Arthur J. Gallagher & Co. $AJG Stock: Farmers & Merchants Investments Inc. Raises Stake

Key Points

• Farmers & Merchants Investments increased its AJG stake by 2,589.7% in the third quarter, bringing its holdings to 3,927 shares valued at approximately $899,000. Institutional investors collectively own 85.53% of the company.
• Analysts maintain a generally positive outlook, with 16 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $280.74.
• Arthur J. 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, although insiders sold 28,500 shares worth about $7.56 million during the quarter.

Farmers & Merchants Investments Inc. boosted its position in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 2,589.7% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,927 shares of the financial services provider's stock after buying an additional 3,781 shares during the quarter. Farmers & Merchants Investments Inc.'s holdings in Arthur J. Gallagher & Co. were worth $899,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also bought and sold shares of the company. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Arthur J. Gallagher & Co. during the second quarter valued at $3,587,000. Sequoia Financial Advisors LLC raised its holdings in shares of Arthur J. Gallagher & Co. by 7.1% in the second quarter. Sequoia Financial Advisors LLC now owns 149,799 shares of the financial services provider's stock valued at $34,389,000 after acquiring an additional 9,966 shares in the last quarter. Gtcr LLC purchased a new stake in Arthur J. Gallagher & Co. in the first quarter worth about $514,112,000. Nissay Asset Management Corp Japan grew its holdings in Arthur J. Gallagher & Co. by 13.0% during the 2nd quarter. Nissay Asset Management Corp Japan now owns 193,547 shares of the financial services provider's stock worth $44,433,000 after acquiring an additional 22,227 shares in the last quarter. Finally, National Pension Service increased its position in Arthur J. Gallagher & Co. by 3.6% during the 2nd quarter. National Pension Service now owns 516,323 shares of the financial services provider's stock valued at $118,532,000 after purchasing an additional 18,047 shares during the period. Institutional investors own 85.53% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on AJG shares. Argus upped 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 report on Monday, August 17th. Royal Bank Of Canada cut their price objective on shares of Arthur J. Gallagher & Co. from $310.00 to $290.00 and set an "outperform" rating on the stock in a report on Thursday, September 24th. Mizuho reduced their price objective on shares of Arthur J. Gallagher & Co. from $292.00 to $271.00 and set an "outperform" rating for the company in a research note on Wednesday, October 7th. Piper Sandler restated an "overweight" rating on shares of Arthur J. Gallagher & Co. in a report on Thursday, September 24th. Finally, Wolfe Research cut Arthur J. Gallagher & Co. from an "outperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. Sixteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $280.74.

Insider Transactions at Arthur J. Gallagher & Co.

In related news, General Counsel Walter Bay sold 12,000 shares of the company's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $270.08, for a total value of $3,240,960.00. Following the transaction, the general counsel directly owned 71,292 shares of the company's stock, valued at $19,254,543.36. This represents a 14.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Richard Cary sold 1,000 shares of the firm's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $252.86, for a total value of $252,860.00. Following the completion of the transaction, the chief accounting officer owned 46,819 shares of the company's stock, valued at $11,838,652.34. This trade represents a 2.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 28,500 shares of company stock valued at $7,562,950 in the last quarter. Insiders own 1.40% of the company's stock.

Arthur J. Gallagher & Co. Price Performance

Shares of AJG opened at $268.28 on Friday. The company has a market cap of $68.76 billion, a price-to-earnings ratio of 44.49, a price-to-earnings-growth ratio of 1.53 and a beta of 0.55. Arthur J. Gallagher & Co. has a twelve month low of $190.75 and a twelve month high of $284.17. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.50. The company has a 50 day moving average of $247.30 and a two-hundred day moving average of $233.76.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.81 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%. The business had revenue of $3.95 billion for the quarter, compared to the consensus estimate of $4.01 billion. The business's quarterly revenue was up 24.3% on a year-over-year basis. During the same period in the prior year, the firm posted $2.33 earnings per share. As a group, analysts predict that Arthur J. Gallagher & Co. will post 13.16 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, September 18th. Stockholders of record on Tuesday, September 8th were issued a dividend of $0.70 per share. The ex-dividend date of this dividend was Tuesday, September 8th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.0%. Arthur J. Gallagher & Co.'s payout ratio is 46.43%.

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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