Arthur J. Gallagher & Co. $AJG Stock: Lawson Kroeker Investment Management Inc. NE Increases Stake

Key Points

• Lawson Kroeker Investment Management increased its AJG stake by 166.6% in the third quarter to 176,899 shares worth approximately $40.4 million, making Gallagher its largest portfolio holding. Institutional investors collectively own 85.53% of the stock.
• Wall Street sentiment remains positive, with 16 analysts rating AJG a Buy and five rating it a Hold. The stock has a “Moderate Buy” consensus and an average price target of $280.74.
• Arthur J. Gallagher reported quarterly EPS of $2.84, slightly above expectations, 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% annual yield.

Lawson Kroeker Investment Management Inc. NE boosted its stake in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 166.6% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 176,899 shares of the financial services provider's stock after buying an additional 110,555 shares during the quarter. Arthur J. Gallagher & Co. makes up 12.4% of Lawson Kroeker Investment Management Inc. NE's investment portfolio, making the stock its largest holding. Lawson Kroeker Investment Management Inc. NE owned 0.07% of Arthur J. Gallagher & Co. worth $40,352,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also bought and sold shares of AJG. Wedbush Securities Inc. bought a new position in shares of Arthur J. Gallagher & Co. during the third quarter valued at about $466,000. Sterling Capital Management LLC grew its position in Arthur J. Gallagher & Co. by 158.3% in the 3rd quarter. Sterling Capital Management LLC now owns 2,500 shares of the financial services provider's stock worth $583,000 after purchasing an additional 1,532 shares in the last quarter. Carderock Capital Management Inc. grew its position in Arthur J. Gallagher & Co. by 28.3% in the 3rd quarter. Carderock Capital Management Inc. now owns 20,947 shares of the financial services provider's stock worth $4,778,000 after purchasing an additional 4,617 shares in the last quarter. Yousif Capital Management LLC increased its stake in Arthur J. Gallagher & Co. by 22.5% in the 3rd quarter. Yousif Capital Management LLC now owns 30,296 shares of the financial services provider's stock valued at $7,457,000 after buying an additional 5,569 shares during the last quarter. Finally, Brookstone Capital Management increased its stake in Arthur J. Gallagher & Co. by 55.7% in the 3rd quarter. Brookstone Capital Management now owns 6,644 shares of the financial services provider's stock valued at $1,516,000 after buying an additional 2,378 shares during the last quarter. 85.53% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have commented on AJG. UBS Group lifted their target price on shares of Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the stock a "buy" rating in a research report on Monday, August 3rd. Cantor Fitzgerald decreased their price target on Arthur J. Gallagher & Co. from $300.00 to $280.00 and set a "neutral" rating for the company in a research report on Wednesday, October 7th. Seaport Research Partners raised Arthur J. Gallagher & Co. to a "buy" rating in a research report on Wednesday, October 7th. The Goldman Sachs Group lifted their price target on Arthur J. Gallagher & Co. from $272.00 to $277.00 and gave the stock a "buy" rating in a report on Thursday, October 1st. Finally, Mizuho cut their price objective on 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. Sixteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $280.74.

Insider Buying and Selling at Arthur J. Gallagher & Co.

In related news, VP Scott R. Hudson sold 12,000 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $264.13, for a total transaction of $3,169,560.00. Following the sale, the vice president directly owned 90,262 shares in the company, valued at approximately $23,840,902.06. This represents a 11.73% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, General Counsel Walter D. Bay sold 12,000 shares of the company's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $270.08, for a total transaction of $3,240,960.00. Following the sale, the general counsel owned 71,292 shares in the company, valued at $19,254,543.36. The trade was a 14.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 28,500 shares of company stock worth $7,562,950 over the last ninety days. Company insiders own 1.40% of the company's stock.

Arthur J. Gallagher & Co. Price Performance

Shares of NYSE AJG opened at $268.28 on Friday. The firm has a market cap of $68.76 billion, a price-to-earnings ratio of 44.49, a price-to-earnings-growth ratio of 1.55 and a beta of 0.55. The stock has a fifty day simple moving average of $247.30 and a two-hundred day simple moving average of $233.76. 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 1-year low of $190.75 and a 1-year high of $284.17.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $3.95 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same quarter in the prior year, the company earned $2.33 EPS. The firm's quarterly revenue was up 24.3% compared to the same quarter last year. Analysts anticipate that Arthur J. Gallagher & Co. will post 13.16 earnings per share for the current year.

Arthur J. Gallagher & Co. Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Shareholders 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 annualized dividend and a yield of 1.0%. Arthur J. Gallagher & Co.'s dividend payout ratio is 46.43%.

Arthur J. Gallagher & Co. Company 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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