Arthur J. Gallagher & Co. (NYSE:AJG) Sets New 1-Year Low - What's Next?

Key Points

• Stock hit a new 52-week low — AJG traded as low as $194.15 (last about $198.55) with its 50‑day ($216.69) and 200‑day ($238.30) moving averages well above the current price, indicating recent weakness.
• Analyst consensus is a "Moderate Buy" — 11 Buys and 8 Holds produce a $268 consensus target, but recent broker moves diverge (Goldman $292 buy, Barclays $275 overweight, UBS trimmed to $283, Piper Sandler cut to $211), showing mixed opinions.
• Quarterly results and payouts — AJG slightly beat EPS ($4.47 vs. $4.43) while revenue narrowly missed ($4.71B vs. $4.73B) with revenue up 29% YoY; the company declared a $0.70 quarterly dividend (1.4% yield), insiders sold shares, and institutional ownership remains high (~85.5%).

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $194.15 and last traded at $198.5490, with a volume of 90751 shares changing hands. The stock had previously closed at $196.91.

Analyst Upgrades and Downgrades

AJG has been the subject of several analyst reports. The Goldman Sachs Group restated a "buy" rating and issued a $292.00 target price on shares of Arthur J. Gallagher & Co. in a research report on Wednesday, January 7th. UBS Group dropped their target price on shares of Arthur J. Gallagher & Co. from $285.00 to $283.00 and set a "neutral" rating for the company in a research report on Monday, February 2nd. Morgan Stanley set a $265.00 target price on shares of Arthur J. Gallagher & Co. in a research report on Thursday. Barclays boosted their target price on shares of Arthur J. Gallagher & Co. from $262.00 to $275.00 and gave the company an "overweight" rating in a research report on Wednesday, April 8th. Finally, Piper Sandler dropped their target price on shares of Arthur J. Gallagher & Co. from $226.00 to $211.00 and set a "neutral" rating for the company in a research report on Friday, May 1st. Eleven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $268.00.

Arthur J. Gallagher & Co. Stock Performance

The stock's 50-day moving average is $216.69 and its 200-day moving average is $238.30. The firm has a market capitalization of $51.88 billion, a price-to-earnings ratio of 32.72, a PEG ratio of 1.04 and a beta of 0.54. 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. (NYSE:AJG - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The financial services provider reported $4.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.43 by $0.04. The business had revenue of $4.71 billion during the quarter, compared to analysts' expectations of $4.73 billion. Arthur J. Gallagher & Co. had a net margin of 10.76% and a return on equity of 12.83%. The firm's quarterly revenue was up 29.0% compared to the same quarter last year. During the same period in the prior year, the company earned $3.67 EPS. On average, analysts predict that Arthur J. Gallagher & Co. will post 13.23 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, June 5th will be given a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 1.4%. The ex-dividend date is Friday, June 5th. Arthur J. Gallagher & Co.'s dividend payout ratio is 45.31%.

Insider Activity at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, VP Scott R. Hudson sold 3,800 shares of the company's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $227.57, for a total value of $864,766.00. Following the completion of the transaction, the vice president directly owned 85,920 shares in the company, valued at approximately $19,552,814.40. This represents a 4.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Christopher E. Mead sold 4,000 shares of the company's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $227.12, for a total transaction of $908,480.00. Following the completion of the transaction, the vice president owned 19,306 shares of the company's stock, valued at approximately $4,384,778.72. This trade represents a 17.16% 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.

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

Several institutional investors and hedge funds have recently added to or reduced their stakes in AJG. Norges Bank acquired a new position in Arthur J. Gallagher & Co. in the 4th quarter valued at approximately $1,925,062,000. JPMorgan Chase & Co. boosted its stake in shares of Arthur J. Gallagher & Co. by 19.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 20,338,533 shares of the financial services provider's stock valued at $6,299,674,000 after purchasing an additional 3,330,205 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its stake in shares of Arthur J. Gallagher & Co. by 123.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 5,887,538 shares of the financial services provider's stock valued at $1,523,636,000 after purchasing an additional 3,253,498 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Arthur J. Gallagher & Co. by 9,244.9% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,053,636 shares of the financial services provider's stock valued at $272,670,000 after purchasing an additional 1,042,361 shares during the last quarter. Finally, Viking Global Investors LP bought a new stake in shares of Arthur J. Gallagher & Co. in the 4th quarter valued at $269,394,000. 85.53% of the stock is currently owned by institutional investors and hedge funds.

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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