Christopher Mead Sells 3,500 Shares of Arthur J. Gallagher & Co. (NYSE:AJG) Stock

Key Points

• Insider sale: VP Christopher Mead sold 3,500 Arthur J. Gallagher shares at an average price of $257.02, generating approximately $899,570 and reducing his direct holdings by 13.61%.
• Quarterly performance: The company reported adjusted earnings of $2.84 per share, beating estimates by $0.03, while revenue rose 24.3% year over year to $3.95 billion, slightly below analyst expectations.
• Investor outlook: Gallagher declared a quarterly dividend of $0.70 per share, equivalent to a 1.1% yield, while analysts maintain a “Moderate Buy” consensus with an average price target of $290.28 versus the stock’s reported trading price of $259.45.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) VP Christopher Mead sold 3,500 shares of the company's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $257.02, for a total transaction of $899,570.00. Following the completion of the sale, the vice president directly owned 22,223 shares in the company, valued at $5,711,755.46. This trade represents a 13.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Arthur J. Gallagher & Co. Trading Up 0.8%

NYSE:AJG traded up $2.00 during trading hours on Thursday, reaching $259.45. 1,340,743 shares of the company were exchanged, compared to its average volume of 1,343,222. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.05 and a quick ratio of 1.05. Arthur J. Gallagher & Co. has a 52-week low of $190.75 and a 52-week high of $313.55. The firm has a market cap of $66.50 billion, a price-to-earnings ratio of 43.03, a PEG ratio of 1.58 and a beta of 0.50. The stock has a 50 day simple moving average of $243.60 and a 200 day simple moving average of $224.76.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The financial services provider reported $2.84 EPS for the quarter, beating the consensus estimate of $2.81 by $0.03. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.28%. The firm had revenue of $3.95 billion for the quarter, compared to analyst estimates of $4.01 billion. During the same quarter last year, the firm posted $2.33 earnings per share. Arthur J. Gallagher & Co.'s revenue for the quarter was up 24.3% compared to the same quarter last year. As a group, analysts predict that Arthur J. Gallagher & Co. will post 13.27 EPS for the current year.

Arthur J. Gallagher & Co. Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Tuesday, September 8th will be paid a dividend of $0.70 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $2.80 annualized dividend and a yield of 1.1%. Arthur J. Gallagher & Co.'s payout ratio is 46.43%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. UBS Group raised their price target on Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the stock a "buy" rating in a report on Monday, August 3rd. Jefferies Financial Group upgraded Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and increased their price target for the company from $235.00 to $265.00 in a research report on Thursday, June 11th. Royal Bank Of Canada boosted their price objective on Arthur J. Gallagher & Co. from $300.00 to $310.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Keefe, Bruyette & Woods upped their price objective on shares of Arthur J. Gallagher & Co. from $261.00 to $271.00 and gave the company a "market perform" rating in a research note on Friday, July 31st. Finally, Argus lifted their target price on shares of Arthur J. Gallagher & Co. from $267.00 to $300.00 and gave the stock a "buy" rating in a research report on Monday. Fourteen analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Arthur J. Gallagher & Co. has an average rating of "Moderate Buy" and an average price target of $290.28.

Institutional Investors Weigh In On Arthur J. Gallagher & Co.

Several hedge funds have recently bought and sold shares of AJG. Moore Capital Management LP acquired a new stake in Arthur J. Gallagher & Co. during the 2nd quarter worth about $4,248,000. Sigma Planning Corp purchased a new stake in shares of Arthur J. Gallagher & Co. in the second quarter worth approximately $329,000. Meiji Yasuda Life Insurance Co lifted its position in shares of Arthur J. Gallagher & Co. by 27.6% in the second quarter. Meiji Yasuda Life Insurance Co now owns 10,443 shares of the financial services provider's stock worth $2,397,000 after purchasing an additional 2,260 shares in the last quarter. Cullinan Associates Inc. acquired a new stake in shares of Arthur J. Gallagher & Co. during the second quarter worth approximately $4,017,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Arthur J. Gallagher & Co. by 0.3% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,453,774 shares of the financial services provider's stock valued at $333,743,000 after purchasing an additional 3,905 shares in the last quarter. 85.53% of the stock is owned by hedge funds and other institutional investors.

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.

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