Citigroup Initiates Coverage on Arthur J. Gallagher & Co. (NYSE:AJG)

Key Points

• Citigroup has initiated coverage on Arthur J. Gallagher & Co. with a "neutral" rating and a price target of $317.00, indicating a potential upside of 9.08% from the stock's previous close.
• Recent analysis from various firms shows mixed sentiments; while Wells Fargo increased its target price and gave an "overweight" rating, Barclays lowered its price target to $327.00, maintaining an "equal weight" rating.
• Arthur J. Gallagher & Co. reported earnings of $2.33 EPS in its last quarter, falling short of analysts' expectations, but still showing a revenue increase of 16.0% year-over-year.

Citigroup initiated coverage on shares of Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) in a note issued to investors on Wednesday, Marketbeat reports. The brokerage set a "neutral" rating and a $317.00 price target on the financial services provider's stock. Citigroup's price objective points to a potential upside of 9.08% from the stock's previous close.

AJG has been the topic of several other reports. Wells Fargo & Company raised their target price on shares of Arthur J. Gallagher & Co. from $371.00 to $373.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Barclays decreased their target price on shares of 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. Keefe, Bruyette & Woods raised their target price on shares of Arthur J. Gallagher & Co. from $326.00 to $330.00 and gave the company a "market perform" rating in a report on Wednesday, July 9th. UBS Group reduced their price target on shares of Arthur J. Gallagher & Co. from $345.00 to $322.00 and set a "neutral" rating on the stock in a research note on Monday, August 4th. Finally, Piper Sandler raised their price target on shares of Arthur J. Gallagher & Co. from $352.00 to $372.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Two analysts have rated the stock with a sell rating, nine have given a hold rating and six have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Arthur J. Gallagher & Co. presently has an average rating of "Hold" and an average target price of $331.07.

Arthur J. Gallagher & Co. Price Performance

Shares of AJG opened at $290.61 on Wednesday. Arthur J. Gallagher & Co. has a fifty-two week low of $274.25 and a fifty-two week high of $351.23. The firm has a market capitalization of $74.51 billion, a PE ratio of 41.28 and a beta of 0.68. The company's 50-day moving average is $310.25 and its 200-day moving average is $322.60. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.36 and a quick ratio of 1.36.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The financial services provider reported $2.33 EPS for the quarter, missing analysts' consensus estimates of $2.36 by ($0.03). Arthur J. Gallagher & Co. had a return on equity of 13.17% and a net margin of 14.54%. The business had revenue of $3.18 billion for the quarter, compared to the consensus estimate of $3.20 billion. During the same period in the prior year, the business posted $2.29 earnings per share. Arthur J. Gallagher & Co.'s revenue was up 16.0% compared to the same quarter last year. Equities analysts forecast that Arthur J. Gallagher & Co. will post 11.54 EPS for the current year.

Insider Buying and Selling at Arthur J. Gallagher & Co.

In other news, Director David S. Johnson sold 1,000 shares of the company's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $342.04, for a total value of $342,040.00. Following the completion of the sale, the director owned 45,323 shares in the company, valued at $15,502,278.92. This represents a 2.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Susan E. Pietrucha sold 13,500 shares of the company's stock in a transaction on Monday, May 19th. The stock was 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. The trade was a 53.06% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 25,000 shares of company stock worth $8,528,080. 1.30% of the stock is owned by corporate insiders.

Institutional Trading of Arthur J. Gallagher & Co.

Institutional investors have recently made changes to their positions in the company. HWG Holdings LP bought a new stake in shares of Arthur J. Gallagher & Co. in the 1st quarter worth $25,000. AlphaQuest LLC purchased a new stake in Arthur J. Gallagher & Co. during the first quarter valued at about $33,000. Saudi Central Bank purchased a new stake in Arthur J. Gallagher & Co. during the first quarter valued at about $34,000. J.Safra Asset Management Corp lifted its holdings in shares of Arthur J. Gallagher & Co. by 209.1% in the second quarter. J.Safra Asset Management Corp now owns 102 shares of the financial services provider's stock worth $32,000 after buying an additional 69 shares in the last quarter. Finally, Centennial Bank AR purchased a new stake in shares of Arthur J. Gallagher & Co. in the first quarter worth about $38,000. Institutional investors own 85.53% of the company's stock.

About Arthur J. Gallagher & Co.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.