Arthur J. Gallagher & Co. $AJG Stock: Carderock Capital Management Inc. Grows Position

Key Points

• Carderock Capital Management increased its AJG stake by 28.3% in the third quarter, bringing its holdings to 20,947 shares valued at approximately $4.78 million. Institutional investors collectively own 85.53% of the company.
• Analysts maintain a generally positive view, with 16 Buy ratings and five Holds, producing a consensus “Moderate Buy” rating and an average price target of $280.74.
• Arthur J. Gallagher reported quarterly EPS of $2.84, slightly ahead of 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 1.0% annualized yield.

Carderock Capital Management Inc. boosted its stake in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 28.3% in the 3rd quarter, according to its most recent filing with the SEC. The fund owned 20,947 shares of the financial services provider's stock after purchasing an additional 4,617 shares during the period. Carderock Capital Management Inc.'s holdings in Arthur J. Gallagher & Co. were worth $4,778,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Triumph Capital Management boosted its position in shares of Arthur J. Gallagher & Co. by 4,000.0% during the third quarter. Triumph Capital Management now owns 123 shares of the financial services provider's stock worth $28,000 after buying an additional 120 shares during the period. NFSG Corp grew its stake in shares of Arthur J. Gallagher & Co. by 4,033.3% in the third quarter. NFSG Corp now owns 124 shares of the financial services provider's stock valued at $28,000 after buying an additional 121 shares in the last quarter. Axiom Investment Management LLC purchased a new stake in shares of Arthur J. Gallagher & Co. in the 1st quarter valued at $28,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Arthur J. Gallagher & Co. in the 1st quarter valued at $29,000. Finally, Physician Wealth Advisors Inc. lifted its stake in Arthur J. Gallagher & Co. by 57.4% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 148 shares of the financial services provider's stock worth $34,000 after acquiring an additional 54 shares in the last quarter. Hedge funds and other institutional investors own 85.53% of the company's stock.

Analysts Set New Price Targets

AJG has been the topic of several research reports. Royal Bank Of Canada reduced their price target on shares of Arthur J. Gallagher & Co. from $310.00 to $290.00 and set an "outperform" rating on the stock in a research report on Thursday, September 24th. Argus boosted their price target on shares of Arthur J. Gallagher & Co. from $267.00 to $300.00 and gave the stock a "buy" rating in a research note on Monday, August 17th. Seaport Research Partners raised Arthur J. Gallagher & Co. to a "buy" rating in a research report on Wednesday, October 7th. UBS Group increased their price objective on Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Finally, BMO Capital Markets decreased their target price on Arthur J. Gallagher & Co. from $278.00 to $255.00 and set an "outperform" rating for the company in a report on Thursday, October 1st. Sixteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, Arthur J. Gallagher & Co. currently has a consensus rating of "Moderate Buy" and an average target price of $280.74.

Arthur J. Gallagher & Co. Price Performance

Shares of AJG opened at $268.28 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.50. Arthur J. Gallagher & Co. has a twelve month low of $190.75 and a twelve month high of $284.17. The firm has a market capitalization of $68.76 billion, a PE ratio of 44.49, a P/E/G ratio of 1.55 and a beta of 0.55. The stock's 50 day moving average is $247.30 and its two-hundred day moving average is $233.76.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly 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 business had revenue of $3.95 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same quarter last year, the firm posted $2.33 EPS. The business's revenue was up 24.3% compared to the same quarter last year. Research analysts anticipate that Arthur J. Gallagher & Co. will post 13.16 earnings per share for the current 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 1.0%. The ex-dividend date of this dividend was Tuesday, September 8th. Arthur J. Gallagher & Co.'s payout ratio is presently 46.43%.

Insider Activity at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, VP Christopher Mead sold 3,500 shares of Arthur J. Gallagher & Co. stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $257.02, for a total value of $899,570.00. Following the transaction, the vice president owned 22,223 shares in the company, valued at $5,711,755.46. This trade represents a 13.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Richard Cary sold 1,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $252.86, for a total transaction of $252,860.00. Following the completion of the transaction, the chief accounting officer owned 46,819 shares in the company, valued at $11,838,652.34. The trade was a 2.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,500 shares of company stock worth $7,562,950 in the last 90 days. Company insiders own 1.40% of the company's stock.

Arthur J. Gallagher & Co. Profile

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The firm helps businesses, public entities and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, wholesale brokerage, reinsurance brokerage, claims administration and risk management consulting. Gallagher places commercial and personal insurance coverage and provides services related to property and casualty risks, health care, benefits, and other specialized insurance needs.

Founded in 1927 by Arthur J.

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