125,858 Shares in Arthur J. Gallagher & Co. $AJG Bought by Dearborn Partners LLC

Key Points

• Dearborn Partners acquired 125,858 AJG shares worth approximately $27.3 million, making Arthur J. Gallagher its 25th-largest holding and representing about 1.5% of its portfolio. Institutional investors collectively own 85.53% of the company.
• Arthur J. Gallagher reported quarterly EPS of $2.84, exceeding estimates by $0.03, while revenue rose 24.3% year over year to $3.95 billion, slightly below expectations.
• The company declared a quarterly dividend of $0.70, equivalent to $2.80 annually and a 1.0% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $290.28.

Dearborn Partners LLC acquired a new position in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 125,858 shares of the financial services provider's stock, valued at approximately $27,258,000. Arthur J. Gallagher & Co. makes up approximately 1.5% of Dearborn Partners LLC's investment portfolio, making the stock its 25th biggest holding.

A number of other hedge funds have also recently modified their holdings of the business. Norges Bank purchased a new position in Arthur J. Gallagher & Co. during the 4th quarter valued at about $1,925,062,000. T. Rowe Price Investment Management Inc. grew its holdings in Arthur J. Gallagher & Co. by 123.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 5,887,538 shares of the financial services provider's stock worth $1,523,636,000 after purchasing an additional 3,253,498 shares during the period. Gtcr LLC bought a new position in shares of Arthur J. Gallagher & Co. during the first quarter valued at approximately $514,112,000. Bank of New York Mellon Corp purchased a new position in shares of Arthur J. Gallagher & Co. during the second quarter valued at approximately $289,484,000. Finally, Northwestern Mutual Wealth Management Co. boosted its position in shares of Arthur J. Gallagher & Co. by 9,244.9% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,053,636 shares of the financial services provider's stock worth $272,670,000 after purchasing an additional 1,042,361 shares in the last quarter. Institutional investors own 85.53% of the company's stock.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG stock opened at $271.99 on Tuesday. The firm has a market capitalization of $69.71 billion, a PE ratio of 45.11, a P/E/G ratio of 1.62 and a beta of 0.50. The company has a 50 day moving average price of $245.63 and a 200-day moving average price of $225.06. Arthur J. Gallagher & Co. has a 52 week low of $190.75 and a 52 week high of $313.55. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.50.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its earnings results on Thursday, July 30th. The financial services provider reported $2.84 EPS for the quarter, topping analysts' consensus estimates of $2.81 by $0.03. The business had revenue of $3.95 billion during the quarter, compared to the consensus estimate of $4.01 billion. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.28%. The firm's revenue was up 24.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.33 EPS. As a group, equities research analysts expect that Arthur J. Gallagher & Co. will post 13.27 earnings per share for the current year.

Arthur J. Gallagher & Co. Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Tuesday, September 8th will be issued a $0.70 dividend. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $2.80 annualized dividend and a dividend yield of 1.0%. Arthur J. Gallagher & Co.'s payout ratio is presently 46.43%.

Insiders Place Their Bets

In other Arthur J. Gallagher & Co. news, CAO Richard C. Cary sold 3,000 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total value of $618,000.00. Following the transaction, the chief accounting officer owned 47,819 shares of the company's stock, valued at approximately $9,850,714. This represents a 5.90% 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, VP Christopher E. Mead sold 3,500 shares of the firm's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $257.02, for a total value of $899,570.00. Following the completion of the transaction, the vice president directly owned 22,223 shares in the company, valued at $5,711,755.46. The trade was a 13.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.40% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

AJG has been the subject of a number of recent research reports. Wells Fargo & Company lowered their price objective on Arthur J. Gallagher & Co. from $299.00 to $296.00 and set an "overweight" rating for the company in a research note on Monday, August 3rd. Morgan Stanley upped their price target on shares of Arthur J. Gallagher & Co. from $270.00 to $290.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 19th. Cantor Fitzgerald raised their price objective on shares of Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Mizuho increased their price target on shares of Arthur J. Gallagher & Co. from $287.00 to $300.00 and gave the company an "outperform" rating in a report on Friday, July 31st. Finally, UBS Group upped their price objective on Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the company a "buy" rating in a research report on Monday, August 3rd. Fourteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Arthur J. Gallagher & Co. presently has an average rating of "Moderate Buy" and an average price target of $290.28.

About Arthur J. Gallagher & Co.

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source