Arthur J. Gallagher & Co. $AJG Stock Holdings Boosted by Retirement Systems of Alabama

Key Points

• Retirement Systems of Alabama increased its AJG stake by 27.2% in the third quarter, adding 54,454 shares to reach 254,812 shares valued at about $59.3 million. Institutional investors collectively own 85.53% of the company.
• Arthur J. Gallagher reported quarterly EPS of $3.00, slightly above estimates, while revenue of $3.92 billion missed forecasts; revenue grew 19.6% year over year. The company announced a quarterly dividend of $0.70 per share.
• Analyst sentiment is moderately positive, with a consensus price target of $292.05; however, two senior executives sold shares during the quarter, and some analysts downgraded the stock to neutral or market perform.

Retirement Systems of Alabama lifted its stake in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 27.2% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 254,812 shares of the financial services provider's stock after purchasing an additional 54,454 shares during the period. Retirement Systems of Alabama owned approximately 0.10% of Arthur J. Gallagher & Co. worth $59,327,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of the stock. Robeco Institutional Asset Management B.V. boosted its holdings in shares of Arthur J. Gallagher & Co. by 208.2% in the third quarter. Robeco Institutional Asset Management B.V. now owns 9,022 shares of the financial services provider's stock worth $2,058,000 after buying an additional 6,095 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Arthur J. Gallagher & Co. in the second quarter worth approximately $3,587,000. Sequoia Financial Advisors LLC increased its position 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 worth $34,389,000 after acquiring an additional 9,966 shares in the last quarter. Gtcr LLC acquired a new stake in shares of Arthur J. Gallagher & Co. during the first quarter valued at approximately $514,112,000. Finally, Nissay Asset Management Corp Japan raised its holdings in shares of Arthur J. Gallagher & Co. by 13.0% during the second quarter. Nissay Asset Management Corp Japan now owns 193,547 shares of the financial services provider's stock valued at $44,433,000 after acquiring an additional 22,227 shares during the period. 85.53% of the stock is owned by hedge funds and other institutional investors.

Arthur J. Gallagher & Co. Price Performance

Shares of AJG opened at $280.44 on Tuesday. The company has a market capitalization of $71.88 billion, a price-to-earnings ratio of 42.88, a P/E/G ratio of 1.66 and a beta of 0.47. Arthur J. Gallagher & Co. has a fifty-two week low of $190.75 and a fifty-two week high of $294.53. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.05 and a quick ratio of 1.05. The business's 50-day moving average is $250.30 and its 200-day moving average is $233.34.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The financial services provider reported $3.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.99 by $0.01. The business had revenue of $3.92 billion during the quarter, compared to analyst estimates of $3.98 billion. Arthur J. Gallagher & Co. had a net margin of 10.39% and a return on equity of 13.90%. The firm's revenue was up 19.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.32 earnings per share. Equities research analysts expect that Arthur J. Gallagher & Co. will post 13.13 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Monday, December 7th will be given a $0.70 dividend. The ex-dividend date is Monday, December 7th. This represents a $2.80 dividend on an annualized basis and a yield of 1.0%. Arthur J. Gallagher & Co.'s dividend payout ratio is presently 42.81%.

Insider Buying and Selling

In other Arthur J. Gallagher & Co. news, VP William Ziebell sold 23,510 shares of Arthur J. Gallagher & Co. stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $286.62, for a total transaction of $6,738,436.20. Following the completion of the sale, the vice president owned 48,942 shares of the company's stock, valued at $14,027,756.04. This trade represents a 32.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Douglas Howell sold 30,996 shares of the business's stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $275.15, for a total transaction of $8,528,549.40. Following the transaction, the chief financial officer owned 92,961 shares in the company, valued at approximately $25,578,219.15. This represents a 25.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 90,596 shares of company stock worth $24,953,010. Insiders own 1.40% of the company's stock.

Wall Street Analyst Weigh In

AJG has been the subject of several research analyst reports. Citigroup downgraded shares of Arthur J. Gallagher & Co. from a "buy" rating to a "neutral" rating and upped their price target for the company from $285.00 to $300.00 in a research report on Monday, November 2nd. Royal Bank Of Canada lifted their price objective on shares of Arthur J. Gallagher & Co. from $290.00 to $315.00 and gave the stock an "outperform" rating in a research report on Friday, October 30th. BMO Capital Markets downgraded shares of Arthur J. Gallagher & Co. from an "outperform" rating to a "market perform" rating and set a $295.00 target price on the stock. in a research note on Tuesday, November 3rd. UBS Group increased their target price on Arthur J. Gallagher & Co. from $299.00 to $320.00 and gave the company a "buy" rating in a report on Monday, November 2nd. Finally, Evercore raised their target price on Arthur J. Gallagher & Co. from $295.00 to $307.00 and gave the stock an "outperform" rating in a research report on Thursday, October 8th. Thirteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $292.05.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co is a global insurance brokerage and risk management services firm. It helps businesses and other organizations assess and manage risk, arrange insurance coverage, and address employee benefits needs.

The company's services include insurance brokerage, risk management consulting, employee benefits consulting, and claims and settlement services through its Gallagher Bassett business. It serves clients in the United States and internationally, including through a network of correspondent brokers.

Founded in 1927 by Arthur J.

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