Arthur J. Gallagher & Co. (NYSE:AJG) Sets New 12-Month Low - Time to Sell?

Key Points

• Shares hit a new 52-week low, trading as low as $234.48 and last at about $235.29 (volume ~220,358) — the stock is down ~8.1% and trading below its 50‑day ($252.83) and 200‑day ($273.82) moving averages.
• Analysts are mixed with an average rating of "Hold" and an average price target of $284.12 (6 Buys, 12 Holds, 1 Sell), reflecting cautious sentiment despite some upside targets.
• Fundamentals show a modest beat on EPS ($2.38 vs. $2.35) and revenue up 33.9% year‑over‑year, the company raised its quarterly dividend to $0.70 (1.3% yield), while insiders sold ~32,100 shares (~$8.24M) recently.

Shares of Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) hit a new 52-week low on Monday . The stock traded as low as $234.48 and last traded at $235.2860, with a volume of 220358 shares traded. The stock had previously closed at $241.58.

Analyst Upgrades and Downgrades

AJG has been the topic of several research reports. Weiss Ratings reissued a "hold (c+)" rating on shares of Arthur J. Gallagher & Co. in a research note on Monday, December 29th. Mizuho set a $277.00 price target on shares of Arthur J. Gallagher & Co. in a research note on Wednesday, January 14th. TD Cowen reiterated a "buy" rating on shares of Arthur J. Gallagher & Co. in a research note on Friday, October 31st. Jefferies Financial Group cut their price target on Arthur J. Gallagher & Co. from $283.00 to $280.00 and set a "hold" rating on the stock in a report on Monday, February 2nd. Finally, Morgan Stanley set a $300.00 price objective on Arthur J. Gallagher & Co. in a research report on Friday, December 19th. Six research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $284.12.

Arthur J. Gallagher & Co. Trading Down 8.1%

The company has a debt-to-equity ratio of 0.52, a current ratio of 1.06 and a quick ratio of 1.06. The firm has a market capitalization of $57.03 billion, a price-to-earnings ratio of 35.67, a price-to-earnings-growth ratio of 1.31 and a beta of 0.66. The business's 50 day moving average price is $252.83 and its 200-day moving average price is $273.82.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly 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. The business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.61 billion. Arthur J. Gallagher & Co. had a net margin of 11.84% and a return on equity of 12.13%. The business's revenue was up 33.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.12 EPS. Equities analysts forecast that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be given a $0.70 dividend. This is a boost from Arthur J. Gallagher & Co.'s previous quarterly dividend of $0.65. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, March 6th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is presently 42.28%.

Insider Activity at Arthur J. Gallagher & Co.

In other news, General Counsel Walter D. Bay sold 15,850 shares of the firm's stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $255.00, for a total value of $4,041,750.00. Following the transaction, the general counsel directly owned 79,549 shares in the company, valued at $20,284,995. This trade represents a 16.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Richard C. Cary sold 6,000 shares of the firm's stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $261.00, for a total value of $1,566,000.00. Following the completion of the transaction, the chief accounting officer directly owned 50,668 shares in the company, valued at $13,224,348. This trade represents a 10.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 32,100 shares of company stock valued at $8,243,865. Insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Harbour Investments Inc. grew its position in Arthur J. Gallagher & Co. by 8.0% during the fourth quarter. Harbour Investments Inc. now owns 1,300 shares of the financial services provider's stock valued at $336,000 after purchasing an additional 96 shares in the last quarter. Allstate Corp raised its holdings in Arthur J. Gallagher & Co. by 114.3% in the 4th quarter. Allstate Corp now owns 19,529 shares of the financial services provider's stock worth $5,054,000 after acquiring an additional 10,415 shares during the period. Annis Gardner Whiting Capital Advisors LLC grew its holdings in Arthur J. Gallagher & Co. by 41.2% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 209 shares of the financial services provider's stock valued at $54,000 after buying an additional 61 shares during the last quarter. Fisher Asset Management LLC grew its position in Arthur J. Gallagher & Co. by 67.9% in the 4th quarter. Fisher Asset Management LLC now owns 1,563 shares of the financial services provider's stock worth $405,000 after purchasing an additional 632 shares during the last quarter. Finally, Clearstead Trust LLC lifted its position in shares of Arthur J. Gallagher & Co. by 295.2% in the 4th quarter. Clearstead Trust LLC now owns 245 shares of the financial services provider's stock worth $63,000 after acquiring an additional 183 shares during the period. 85.53% of the stock is 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.