Arthur J. Gallagher & Co. $AJG Shares Sold by AIA Group Ltd

Key Points

• AIA Group Ltd cut its stake in Arthur J. Gallagher & Co. by 30.8% in the first quarter, selling 8,114 shares and leaving it with 18,195 shares worth about $3.94 million.
• Arthur J. Gallagher & Co. reported better-than-expected quarterly earnings, posting $4.47 EPS versus $4.43 expected, while revenue rose 29% year over year to $4.71 billion.
• Wall Street sentiment remains constructive, with several firms raising price targets; the stock currently has a Moderate Buy consensus and an average target price of $280.35.

AIA Group Ltd reduced its holdings in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 30.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 18,195 shares of the financial services provider's stock after selling 8,114 shares during the period. AIA Group Ltd's holdings in Arthur J. Gallagher & Co. were worth $3,941,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Kemnay Advisory Services Inc. acquired a new stake in Arthur J. Gallagher & Co. in the 4th quarter valued at about $26,000. MV Capital Management Inc. acquired a new position in shares of Arthur J. Gallagher & Co. during the fourth quarter worth about $34,000. Rakuten Securities Inc. grew its position in shares of Arthur J. Gallagher & Co. by 650.0% during the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock worth $34,000 after buying an additional 91 shares in the last quarter. Avalon Trust Co purchased a new stake in shares of Arthur J. Gallagher & Co. during the first quarter worth approximately $40,000. Finally, Prosperity Bancshares Inc acquired a new stake in Arthur J. Gallagher & Co. in the fourth quarter valued at approximately $42,000. 85.53% of the stock is owned by institutional investors and hedge funds.

Arthur J. Gallagher & Co. Stock Up 0.2%

Arthur J. Gallagher & Co. stock opened at $254.36 on Monday. The company has a market capitalization of $65.35 billion, a P/E ratio of 41.16, a PEG ratio of 1.31 and a beta of 0.50. Arthur J. Gallagher & Co. has a fifty-two week low of $190.75 and a fifty-two week high of $316.71. The stock has a 50-day simple moving average of $221.35 and a 200-day simple moving average of $225.41. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.06 and a current ratio of 1.06.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its earnings results on Thursday, April 30th. The financial services provider reported $4.47 EPS for the quarter, beating analysts' consensus estimates of $4.43 by $0.04. Arthur J. Gallagher & Co. had a net margin of 10.76% and a return on equity of 12.83%. The business had revenue of $4.71 billion for the quarter, compared to analysts' expectations of $4.73 billion. During the same period in the previous year, the company posted $3.67 EPS. The company's quarterly revenue was up 29.0% on a year-over-year basis. Equities research analysts expect that Arthur J. Gallagher & Co. will post 13.22 earnings per share for the current year.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, June 5th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is 45.31%.

Wall Street Analyst Weigh In

Several research firms have commented on AJG. Royal Bank Of Canada boosted their price target on shares of Arthur J. Gallagher & Co. from $260.00 to $300.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Morgan Stanley raised their price objective on shares of Arthur J. Gallagher & Co. from $240.00 to $255.00 and gave the company an "overweight" rating in a report on Monday, July 6th. Truist Financial lowered their target price on shares of Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, May 1st. BMO Capital Markets raised Arthur J. Gallagher & Co. from a "market perform" rating to an "outperform" rating and increased their target price for the company from $275.00 to $278.00 in a report on Tuesday, March 24th. Finally, Wells Fargo & Company raised their price target on Arthur J. Gallagher & Co. from $271.00 to $299.00 and gave the company an "overweight" rating in a research note on Thursday, July 9th. Thirteen research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $280.35.

Insider Activity

In other news, CAO Richard C. Cary sold 3,000 shares of the company's stock in a transaction that occurred on 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 sale, the chief accounting officer owned 47,819 shares in the company, valued at $9,850,714. This represents a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 1.40% 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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