firm's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $227.57, for a total transaction of $864,766.00. Following the transaction, the vice president directly owned 85,920 shares in the company, valued at $19,552,814.40. The trade was a 4.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.40% of the stock is owned by company insiders.

Institutional Trading of Arthur J. Gallagher & Co.

Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in Arthur J. Gallagher & Co. by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 31,390,446 shares of the financial services provider's stock worth $8,123,534,000 after acquiring an additional 217,136 shares during the period. JPMorgan Chase & Co. raised its position in Arthur J. Gallagher & Co. by 19.6% in the third quarter. JPMorgan Chase & Co. now owns 20,338,533 shares of the financial services provider's stock worth $6,299,674,000 after acquiring an additional 3,330,205 shares during the period. Capital World Investors raised its position in Arthur J. Gallagher & Co. by 7.0% in the fourth quarter. Capital World Investors now owns 12,613,371 shares of the financial services provider's stock worth $3,264,359,000 after acquiring an additional 830,252 shares during the period. State Street Corp raised its position in Arthur J. Gallagher & Co. by 0.6% in the fourth quarter. State Street Corp now owns 10,953,598 shares of the financial services provider's stock worth $2,834,682,000 after acquiring an additional 62,518 shares during the period. Finally, Norges Bank bought a new stake in Arthur J. Gallagher & Co. in the fourth quarter worth about $1,925,062,000. 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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