Aon plc (NYSE:AON) Stock Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analysts rate Aon “Moderate Buy” overall: Twelve of 19 analysts recommend buying the stock, six rate it a hold, and one recommends selling. The average 12-month price target is $391, well above the reported opening price of $274.33.
• Aon’s latest quarterly results slightly exceeded earnings expectations, with EPS of $3.81 versus the $3.80 consensus, while revenue rose 2.2% year over year to $4.25 billion but fell short of estimates.
• The company pays a quarterly dividend of $0.82, equivalent to an annualized $3.28 and a 1.2% yield. Institutional investors own 86.14% of Aon, while recent insider activity included a director purchasing 20,000 shares and the general counsel selling 1,900 shares.

Aon plc (NYSE:AON - Get Free Report) has received an average rating of "Moderate Buy" from the nineteen analysts that are covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, six have issued a hold rating and twelve have assigned a buy rating to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $391.00.

Several brokerages have weighed in on AON. JPMorgan Chase & Co. lowered their target price on shares of AON from $412.00 to $362.00 and set an "overweight" rating for the company in a research note on Thursday, October 1st. TD Cowen upped their price objective on shares of AON from $416.00 to $420.00 and gave the stock a "buy" rating in a report on Monday, September 14th. Wolfe Research cut shares of AON from a "hold" rating to a "strong sell" rating in a research report on Friday, September 11th. Wall Street Zen downgraded shares of AON from a "hold" rating to a "sell" rating in a report on Sunday, September 6th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of AON in a research note on Tuesday, September 1st.

AON Price Performance

AON stock opened at $274.33 on Wednesday. AON has a 1 year low of $266.33 and a 1 year high of $382.34. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.54 and a quick ratio of 1.54. The firm has a market capitalization of $58.19 billion, a PE ratio of 15.12, a price-to-earnings-growth ratio of 1.39 and a beta of 0.70. The business has a 50 day simple moving average of $324.30 and a 200-day simple moving average of $328.59.

AON (NYSE:AON - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, beating the consensus estimate of $3.80 by $0.01. AON had a net margin of 22.27% and a return on equity of 42.13%. The firm had revenue of $4.25 billion for the quarter, compared to analysts' expectations of $4.28 billion. During the same quarter in the previous year, the company posted $3.49 EPS. The company's revenue was up 2.2% compared to the same quarter last year. Equities research analysts anticipate that AON will post 18.81 earnings per share for the current fiscal year.

AON Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Monday, August 3rd were paid a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Monday, August 3rd. AON's dividend payout ratio (DPR) is presently 18.08%.

Insider Transactions at AON

In related news, General Counsel Darren Zeidel sold 1,900 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total transaction of $717,744.00. Following the sale, the general counsel directly owned 11,504 shares in the company, valued at approximately $4,345,751.04. This represents a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lester Knight acquired 20,000 shares of AON stock in a transaction dated Wednesday, September 2nd. The stock was purchased at an average price of $327.48 per share, for a total transaction of $6,549,600.00. Following the completion of the acquisition, the director directly owned 163,000 shares in the company, valued at approximately $53,379,240. This represents a 13.99% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC purchased a new position in shares of AON in the 4th quarter valued at approximately $37,000. SJS Investment Consulting Inc. lifted its holdings in shares of AON by 258.3% during the first quarter. SJS Investment Consulting Inc. now owns 129 shares of the financial services provider's stock worth $42,000 after purchasing an additional 93 shares during the period. Cassaday & Co Wealth Management LLC purchased a new position in AON in the 1st quarter valued at $61,000. Reflection Asset Management purchased a new position in AON during the 4th quarter worth $72,000. Finally, Elevation Wealth Partners LLC lifted its stake in shares of AON by 35.6% in the 2nd quarter. Elevation Wealth Partners LLC now owns 221 shares of the financial services provider's stock worth $73,000 after acquiring an additional 58 shares during the period. Hedge funds and other institutional investors own 86.14% of the company's stock.

AON Company Profile

Aon plc is a global professional services firm that helps organizations manage risk, make better decisions and improve performance. Its services are organized around risk capital and human capital, combining advisory expertise, data, analytics and insurance-related solutions.

The company provides commercial risk brokerage and consulting, reinsurance brokerage, retirement and investment advisory services, health benefits consulting, talent and compensation consulting, and related technology and data products.

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