Arthur J. Gallagher & Co. $AJG Stock Acquired by First Citizens Bank & Trust Co.

Key Points

• First Citizens Bank & Trust Co. increased its Arthur J. Gallagher stake by 610.8% in the third quarter, holding 7,641 shares worth approximately $1.9 million. Institutional investors and hedge funds collectively own 85.53% of AJG.
• Analysts remain broadly positive, with 16 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $280.74, despite several firms recently lowering their targets.
• Gallagher reported quarterly EPS of $2.84, slightly exceeding estimates, while revenue rose 24.3% year over year to $3.95 billion. The company also paid a quarterly dividend of $0.70 per share, equivalent to a 1.1% annualized yield.

First Citizens Bank & Trust Co. grew its stake in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 610.8% during the 3rd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 7,641 shares of the financial services provider's stock after purchasing an additional 6,566 shares during the period. First Citizens Bank & Trust Co.'s holdings in Arthur J. Gallagher & Co. were worth $1,904,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Axiom Investment Management LLC acquired a new stake in shares of Arthur J. Gallagher & Co. during the 1st quarter valued at approximately $28,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Arthur J. Gallagher & Co. during the 1st quarter worth approximately $29,000. MV Capital Management Inc. purchased a new stake in shares of Arthur J. Gallagher & Co. during the 4th quarter worth approximately $34,000. Avalon Trust Co acquired a new stake in shares of Arthur J. Gallagher & Co. in the 1st quarter worth approximately $40,000. Finally, Compass Financial Management LLC acquired a new stake in shares of Arthur J. Gallagher & Co. in the 2nd quarter worth approximately $45,000. 85.53% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on AJG shares. Wells Fargo & Company dropped their price target on Arthur J. Gallagher & Co. from $291.00 to $284.00 and set an "overweight" rating for the company in a research report on Monday. Oppenheimer started coverage on Arthur J. Gallagher & Co. in a research note on Wednesday, October 7th. They set a "market perform" rating for the company. Mizuho decreased their price objective on shares of Arthur J. Gallagher & Co. from $292.00 to $271.00 and set an "outperform" rating on the stock in a research report on Wednesday, October 7th. Piper Sandler reissued an "overweight" rating on shares of Arthur J. Gallagher & Co. in a research note on Thursday, September 24th. Finally, Royal Bank Of Canada dropped their target price on shares of Arthur J. Gallagher & Co. from $310.00 to $290.00 and set an "outperform" rating for the company in a report on Thursday, September 24th. Sixteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, Arthur J. Gallagher & Co. currently has an average rating of "Moderate Buy" and a consensus target price of $280.74.

Insider Activity

In other Arthur J. Gallagher & Co. news, VP Scott R. Hudson sold 12,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $264.13, for a total value of $3,169,560.00. Following the completion of the sale, the vice president owned 90,262 shares in the company, valued at $23,840,902.06. The trade was a 11.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Christopher E. Mead sold 3,500 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $257.02, for a total transaction of $899,570.00. Following the transaction, the vice president directly owned 22,223 shares of the company's stock, valued at $5,711,755.46. This trade represents a 13.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 28,500 shares of company stock valued at $7,562,950 over the last quarter. Insiders own 1.40% of the company's stock.

Arthur J. Gallagher & Co. Price Performance

AJG stock opened at $250.17 on Friday. The stock's 50 day moving average price is $246.27 and its 200 day moving average price is $232.02. The firm has a market cap of $64.12 billion, a P/E ratio of 41.49, a PEG ratio of 1.35 and a beta of 0.55. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.05 and a current ratio of 1.05. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $288.33.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $3.95 billion for the quarter, compared to analyst estimates of $4.01 billion. During the same period in the prior year, the firm earned $2.33 EPS. The firm's quarterly revenue was up 24.3% on a year-over-year basis. On average, sell-side analysts expect that Arthur J. Gallagher & Co. will post 13.17 earnings per share for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th were paid a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Tuesday, September 8th. Arthur J. Gallagher & Co.'s payout ratio is presently 46.43%.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company headquartered in Rolling Meadows, Illinois. The company helps businesses, public entities and individuals identify, manage and transfer risk through insurance brokerage, employee benefits consulting, risk management and related advisory services.

Gallagher operates through several businesses, including retail insurance brokerage, wholesale brokerage and reinsurance brokerage. Its Gallagher Re business provides reinsurance broking and advisory services, while Gallagher Bassett provides third-party claims administration and related risk management services.

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