106,196 Shares in Arthur J. Gallagher & Co. $AJG Acquired by Bowie Capital Management LLC

Key Points

• Bowie Capital Management LLC acquired a new stake of 106,196 shares of Arthur J. Gallagher & Co. (NYSE:AJG) in Q3, worth about $32.9 million and representing roughly 1.4% of Bowie’s portfolio (its 21st-largest holding).
• AJG beat quarterly EPS estimates ($2.38 vs. $2.35) with revenue up 33.9% year‑over‑year; the company has a market cap of about $58.7 billion and a consensus analyst rating of "Hold" with an average target of $281.76.
• Arthur J. Gallagher & Co. raised its quarterly dividend to $0.70 (annualized $2.80) for a ~1.2% yield, with an ex-dividend date of March 6 and payment on March 20.

Bowie Capital Management LLC acquired a new stake in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 106,196 shares of the financial services provider's stock, valued at approximately $32,893,000. Arthur J. Gallagher & Co. makes up about 1.4% of Bowie Capital Management LLC's portfolio, making the stock its 21st biggest position.

A number of other institutional investors and hedge funds have also modified their holdings of the business. Caprock Group LLC bought a new position in Arthur J. Gallagher & Co. during the 3rd quarter valued at about $9,877,000. JPMorgan Chase & Co. grew its stake in shares of Arthur J. Gallagher & Co. by 19.6% in the third quarter. JPMorgan Chase & Co. now owns 20,338,533 shares of the financial services provider's stock worth $6,299,674,000 after acquiring an additional 3,330,205 shares during the period. Factory Mutual Insurance Co. raised its holdings in shares of Arthur J. Gallagher & Co. by 107.1% during the second quarter. Factory Mutual Insurance Co. now owns 14,500 shares of the financial services provider's stock valued at $4,642,000 after purchasing an additional 7,500 shares during the last quarter. Boston Partners lifted its position in Arthur J. Gallagher & Co. by 0.4% during the second quarter. Boston Partners now owns 735,759 shares of the financial services provider's stock valued at $234,226,000 after purchasing an additional 2,806 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in Arthur J. Gallagher & Co. by 4.2% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,381,835 shares of the financial services provider's stock worth $762,473,000 after purchasing an additional 94,940 shares during the last quarter. Institutional investors own 85.53% of the company's stock.

Arthur J. Gallagher & Co. Trading Down 0.5%

Shares of AJG stock opened at $228.40 on Friday. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.06 and a quick ratio of 1.06. The company has a market cap of $58.72 billion, a price-to-earnings ratio of 37.14, a PEG ratio of 1.11 and a beta of 0.67. Arthur J. Gallagher & Co. has a 1 year low of $195.00 and a 1 year high of $351.23. The firm has a fifty day moving average price of $239.88 and a 200-day moving average price of $263.43.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its quarterly earnings results on Thursday, January 29th. The financial services provider reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.35 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 12.13% and a net margin of 11.84%.The business had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.61 billion. During the same quarter in the previous year, the company posted $1.12 earnings per share. Arthur J. Gallagher & Co.'s revenue for the quarter was up 33.9% on a year-over-year basis. As a group, equities analysts predict that Arthur J. Gallagher & Co. will post 11.54 earnings per share for the current year.

Arthur J. Gallagher & Co. Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be issued a $0.70 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $2.80 annualized dividend and a yield of 1.2%. This is a positive change from Arthur J. Gallagher & Co.'s previous quarterly dividend of $0.65. Arthur J. Gallagher & Co.'s payout ratio is currently 42.28%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on AJG shares. Piper Sandler decreased their target price on shares of Arthur J. Gallagher & Co. from $249.00 to $226.00 and set a "neutral" rating for the company in a research note on Monday, February 23rd. Needham & Company LLC set a $272.00 price objective on Arthur J. Gallagher & Co. in a report on Thursday, December 18th. Wall Street Zen upgraded Arthur J. Gallagher & Co. from a "sell" rating to a "hold" rating in a research report on Saturday, February 21st. BMO Capital Markets downgraded Arthur J. Gallagher & Co. from an "outperform" rating to a "market perform" rating and lowered their target price for the company from $289.00 to $275.00 in a report on Tuesday, January 13th. Finally, Keefe, Bruyette & Woods cut their price target on Arthur J. Gallagher & Co. from $279.00 to $249.00 and set a "market perform" rating for the company in a research note on Friday, January 30th. Seven research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Arthur J. Gallagher & Co. presently has a consensus rating of "Hold" and an average target price of $281.76.

Insiders Place Their Bets

In other news, General Counsel Walter D. Bay sold 15,850 shares of the stock in a transaction on Friday, December 19th. The shares were sold at an average price of $255.00, for a total value of $4,041,750.00. Following the completion of the sale, the general counsel directly owned 79,549 shares of the company's stock, valued at $20,284,995. This represents a 16.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Christopher E. Mead sold 4,000 shares of the firm's stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $258.11, for a total transaction of $1,032,440.00. Following the sale, the vice president owned 17,327 shares in the company, valued at $4,472,271.97. The trade was a 18.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 24,850 shares of company stock worth $6,364,440. Company insiders own 1.60% of the company's stock.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company's core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.

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