Baillie Gifford & Co. Cuts Stock Holdings in Arthur J. Gallagher & Co. $AJG

Key Points

• Baillie Gifford & Co. cut its stake in Arthur J. Gallagher by 4.8% in Q4, selling 43,625 shares and finishing the period with 865,260 shares worth about $223.9 million (0.34% ownership).
• AJG reported quarterly EPS of $2.38 (beating estimates) and revenue of $3.57 billion, up 33.9% year‑over‑year; the stock carries a market cap of $54.8 billion and a P/E of 34.68.
• The firm raised its quarterly dividend to $0.70 ($2.80 annualized, a 1.3% yield) amid insider sales (two VPs sold a combined 7,800 shares) and roughly 85.5% of shares are held by institutions.

Baillie Gifford & Co. decreased its holdings in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 4.8% during the fourth quarter, according to its most recent filing with the SEC. The firm owned 865,260 shares of the financial services provider's stock after selling 43,625 shares during the period. Baillie Gifford & Co. owned 0.34% of Arthur J. Gallagher & Co. worth $223,921,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Physician Wealth Advisors Inc. lifted its stake in Arthur J. Gallagher & Co. by 870.0% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 97 shares of the financial services provider's stock valued at $30,000 after acquiring an additional 87 shares during the period. Rakuten Securities Inc. lifted its stake in Arthur J. Gallagher & Co. by 650.0% during the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 91 shares during the period. Financial Life Planners acquired a new position in shares of Arthur J. Gallagher & Co. in the 3rd quarter valued at $39,000. Central Pacific Bank Trust Division lifted its stake in shares of Arthur J. Gallagher & Co. by 40.6% in the 3rd quarter. Central Pacific Bank Trust Division now owns 135 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 39 shares during the period. Finally, Westside Investment Management Inc. lifted its stake in shares of Arthur J. Gallagher & Co. by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 136 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 68 shares during the period. Hedge funds and other institutional investors own 85.53% of the company's stock.

Arthur J. Gallagher & Co. Trading Down 0.1%

Shares of AJG opened at $213.25 on Monday. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.52. Arthur J. Gallagher & Co. has a 12-month low of $195.00 and a 12-month high of $351.23. The firm has a 50-day moving average price of $218.63 and a 200 day moving average price of $248.10. The firm has a market capitalization of $54.83 billion, a P/E ratio of 34.68, a P/E/G ratio of 1.06 and a beta of 0.68.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The financial services provider reported $2.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. Arthur J. Gallagher & Co. had a net margin of 11.84% and a return on equity of 12.13%. The firm had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.61 billion. During the same quarter in the prior year, the firm posted $1.12 earnings per share. Arthur J. Gallagher & Co.'s quarterly revenue was up 33.9% on a year-over-year basis. Sell-side analysts forecast that Arthur J. Gallagher & Co. will post 11.54 EPS for the current year.

Arthur J. Gallagher & Co. Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 1.3%. This is a boost from Arthur J. Gallagher & Co.'s previous quarterly dividend of $0.65. The ex-dividend date of this dividend was Friday, March 6th. Arthur J. Gallagher & Co.'s payout ratio is 45.53%.

Analyst Ratings Changes

Several research firms recently issued reports on AJG. Mizuho upgraded shares of Arthur J. Gallagher & Co. from a "neutral" rating to an "outperform" rating and set a $260.00 target price for the company in a research note on Friday, February 27th. Wells Fargo & Company decreased their target price on shares of Arthur J. Gallagher & Co. from $273.00 to $266.00 and set an "overweight" rating for the company in a research note on Thursday. The Goldman Sachs Group reiterated a "buy" rating and issued a $292.00 target price on shares of Arthur J. Gallagher & Co. in a research note on Wednesday, January 7th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Arthur J. Gallagher & Co. in a research note on Monday, December 29th. Finally, Piper Sandler reduced their price objective on shares of Arthur J. Gallagher & Co. from $249.00 to $226.00 and set a "neutral" rating for the company in a research report on Monday, February 23rd. Ten equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $274.00.

Insider Activity

In other Arthur J. Gallagher & Co. news, VP Christopher E. Mead sold 4,000 shares of the stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $227.12, for a total transaction of $908,480.00. Following the completion of the transaction, the vice president owned 19,306 shares of the company's stock, valued at $4,384,778.72. This trade represents a 17.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Scott R. Hudson sold 3,800 shares of the stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $227.57, for a total transaction of $864,766.00. Following the transaction, the vice president directly owned 85,920 shares of the company's stock, valued at approximately $19,552,814.40. This trade represents a 4.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.40% of the company's stock.

Arthur J. Gallagher & Co. Profile

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company's core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.

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