29,178 Shares in Arthur J. Gallagher & Co. $AJG Acquired by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital acquired 29,178 AJG shares worth approximately $6.3 million, while other institutional investors also increased or initiated positions. Institutions collectively own 85.53% of Arthur J. Gallagher’s stock.
• Analysts remain broadly positive, with 13 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $285.29 after several firms raised their targets.
• Gallagher’s second-quarter adjusted EPS of $2.84 exceeded expectations, and revenue rose 24.3% year over year to $3.95 billion, though revenue missed estimates and reported net income and diluted EPS declined. The company also announced a $0.70 quarterly dividend and repurchased about $170 million of shares.

Arrowstreet Capital Limited Partnership bought a new stake in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund bought 29,178 shares of the financial services provider's stock, valued at approximately $6,319,000.

Several other institutional investors and hedge funds also recently modified their holdings of AJG. Jump Financial LLC acquired a new position in shares of Arthur J. Gallagher & Co. in the 2nd quarter worth approximately $2,825,000. Qube Research & Technologies Ltd bought a new stake in Arthur J. Gallagher & Co. during the second quarter worth approximately $3,429,000. Treasurer of the State of North Carolina grew its position in Arthur J. Gallagher & Co. by 5.3% in the second quarter. Treasurer of the State of North Carolina now owns 118,467 shares of the financial services provider's stock worth $37,924,000 after buying an additional 5,947 shares during the last quarter. Peapack Gladstone Financial Corp increased its holdings in shares of Arthur J. Gallagher & Co. by 2,919.2% in the second quarter. Peapack Gladstone Financial Corp now owns 19,987 shares of the financial services provider's stock valued at $6,398,000 after buying an additional 19,325 shares in the last quarter. Finally, Armistice Capital LLC acquired a new stake in shares of Arthur J. Gallagher & Co. during the 2nd quarter valued at $412,000. Institutional investors own 85.53% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have commented on AJG. Weiss Ratings raised shares of Arthur J. Gallagher & Co. from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 13th. Piper Sandler boosted their price target on shares of Arthur J. Gallagher & Co. from $276.00 to $287.00 and gave the company an "overweight" rating in a report on Friday. UBS Group upped their price target on shares of Arthur J. Gallagher & Co. from $250.00 to $291.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Morgan Stanley lifted their price objective on shares of Arthur J. Gallagher & Co. from $240.00 to $255.00 and gave the stock an "overweight" rating in a research report on Monday, July 6th. Finally, Cantor Fitzgerald boosted their target price 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. Thirteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Arthur J. Gallagher & Co. currently has an average rating of "Moderate Buy" and an average target price of $285.29.

Insiders Place Their Bets

In related news, CAO Richard C. Cary sold 3,000 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total transaction of $618,000.00. Following the completion of the transaction, the chief accounting officer owned 47,819 shares of the company's stock, valued at approximately $9,850,714. The trade was a 5.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.40% of the stock is currently owned by corporate insiders.

Trending Headlines about Arthur J. Gallagher & Co.

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

• Positive Sentiment: Second-quarter adjusted earnings were $2.84 per share, exceeding the $2.81 analyst consensus and rising from $2.33 a year earlier. Revenue increased 24.3% year over year to approximately $3.95 billion, supported by acquisitions and 6% organic growth across the Brokerage and Risk Management segments. Arthur J. Gallagher quarterly earnings report
• Positive Sentiment: Analysts raised their outlooks following the earnings release. RBC lifted its price target to $310 from $300 and retained an Outperform rating, while Mizuho raised its target to $300 from $287 and also maintained Outperform. William Blair reaffirmed its Buy rating, citing cash EPS growth, resilient brokerage performance and potential upside from mergers and acquisitions. William Blair Buy rating reaffirmed
• Positive Sentiment: Gallagher repurchased roughly 900,000 shares for about $170 million during the quarter and declared a quarterly dividend of $0.70 per share, providing additional shareholder returns. Arthur J. Gallagher second-quarter results
• Neutral Sentiment: Truist raised its target to $265 but kept a Hold rating, while Keefe, Bruyette & Woods increased its target to $271 and maintained Market Perform. The mixed ratings suggest analysts see valuation and execution risks despite longer-term growth potential. Analyst price-target changes
• Negative Sentiment: Revenue fell short of the approximately $4.01 billion consensus estimate as higher expenses and lower interest income offset otherwise strong operating growth. Reported net earnings declined to $324 million from $368 million a year earlier, while reported diluted EPS fell to $1.25 from $1.40. These results likely explain why the stock has decreased despite the adjusted EPS beat. AJG second-quarter earnings analysis
• Negative Sentiment: Investors remain concerned that acquisitions are contributing more to headline growth while insurance-broker organic growth could moderate. With AJG trading at a relatively high earnings multiple, the revenue miss and profitability pressure may have prompted profit-taking after the results.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG opened at $249.35 on Monday. The firm has a market cap of $64.06 billion, a price-to-earnings ratio of 41.35, a price-to-earnings-growth ratio of 1.29 and a beta of 0.50. The company's fifty day moving average is $231.67 and its 200-day moving average is $224.80. The company has a quick ratio of 1.06, a current ratio of 1.05 and a debt-to-equity ratio 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 released its quarterly earnings data on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.81 by $0.03. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.28%. The business had revenue of $3.95 billion during the quarter, compared to analyst estimates of $4.01 billion. During the same quarter in the previous year, the business earned $2.33 EPS. Arthur J. Gallagher & Co.'s quarterly revenue was up 24.3% compared to the same quarter last year. Equities analysts expect that Arthur J. Gallagher & Co. will post 13.22 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The company also recently announced 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. This represents a $2.80 annualized dividend and a yield of 1.1%. The ex-dividend date is Tuesday, September 8th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is 46.43%.

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.

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