Arthur J. Gallagher & Co. (NYSE:AJG) Upgraded to Strong-Buy at Cantor Fitzgerald

Key Points

• Arthur J. Gallagher & Co. was upgraded to a "strong-buy" rating by Cantor Fitzgerald, indicating increased investment confidence in the company.
• Despite a strong market performance and a quarterly revenue increase of 16% year-over-year, the company missed earnings expectations for the latest quarter.
• Insider selling has occurred recently, with significant transactions by executives, suggesting potential concerns about stock performance despite the firm's overall growth trajectory.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) was upgraded by equities research analysts at Cantor Fitzgerald to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Other equities analysts have also issued research reports about the company. Wells Fargo & Company lifted their price target on Arthur J. Gallagher & Co. from $371.00 to $373.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Barclays dropped 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 report on Monday, July 7th. Citigroup assumed coverage on Arthur J. Gallagher & Co. in a research note on Wednesday. They set a "neutral" rating and a $317.00 target price for the company. Piper Sandler increased their target price on Arthur J. Gallagher & Co. from $352.00 to $372.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, Keefe, Bruyette & Woods boosted their price target on shares of Arthur J. Gallagher & Co. from $326.00 to $330.00 and gave the stock a "market perform" rating in a report on Wednesday, July 9th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $331.07.

Arthur J. Gallagher & Co. Price Performance

NYSE:AJG opened at $295.23 on Wednesday. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.36 and a quick ratio of 1.36. The company has a 50 day moving average price of $309.43 and a 200-day moving average price of $322.41. Arthur J. Gallagher & Co. has a 1-year low of $274.25 and a 1-year high of $351.23. The firm has a market cap of $75.70 billion, a price-to-earnings ratio of 41.94 and a beta of 0.68.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The financial services provider reported $2.33 earnings per share 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%. The firm's quarterly revenue was up 16.0% on a year-over-year basis. During the same period in the previous year, the firm posted $2.29 EPS. Equities research analysts forecast that Arthur J. Gallagher & Co. will post 11.54 EPS for the current year.

Insider Buying and Selling

In related news, insider Susan E. Pietrucha sold 13,500 shares of the company's stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $344.13, for a total transaction of $4,645,755.00. Following the completion of the sale, the insider owned 11,941 shares of the company's stock, valued at approximately $4,109,256.33. This represents a 53.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David S. Johnson sold 1,000 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $342.04, for a total transaction of $342,040.00. Following the completion of the transaction, the director directly owned 45,323 shares in the company, valued at $15,502,278.92. This trade represents a 2.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 25,000 shares of company stock worth $8,528,080. 1.60% of the stock is owned by insiders.

Institutional Trading of Arthur J. Gallagher & Co.

Several large investors have recently added to or reduced their stakes in the stock. CWA Asset Management Group LLC boosted its position in shares of Arthur J. Gallagher & Co. by 22.5% during the 1st quarter. CWA Asset Management Group LLC now owns 1,125 shares of the financial services provider's stock valued at $388,000 after acquiring an additional 207 shares during the last quarter. Two Sigma Investments LP acquired a new position in Arthur J. Gallagher & Co. in the 4th quarter valued at about $382,000. Golden State Wealth Management LLC grew its stake in shares of Arthur J. Gallagher & Co. by 2,750.0% in the 1st quarter. Golden State Wealth Management LLC now owns 114 shares of the financial services provider's stock valued at $39,000 after buying an additional 110 shares during the period. Allspring Global Investments Holdings LLC increased its holdings in shares of Arthur J. Gallagher & Co. by 0.7% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 11,280 shares of the financial services provider's stock worth $3,879,000 after buying an additional 82 shares during the last quarter. Finally, Seven Grand Managers LLC purchased a new stake in shares of Arthur J. Gallagher & Co. during the 4th quarter valued at approximately $7,096,000. 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 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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