Arthur J. Gallagher & Co. (NYSE:AJG) Stock Has Average Target Price of $292.32 According to Analysts

Key Points

• Analysts give Arthur J. Gallagher a “Moderate Buy” consensus: 13 of 20 rate the stock a buy and seven recommend holding it. The average 12-month price target is $292.32.
• In its latest quarter, the company earned $3.00 per share, slightly above the $2.99 consensus, while revenue of $3.92 billion fell short of estimates but rose 19.6% year over year.
• The company announced a quarterly dividend of $0.70 per share, equivalent to $2.80 annually and a 1.0% yield. Insiders sold a combined 105,616 shares worth about $29.2 million over the past 90 days.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) has received an average rating of "Moderate Buy" from the twenty research firms that are presently covering the stock, Marketbeat.com reports. Seven equities research analysts have rated the stock with a hold recommendation and thirteen have assigned a buy recommendation to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $292.32.

Several analysts have recently commented on AJG shares. Cantor Fitzgerald lowered their price target on shares of Arthur J. Gallagher & Co. from $300.00 to $280.00 and set a "neutral" rating on the stock in a research report on Wednesday, October 7th. Citigroup lowered shares of Arthur J. Gallagher & Co. from a "buy" rating to a "neutral" rating and lifted their price target for the company from $285.00 to $300.00 in a report on Monday, November 2nd. The Goldman Sachs Group reissued a "buy" rating and set a $296.00 price objective on shares of Arthur J. Gallagher & Co. in a research note on Friday, October 30th. Evercore increased their target price on Arthur J. Gallagher & Co. from $295.00 to $307.00 and gave the stock an "outperform" rating in a research report on Thursday, October 8th. Finally, Wells Fargo & Company lifted their target price on Arthur J. Gallagher & Co. from $284.00 to $312.00 and gave the company an "overweight" rating in a report on Monday, November 2nd.

Arthur J. Gallagher & Co. Trading Up 1.9%

NYSE:AJG traded up $5.32 during trading hours on Friday, reaching $282.60. 1,182,189 shares of the stock were exchanged, compared to its average volume of 1,887,548. Arthur J. Gallagher & Co. has a twelve month low of $190.75 and a twelve month high of $294.53. The business has a 50-day moving average of $251.69 and a two-hundred day moving average of $233.96. The company has a market capitalization of $72.46 billion, a price-to-earnings ratio of 43.21, a PEG ratio of 1.59 and a beta of 0.47. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.49.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its earnings results on Thursday, October 29th. The financial services provider reported $3.00 EPS for the quarter, topping analysts' consensus estimates of $2.99 by $0.01. The firm had revenue of $3.92 billion during the quarter, compared to the consensus estimate of $3.98 billion. Arthur J. Gallagher & Co. had a net margin of 10.39% and a return on equity of 13.90%. The company's revenue was up 19.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.32 earnings per share. On average, equities analysts predict that Arthur J. Gallagher & Co. will post 13.13 EPS for the current year.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Monday, December 7th will be issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Monday, December 7th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is presently 42.81%.

Insider Activity

In other Arthur J. Gallagher & Co. news, General Counsel Walter D. Bay sold 12,000 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $270.08, for a total value of $3,240,960.00. Following the completion of the sale, the general counsel owned 71,292 shares of the company's stock, valued at $19,254,543.36. This trade represents a 14.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Susan E. Pietrucha sold 15,020 shares of Arthur J. Gallagher & Co. stock in a transaction on Monday, November 9th. The stock was sold at an average price of $282.30, for a total transaction of $4,240,146.00. Following the sale, the insider directly owned 16,791 shares in the company, valued at $4,740,099.30. This trade represents a 47.22% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 105,616 shares of company stock worth $29,193,156 in the last ninety days. 1.40% of the stock is currently owned by company insiders.

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

A number of hedge funds have recently added to or reduced their stakes in AJG. Horizon Kinetics Asset Management LLC boosted its holdings in shares of Arthur J. Gallagher & Co. by 715,906.4% during the third quarter. Horizon Kinetics Asset Management LLC now owns 9,694,727 shares of the financial services provider's stock valued at $2,211,464,000 after acquiring an additional 9,693,373 shares during the period. Gtcr LLC acquired a new position in Arthur J. Gallagher & Co. during the 1st quarter valued at about $514,112,000. Janus Henderson Group PLC grew its position in Arthur J. Gallagher & Co. by 5.4% in the 1st quarter. Janus Henderson Group PLC now owns 1,970,990 shares of the financial services provider's stock worth $426,887,000 after purchasing an additional 101,431 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Arthur J. Gallagher & Co. by 23.0% in the first quarter. Bank of America Corp DE now owns 1,854,488 shares of the financial services provider's stock valued at $401,645,000 after purchasing an additional 346,409 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Arthur J. Gallagher & Co. by 0.3% in 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 during the period. Institutional investors and hedge funds own 85.53% of the company's stock.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co. is a global insurance brokerage and risk management services firm. It helps businesses and other organizations assess and manage risk, arrange insurance coverage, and address employee benefits needs. The company's services include insurance brokerage, risk management consulting, employee benefits consulting, and claims and settlement services through its Gallagher Bassett business. It serves clients in the United States and internationally, including through a network of correspondent brokers.

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.