Aon plc $AON Position Raised by Wellington Management Group LLP

Key Points

• Wellington Management increased its Aon position by 16.4% in the second quarter to 106,370 shares valued at approximately $35.3 million. Institutional investors collectively own 86.14% of Aon’s stock.
• Aon’s shares opened at $322.57, near the lower end of their 52-week range, after mixed analyst actions. The stock retains a “Moderate Buy” consensus, with an average price target of $399.12, although Mizuho and Piper Sandler recently reduced their targets.
• Aon reported quarterly EPS of $3.81, narrowly exceeding estimates, while revenue rose 2.2% year over year to $4.25 billion. Growth opportunities include strong insurance-linked securities demand, though analysts remain concerned about leverage and integration risks from the planned $17 billion USI acquisition.

Wellington Management Group LLP raised its position in shares of Aon plc (NYSE:AON - Free Report) by 16.4% in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 106,370 shares of the financial services provider's stock after purchasing an additional 14,996 shares during the quarter. Wellington Management Group LLP owned about 0.05% of AON worth $35,282,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. City National Bank of Florida MSD lifted its holdings in shares of AON by 3.8% in the fourth quarter. City National Bank of Florida MSD now owns 867 shares of the financial services provider's stock valued at $306,000 after buying an additional 32 shares during the period. MassMutual Private Wealth & Trust FSB raised its position in AON by 5.3% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 650 shares of the financial services provider's stock worth $216,000 after acquiring an additional 33 shares in the last quarter. Larson Financial Group LLC lifted its holdings in AON by 0.4% in the 4th quarter. Larson Financial Group LLC now owns 9,584 shares of the financial services provider's stock valued at $3,382,000 after acquiring an additional 34 shares during the last quarter. Aspen Grove Capital LLC boosted its position in shares of AON by 4.8% during the 1st quarter. Aspen Grove Capital LLC now owns 737 shares of the financial services provider's stock valued at $238,000 after purchasing an additional 34 shares in the last quarter. Finally, J.W. Cole Advisors Inc. grew its stake in shares of AON by 1.9% in the 4th quarter. J.W. Cole Advisors Inc. now owns 1,863 shares of the financial services provider's stock worth $648,000 after purchasing an additional 35 shares during the last quarter. Institutional investors own 86.14% of the company's stock.

More AON News

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon director Lester Knight purchased 20,000 shares for approximately $6.55 million, increasing his direct holdings by nearly 14%. The sizable insider purchase may signal confidence that the recent weakness has created attractive value. Aon director stock purchase filing
• Positive Sentiment: Aon executives highlighted strong demand for insurance-linked securities and expect continued growth through year-end and into 2027. A more flexible reinsurance market, supported by approximately $800 billion of capital, could increase transaction activity and benefit Aon’s brokerage and advisory operations. Strong ILS demand and continued growth expected
• Positive Sentiment: The company urged insurers to use record reinsurance capacity and third-party capital to support growth, reinforcing the potential for expanding demand for Aon’s capital-markets and risk-transfer services. Aon urges insurers to use reinsurance and third-party capital
• Positive Sentiment: Aon launched a defined-benefit pension “run-on” solution aimed at smaller schemes, broadening its retirement-services offering and potentially creating additional recurring consulting revenue. Aon launches run-on solution
• Neutral Sentiment: Chief Executive Greg Case will speak at the KBW Insurance Conference on September 10, giving investors a potential catalyst for updates on the USI transaction, organic growth and capital allocation. Aon to speak at the KBW Insurance Conference
• Negative Sentiment: Analysis of Aon’s planned $17 billion USI acquisition questioned whether roughly $395 million in expected synergies will adequately offset the risks of another debt-funded megadeal. Leverage and integration concerns may be weighing on valuation. Analysis of Aon’s USI acquisition
• Negative Sentiment: Mizuho lowered its price target while maintaining an outperform rating, adding near-term pressure amid broader uncertainty over valuation and the acquisition’s financing. This caution contrasts with the more bullish view from Keefe, Bruyette & Woods. Mizuho forecast for AON

Insider Activity at AON

In related news, General Counsel Darren Zeidel sold 1,900 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total transaction of $717,744.00. Following the transaction, the general counsel directly owned 11,504 shares of the company's stock, valued at approximately $4,345,751.04. The trade was a 14.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Lester Knight purchased 20,000 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were bought at an average price of $327.48 per share, for a total transaction of $6,549,600.00. Following the completion of the acquisition, the director owned 163,000 shares in the company, valued at $53,379,240. This represents a 13.99% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have sold 4,450 shares of company stock valued at $1,659,242. 1.00% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

AON has been the subject of several recent research reports. TD Cowen reissued a "buy" rating on shares of AON in a research note on Tuesday. Keefe, Bruyette & Woods upped their price target on AON from $412.00 to $417.00 and gave the company an "outperform" rating in a report on Tuesday. Weiss Ratings upgraded AON from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, August 19th. Mizuho decreased their target price on AON from $437.00 to $398.00 and set an "outperform" rating on the stock in a report on Tuesday. Finally, Piper Sandler cut their target price on AON from $391.00 to $349.00 and set a "neutral" rating on the stock in a research report on Tuesday. Twelve equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $399.12.

AON Stock Down 1.4%

Shares of NYSE:AON opened at $322.57 on Friday. The firm has a 50 day simple moving average of $353.58 and a 200 day simple moving average of $334.15. Aon plc has a 52 week low of $304.59 and a 52 week high of $382.34. 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 company has a market cap of $68.42 billion, a PE ratio of 17.78, a price-to-earnings-growth ratio of 1.73 and a beta of 0.66.

AON (NYSE:AON - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, topping the consensus estimate of $3.80 by $0.01. AON had a net margin of 22.27% and a return on equity of 42.13%. The firm had revenue of $4.25 billion for the quarter, compared to analysts' expectations of $4.28 billion. During the same period in the previous year, the company posted $3.49 EPS. The company's quarterly revenue was up 2.2% compared to the same quarter last year. As a group, research analysts expect that Aon plc will post 18.98 earnings per share for the current year.

AON Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Monday, August 3rd were given a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Monday, August 3rd. AON's dividend payout ratio is 18.08%.

About AON

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.

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