Aon plc (NYSE:AON) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Aon has a “Moderate Buy” consensus from 19 analysts, with 12 buy ratings and seven holds. The average 12-month price target is approximately $399.12, well above the reported share price of $303.19.
• Aon’s latest quarterly results slightly exceeded expectations, with adjusted EPS of $3.81 versus the $3.80 consensus, while revenue reached $4.25 billion and rose 2.2% year over year.
• The company pays a quarterly dividend of $0.82, equivalent to $3.28 annually and a 1.1% yield. Institutional investors own 86.14% of Aon, while recent insider activity included a director purchasing 20,000 shares.

Aon plc (NYSE:AON - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the nineteen research firms that are covering the company, MarketBeat Ratings reports. Seven analysts have rated the stock with a hold recommendation and twelve have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $399.1176.

A number of research firms recently commented on AON. Wells Fargo & Company decreased their price target on AON from $419.00 to $383.00 and set an "overweight" rating on the stock in a research report on Tuesday, September 1st. TD Cowen restated a "buy" rating on shares of AON in a report on Tuesday, September 1st. Citigroup lifted their price target on AON from $420.00 to $435.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of AON in a report on Tuesday, September 1st. Finally, BMO Capital Markets dropped their target price on shares of AON from $375.00 to $360.00 and set a "market perform" rating for the company in a research note on Tuesday, September 1st.

AON Stock Down 1.5%

AON stock opened at $303.19 on Friday. AON has a twelve month low of $302.44 and a twelve month high of $382.34. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. The company has a market cap of $64.31 billion, a PE ratio of 16.71, a price-to-earnings-growth ratio of 1.56 and a beta of 0.66. The business's 50-day simple moving average is $350.34 and its 200 day simple moving average is $333.70.

AON (NYSE:AON - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.80 by $0.01. The company had revenue of $4.25 billion during the quarter, compared to analysts' expectations of $4.28 billion. AON had a net margin of 22.27% and a return on equity of 42.13%. The business's revenue was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.49 EPS. On average, research analysts anticipate that AON will post 18.94 earnings per share for the current year.

AON Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Monday, August 3rd were given a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 1.1%. The ex-dividend date was Monday, August 3rd. AON's payout ratio is 18.08%.

Insiders Place Their Bets

In other news, General Counsel Darren Zeidel sold 1,950 shares of AON stock in a transaction on Friday, July 17th. The stock was sold at an average price of $372.05, for a total value of $725,497.50. Following the completion of the sale, the general counsel directly owned 13,404 shares of the company's stock, valued at approximately $4,986,958.20. This trade represents a 12.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Lester Knight bought 20,000 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were purchased at an average price of $327.48 per share, with a total value of $6,549,600.00. Following the transaction, the director owned 163,000 shares of the company's stock, valued at $53,379,240. The trade was a 13.99% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 4,450 shares of company stock worth $1,659,242 over the last quarter. Corporate insiders own 1.00% of the company's stock.

Institutional Investors Weigh In On AON

Several institutional investors have recently modified their holdings of the business. Aviva PLC lifted its stake in AON by 2.0% in the fourth quarter. Aviva PLC now owns 333,454 shares of the financial services provider's stock valued at $117,669,000 after buying an additional 6,622 shares during the period. Handelsbanken Fonder AB grew its position in shares of AON by 9.1% during the 4th quarter. Handelsbanken Fonder AB now owns 67,034 shares of the financial services provider's stock worth $23,655,000 after buying an additional 5,585 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake in shares of AON by 1,864.5% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 343,754 shares of the financial services provider's stock valued at $121,304,000 after acquiring an additional 326,256 shares during the last quarter. The Manufacturers Life Insurance Company raised its position in shares of AON by 136.1% in the 1st quarter. The Manufacturers Life Insurance Company now owns 547,850 shares of the financial services provider's stock valued at $176,835,000 after acquiring an additional 315,817 shares during the period. Finally, Ally Financial Inc. bought a new position in AON during the 2nd quarter worth approximately $995,000. Institutional investors and hedge funds own 86.14% of the company's stock.

About AON

Aon plc is a global professional services firm that helps organizations manage risk, support workforce strategies and make informed decisions. Its principal activities include commercial risk brokerage, insurance and reinsurance consulting, retirement and investment advisory services, health and benefits consulting, and data- and analytics-based business solutions.

Aon serves businesses, governments, institutional investors and individuals across a broad range of industries and geographies.

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