Aon plc $AON Stake Lowered by Mawer Investment Management Ltd.

Key Points

• Mawer Investment Management cut its Aon stake by 20.8% in the third quarter, selling 243,131 shares; it retained 928,493 shares valued at about $257 million.
• Aon’s latest quarterly results topped estimates: earnings were $3.36 per share versus $3.30 expected, while revenue of $4.10 billion rose 2.6% year over year.
• Analyst views are mixed, with a consensus “Hold” rating and a $374 target price. Separately, Aon director Lester Knight bought 20,000 shares.

Mawer Investment Management Ltd. lessened its holdings in shares of Aon plc (NYSE:AON - Free Report) by 20.8% during the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 928,493 shares of the financial services provider's stock after selling 243,131 shares during the period. AON accounts for about 1.9% of Mawer Investment Management Ltd.'s portfolio, making the stock its 18th largest position. Mawer Investment Management Ltd. owned 0.44% of AON worth $256,979,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in AON. Diversify Advisory Services LLC raised its stake in shares of AON by 5,225.7% in the third quarter. Diversify Advisory Services LLC now owns 194,070 shares of the financial services provider's stock worth $53,713,000 after acquiring an additional 190,426 shares during the last quarter. NBT Bank N.A. acquired a new position in shares of AON during the third quarter worth approximately $10,117,000. Salem Investment Counselors Inc. lifted its position in shares of AON by 638.1% during the third quarter. Salem Investment Counselors Inc. now owns 5,639 shares of the financial services provider's stock worth $1,561,000 after purchasing an additional 4,875 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in shares of AON by 955.5% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 305,099 shares of the financial services provider's stock valued at $84,442,000 after purchasing an additional 276,194 shares during the last quarter. Finally, Farmers & Merchants Investments Inc. grew its stake in shares of AON by 76,726.4% during the third quarter. Farmers & Merchants Investments Inc. now owns 113,703 shares of the financial services provider's stock valued at $31,470,000 after purchasing an additional 113,555 shares during the last quarter. 86.14% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other AON news, Director Lester Knight bought 20,000 shares of the stock in a transaction 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 acquisition, the director owned 163,000 shares of the company's stock, valued at approximately $53,379,240. The trade was a 13.99% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 1.00% of the company's stock.

AON Trading Up 1.5%

Shares of NYSE AON traded up $4.86 during mid-day trading on Friday, hitting $338.28. The company's stock had a trading volume of 611,457 shares, compared to its average volume of 1,512,922. The stock has a market cap of $71.77 billion, a price-to-earnings ratio of 18.53, a price-to-earnings-growth ratio of 1.76 and a beta of 0.63. The company has a debt-to-equity ratio of 2.58, a current ratio of 4.72 and a quick ratio of 4.72. Aon plc has a one year low of $266.33 and a one year high of $382.34. The company's fifty day simple moving average is $300.84 and its 200-day simple moving average is $325.95.

AON (NYSE:AON - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The financial services provider reported $3.36 EPS for the quarter, topping the consensus estimate of $3.30 by $0.06. The company had revenue of $4.10 billion during the quarter, compared to analysts' expectations of $4.08 billion. AON had a net margin of 22.24% and a return on equity of 40.46%. AON's revenue was up 2.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.05 EPS. On average, sell-side analysts anticipate that Aon plc will post 18.44 earnings per share for the current fiscal year.

AON Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, November 13th. Shareholders of record on Monday, November 2nd were issued a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Monday, November 2nd. AON's payout ratio is currently 17.96%.

Analysts Set New Price Targets

Several research analysts recently weighed in on AON shares. Morgan Stanley dropped their price objective on shares of AON from $410.00 to $350.00 and set an "overweight" rating for the company in a research report on Tuesday, October 6th. Mizuho upped their price objective on AON from $363.00 to $373.00 and gave the stock an "outperform" rating in a report on Friday. The Goldman Sachs Group increased their price objective on AON from $375.00 to $401.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Jefferies Financial Group lowered their target price on AON from $387.00 to $383.00 and set a "buy" rating for the company in a research note on Wednesday, September 30th. Finally, Zacks Research downgraded AON from a "hold" rating to a "strong sell" rating in a research report on Monday, October 26th. Thirteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $374.00.

Key Headlines Impacting AON

Investors following AON have been watching these headlines:

• Positive Sentiment: Mizuho raised its price target to $373 from $363 and maintained an “outperform” rating, implying about 10.3% upside from the cited $338.28 price. Mizuho stock recommendations
• Neutral Sentiment: Aon was appointed to provide professional indemnity insurance for members of the Royal Institution of Chartered Surveyors. The appointment may support business, though its financial contribution was not specified. Aon appointed to provide PI insurance for RICS members
• Neutral Sentiment: Aon reported that disaster losses reached $91 billion amid more billion-dollar events. Greater catastrophe exposure could increase demand for risk and insurance services, but the report’s direct effect on Aon was not specified. Disaster losses hit $91 billion

AON Company Profile

Aon plc is a global professional services firm that helps organizations manage risk and make decisions about their people and finances. Its services include insurance brokerage, risk consulting, reinsurance solutions, employee benefits consulting and retirement and investment advisory services. The company serves businesses and institutions across a broad range of industries and geographies. Aon was formed in 1982 as Ryan Insurance Group and adopted the Aon name in 1987. It is headquartered in Dublin, Ireland, and operates internationally.

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