Arthur J. Gallagher & Co. (NYSE:AJG) Stock Price Expected to Rise, Mizuho Analyst Says

Key Points

• Mizuho raised its price target on Arthur J. Gallagher & Co. (NYSE:AJG) from $261 to $287 and kept an outperform rating, implying about 11.79% upside from the prior close.
• Analyst sentiment remains broadly positive, with the stock carrying an average “Moderate Buy” rating and a consensus price target of $271.18. Thirteen analysts rate AJG a Buy, while six rate it Hold.
• The company recently beat earnings expectations, reporting $4.47 EPS versus the $4.43 consensus, while revenue rose 29% year over year to $4.71 billion. Shares opened at $256.73, and the company has a market cap of about $65.95 billion.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) had its target price lifted by equities research analysts at Mizuho from $261.00 to $287.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has an "outperform" rating on the financial services provider's stock. Mizuho's price objective suggests a potential upside of 11.79% from the stock's previous close.

Several other research analysts have also commented on AJG. UBS Group upped their price objective on shares of Arthur J. Gallagher & Co. from $250.00 to $291.00 and gave the stock a "buy" rating in a report on Wednesday. Keefe, Bruyette & Woods boosted their price target on shares of Arthur J. Gallagher & Co. from $242.00 to $261.00 and gave the company a "market perform" rating in a research report on Wednesday. Weiss Ratings reissued a "hold (c-)" rating on shares of Arthur J. Gallagher & Co. in a research note on Monday, June 15th. Piper Sandler cut their price objective on Arthur J. Gallagher & Co. from $226.00 to $211.00 and set a "neutral" rating on the stock in a research report on Friday, May 1st. Finally, Jefferies Financial Group upgraded Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and upped their target price for the stock from $235.00 to $265.00 in a report on Thursday, June 11th. Thirteen investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Arthur J. Gallagher & Co. has an average rating of "Moderate Buy" and an average price target of $271.18.

Arthur J. Gallagher & Co. Price Performance

Shares of AJG stock opened at $256.73 on Thursday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.06 and a current ratio of 1.06. Arthur J. Gallagher & Co. has a fifty-two week low of $190.75 and a fifty-two week high of $316.89. The firm has a market cap of $65.95 billion, a P/E ratio of 41.54, a P/E/G ratio of 1.29 and a beta of 0.50. The business's 50 day moving average price is $214.46 and its 200-day moving average price is $225.67.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The financial services provider reported $4.47 EPS for the quarter, topping analysts' consensus estimates of $4.43 by $0.04. The company had revenue of $4.71 billion during the quarter, compared to analyst estimates of $4.73 billion. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The firm's revenue was up 29.0% on a year-over-year basis. During the same quarter last year, the firm posted $3.67 earnings per share. On average, equities research analysts anticipate that Arthur J. Gallagher & Co. will post 13.23 earnings per share for the current year.

Insider Transactions at Arthur J. Gallagher & Co.

In related news, CAO Richard C. Cary sold 3,000 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $206.00, for a total transaction of $618,000.00. Following the sale, the chief accounting officer owned 47,819 shares of the company's stock, valued at $9,850,714. The trade was a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 1.40% of the stock is currently owned by company insiders.

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

Large investors have recently made changes to their positions in the business. Kemnay Advisory Services Inc. bought a new position in Arthur J. Gallagher & Co. during the 4th quarter valued at approximately $26,000. Axiom Investment Management LLC bought a new stake in Arthur J. Gallagher & Co. in the first quarter worth $28,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Arthur J. Gallagher & Co. in the first quarter worth $29,000. MV Capital Management Inc. bought a new position in shares of Arthur J. Gallagher & Co. during the fourth quarter valued at $34,000. Finally, Rakuten Securities Inc. raised its position in shares of Arthur J. Gallagher & Co. by 650.0% in the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock worth $34,000 after purchasing 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. 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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