DOWLING & PARTN Has Pessimistic View of AON FY2027 Earnings

Key Points

• DOWLING & PARTN cut Aon’s FY2027 EPS forecast to $20.00 from $21.00, though the revised estimate remains above the current consensus of $18.94.
• Aon’s latest quarterly results narrowly beat expectations, with EPS of $3.81 versus $3.80 expected, while revenue rose 2.2% year over year to $4.25 billion but fell short of estimates.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and a $399.12 average price target, despite several firms recently reducing their targets. Aon shares opened at $304.82, near their one-year low.

Aon plc (NYSE:AON - Free Report) - Investment analysts at DOWLING & PARTN lowered their FY2027 earnings estimates for AON in a research note issued on Tuesday, September 8th. DOWLING & PARTN analyst J. Christiana now forecasts that the financial services provider will post earnings per share of $20.00 for the year, down from their prior estimate of $21.00. The consensus estimate for AON's current full-year earnings is $18.94 per share.

AON (NYSE:AON - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 EPS for the quarter, topping the consensus estimate of $3.80 by $0.01. AON had a return on equity of 42.13% and a net margin of 22.27%.The business had revenue of $4.25 billion for the quarter, compared to analyst estimates of $4.28 billion. During the same quarter in the previous year, the company earned $3.49 EPS. The company's quarterly revenue was up 2.2% on a year-over-year basis.

Several other analysts have also weighed in on the company. Piper Sandler lowered their target price on AON from $391.00 to $349.00 and set a "neutral" rating on the stock in a report on Tuesday, September 1st. Citigroup boosted their price objective on shares of AON from $420.00 to $435.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Wells Fargo & Company lowered their price objective on shares of AON from $419.00 to $383.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 1st. Cantor Fitzgerald cut their target price on shares of AON from $445.00 to $433.00 and set an "overweight" rating for the company in a research report on Tuesday, September 1st. Finally, Morgan Stanley upped their price target on shares of AON from $380.00 to $410.00 and gave the company an "overweight" rating in a report on Wednesday, August 19th. Twelve investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $399.12.

AON Stock Performance

Shares of AON stock opened at $304.82 on Thursday. The stock has a fifty day moving average price of $352.40 and a 200 day moving average price of $334.03. The company has a debt-to-equity ratio of 1.34, a quick ratio of 1.54 and a current ratio of 1.54. The stock has a market cap of $64.66 billion, a PE ratio of 16.80, a P/E/G ratio of 1.60 and a beta of 0.66. AON has a 1 year low of $303.59 and a 1 year high of $382.34.

AON Dividend Announcement

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

Insider Transactions at AON

In other news, Director Lester Knight bought 20,000 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The stock was purchased at an average price of $327.48 per share, with a total value of $6,549,600.00. Following the purchase, the director owned 163,000 shares of the company's stock, valued at $53,379,240. This trade represents a 13.99% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, General Counsel Darren Zeidel sold 1,900 shares of the company's stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total transaction of $717,744.00. Following the completion of the transaction, the general counsel owned 11,504 shares in the company, valued at approximately $4,345,751.04. This trade represents a 14.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 4,450 shares of company stock valued at $1,659,242. 1.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC grew its position in shares of AON by 10.9% in the second quarter. Sequoia Financial Advisors LLC now owns 17,646 shares of the financial services provider's stock valued at $5,853,000 after purchasing an additional 1,739 shares during the period. National Pension Service boosted its stake in AON by 2.0% in the 2nd quarter. National Pension Service now owns 484,892 shares of the financial services provider's stock worth $160,834,000 after buying an additional 9,349 shares during the last quarter. Integrated Wealth Concepts LLC boosted its stake in AON by 9.2% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 14,315 shares of the financial services provider's stock worth $4,748,000 after buying an additional 1,208 shares during the last quarter. NewEdge Advisors LLC grew its holdings in AON by 3.5% in the 2nd quarter. NewEdge Advisors LLC now owns 6,898 shares of the financial services provider's stock valued at $2,288,000 after buying an additional 234 shares during the period. Finally, IFP Advisors Inc increased its stake in shares of AON by 183.3% during the 2nd quarter. IFP Advisors Inc now owns 1,592 shares of the financial services provider's stock valued at $528,000 after acquiring an additional 1,030 shares during the last quarter. 86.14% of the stock is currently owned by institutional investors and hedge funds.

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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