Arthur J. Gallagher & Co. $AJG Shares Sold by Alley Investment Management Company LLC

Key Points

• Alley Investment Management cut its stake in Arthur J. Gallagher & Co. by 45.8% in the first quarter, leaving it with 22,095 shares valued at about $4.8 million.
• Arthur J. Gallagher & Co. reported Q1 earnings of $4.47 per share, topping estimates, while revenue rose 29% from a year earlier to $4.71 billion.
• The company paid a quarterly dividend of $0.70 per share, and analysts remain constructive overall with a consensus rating of Moderate Buy and a target price of $264.12.

Alley Investment Management Company LLC lowered its stake in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 45.8% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 22,095 shares of the financial services provider's stock after selling 18,650 shares during the quarter. Alley Investment Management Company LLC's holdings in Arthur J. Gallagher & Co. were worth $4,785,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in AJG. Dearborn Partners LLC boosted its holdings in Arthur J. Gallagher & Co. by 6.3% in the 4th quarter. Dearborn Partners LLC now owns 133,936 shares of the financial services provider's stock valued at $34,661,000 after purchasing an additional 7,946 shares in the last quarter. Banco Bilbao Vizcaya Argentaria S.A. raised its stake in shares of Arthur J. Gallagher & Co. by 10.2% during the 3rd quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 65,889 shares of the financial services provider's stock worth $20,398,000 after buying an additional 6,090 shares in the last quarter. Professional Advisory Services Inc. lifted its holdings in shares of Arthur J. Gallagher & Co. by 12.2% in the 4th quarter. Professional Advisory Services Inc. now owns 78,448 shares of the financial services provider's stock valued at $20,302,000 after buying an additional 8,539 shares during the period. Seizert Capital Partners LLC purchased a new stake in shares of Arthur J. Gallagher & Co. in the fourth quarter valued at approximately $3,571,000. Finally, Teachers Retirement System of The State of Kentucky grew its holdings in Arthur J. Gallagher & Co. by 127.3% during the third quarter. Teachers Retirement System of The State of Kentucky now owns 44,777 shares of the financial services provider's stock worth $13,869,000 after acquiring an additional 25,080 shares during the period. 85.53% of the stock is owned by hedge funds and other institutional investors.

Arthur J. Gallagher & Co. Stock Performance

NYSE:AJG opened at $229.88 on Wednesday. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $59.06 billion, a P/E ratio of 37.20, a price-to-earnings-growth ratio of 1.15 and a beta of 0.52. The firm has a 50-day moving average price of $210.71 and a two-hundred day moving average price of $225.73. Arthur J. Gallagher & Co. has a twelve month low of $190.75 and a twelve month high of $323.25.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The financial services provider reported $4.47 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $4.71 billion for the quarter, compared to the consensus estimate of $4.73 billion. During the same quarter in the prior year, the firm earned $3.67 earnings per share. The company's revenue for the quarter was up 29.0% compared to the same quarter last year. As a group, research analysts expect that Arthur J. Gallagher & Co. will post 13.23 earnings per share for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Friday, June 5th were given a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Friday, June 5th. Arthur J. Gallagher & Co.'s dividend payout ratio is currently 45.31%.

Wall Street Analyst Weigh In

AJG has been the subject of several research analyst reports. Mizuho cut their price objective on Arthur J. Gallagher & Co. from $260.00 to $259.00 and set an "outperform" rating for the company in a research report on Monday, April 13th. Jefferies Financial Group raised shares of Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and upped their price target for the stock from $235.00 to $265.00 in a research note on Thursday, June 11th. Royal Bank Of Canada assumed coverage on shares of Arthur J. Gallagher & Co. in a report on Tuesday, March 17th. They issued an "outperform" rating and a $260.00 price target for the company. Morgan Stanley decreased their price objective on shares of Arthur J. Gallagher & Co. from $265.00 to $240.00 and set an "overweight" rating on the stock in a report on Thursday, May 21st. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Arthur J. Gallagher & Co. in a research report on Monday, June 15th. Thirteen equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $264.12.

Insider Activity

In related news, CAO Richard C. Cary sold 3,000 shares of the stock in a transaction 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 sale, the chief accounting officer owned 47,819 shares of the company's stock, valued at $9,850,714. This trade 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 is available at the SEC website. 1.40% of the stock is owned by corporate insiders.

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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