Arthur J. Gallagher & Co. (NYSE:AJG) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Nineteen analysts rate Arthur J. Gallagher & Co. a “Moderate Buy,” with 14 buy ratings and five holds. The average 12-month price target is $288.17.
• Recent firms raised their targets, including Argus to $300, UBS to $299 and Citigroup to $285, while Morgan Stanley and RBC recently trimmed targets but maintained bullish ratings.
• The company beat quarterly EPS expectations, reporting $2.84 versus the $2.81 consensus, while revenue increased 24.3% year over year. Insiders sold 28,500 shares worth about $7.6 million over the past 90 days, and institutional investors own 85.53% of the stock.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) has earned an average recommendation of "Moderate Buy" from the nineteen analysts that are currently covering the firm, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $288.17.

AJG has been the subject of a number of recent analyst reports. Truist Financial lifted their price target on shares of Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the company a "hold" rating in a research report on Friday, July 31st. Argus upped their price target on Arthur J. Gallagher & Co. from $267.00 to $300.00 and gave the stock a "buy" rating in a research note on Monday, August 17th. UBS Group lifted their price objective on Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Jefferies Financial Group raised Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and increased their target price for the stock from $235.00 to $265.00 in a research note on Thursday, June 11th. Finally, Citigroup raised their target price on Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a "buy" rating in a report on Tuesday, August 4th.

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

In other news, General Counsel Walter D. Bay sold 12,000 shares of the company's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $270.08, for a total transaction of $3,240,960.00. Following the sale, the general counsel owned 71,292 shares of the company's stock, valued at approximately $19,254,543.36. This represents a 14.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Richard C. Cary sold 1,000 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $252.86, for a total value of $252,860.00. Following the completion of the sale, the chief accounting officer owned 46,819 shares in the company, valued at approximately $11,838,652.34. The trade was a 2.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 28,500 shares of company stock valued at $7,562,950 in the last 90 days. Corporate insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Arthur J. Gallagher & Co.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. QRG Capital Management Inc. raised its holdings in Arthur J. Gallagher & Co. by 19.2% in the second quarter. QRG Capital Management Inc. now owns 6,497 shares of the financial services provider's stock valued at $1,491,000 after acquiring an additional 1,046 shares in the last quarter. Rench Wealth Management Inc. increased its position in shares of Arthur J. Gallagher & Co. by 1.1% in the 2nd quarter. Rench Wealth Management Inc. now owns 52,366 shares of the financial services provider's stock valued at $12,022,000 after purchasing an additional 594 shares during the last quarter. Sequoia Financial Advisors LLC raised its holdings in shares of Arthur J. Gallagher & Co. by 7.1% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 149,799 shares of the financial services provider's stock valued at $34,389,000 after purchasing an additional 9,966 shares in the last quarter. Tidal Investments LLC lifted its position in shares of Arthur J. Gallagher & Co. by 303.7% during the 2nd quarter. Tidal Investments LLC now owns 638,601 shares of the financial services provider's stock worth $146,604,000 after purchasing an additional 480,413 shares during the last quarter. Finally, MCF Advisors LLC grew its stake in shares of Arthur J. Gallagher & Co. by 97.9% during the second quarter. MCF Advisors LLC now owns 558 shares of the financial services provider's stock worth $128,000 after purchasing an additional 276 shares in the last quarter. Hedge funds and other institutional investors own 85.53% of the company's stock.

Key Stories Impacting Arthur J. Gallagher & Co.

Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

• Positive Sentiment: Morgan Stanley lowered its price target modestly to $285 from $290 while maintaining an Overweight rating, signaling that it still sees meaningful upside for AJG despite the adjustment. Morgan Stanley Adjusts PT on Arthur J. Gallagher & Co. to $285 From $290, Maintains Overweight Rating
• Positive Sentiment: Royal Bank of Canada also cut its target, to $290 from $310, but retained an Outperform rating. The target remains substantially above the recent trading level, reinforcing the view that AJG may be undervalued. RBC price target update
• Positive Sentiment: Commentary continues to describe AJG as trading below estimated fair value, which may attract value-oriented investors and support the stock if expected earnings growth remains intact. Is Arthur J. Gallagher Still Trading Below Fair Value?
• Positive Sentiment: AJG is expanding its Iberia deal-insurance team, suggesting continued investment in specialty insurance capabilities and potential long-term growth in international markets. Arthur J. Gallagher Expands Iberia Deal Insurance Team
• Neutral Sentiment: Recent analyst reports covering AJG and other financial companies add to market discussion but do not indicate a clear new change to the company’s outlook. Analyst insights on AJG and Affirm Analyst insights on AJG and Robinhood
• Neutral Sentiment: Management commentary and related transcripts focused on business strategy, insurance-market conditions and the financial outlook, offering context but no clearly identified catalyst in the available headlines. AJG business strategies and outlook transcript
• Negative Sentiment: AJG was reported lower in premarket trading, indicating near-term selling pressure and investor caution before the later recovery. Arthur J. Gallagher stock falls before the bell
• Negative Sentiment: The repeated price-target reductions—from both Morgan Stanley and RBC—could weigh on sentiment even though both firms maintained bullish ratings.

Arthur J. Gallagher & Co. Trading Up 1.7%

AJG stock opened at $231.04 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.50. The business's 50-day moving average is $251.82 and its 200 day moving average is $229.84. The stock has a market cap of $59.22 billion, a price-to-earnings ratio of 38.32, a PEG ratio of 1.38 and a beta of 0.50. Arthur J. Gallagher & Co. has a 12-month low of $190.75 and a 12-month high of $313.55.

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. The firm had revenue of $3.95 billion during the quarter, compared to analysts' expectations of $4.01 billion. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%.The business's revenue for the quarter was up 24.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.33 earnings per share. On average, sell-side analysts anticipate that Arthur J. Gallagher & Co. will post 13.28 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Tuesday, September 8th were issued a $0.70 dividend. The ex-dividend date was Tuesday, September 8th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.2%. Arthur J. Gallagher & Co.'s payout ratio is 46.43%.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The company helps businesses, institutions and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, risk management, claims administration, actuarial services, captive insurance and wholesale brokerage. Gallagher arranges commercial property and casualty coverage, personal insurance, specialty insurance and employee benefit programs, while also providing services designed to help clients manage workplace, liability and other operational risks.

Founded in 1927 by Arthur J.

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