Bank of America Corp DE Buys 222,092 Shares of Aon plc $AON

Key Points

• Bank of America increased its Aon stake by 16.3% in the first quarter, buying 222,092 shares to bring its holdings to 1.58 million shares valued at approximately $510.9 million. Institutional investors collectively own 86.14% of Aon.
• Aon reported second-quarter adjusted EPS of $3.81, narrowly beating estimates, while revenue rose 2.2% year over year to $4.25 billion but fell slightly short of expectations. Management reaffirmed its full-year guidance and declared a quarterly dividend of $0.82 per share.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $409.06, although Aon faces competitive pressure and recent insider selling. The stock opened at $360.71, down 1.6%.

Bank of America Corp DE boosted its position in Aon plc (NYSE:AON - Free Report) by 16.3% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,582,680 shares of the financial services provider's stock after purchasing an additional 222,092 shares during the quarter. Bank of America Corp DE owned approximately 0.74% of AON worth $510,857,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Wealth Watch Advisors INC acquired a new stake in AON in the third quarter valued at approximately $25,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of AON during the fourth quarter worth $27,000. Kemnay Advisory Services Inc. purchased a new stake in shares of AON during the 4th quarter valued at $29,000. Eagle Bay Advisors LLC acquired a new stake in shares of AON in the 4th quarter worth $30,000. Finally, Strive Asset Management LLC purchased a new position in AON during the 3rd quarter worth $35,000. 86.14% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the company. Mizuho upped their target price on AON from $389.00 to $426.00 and gave the company an "outperform" rating in a research report on Thursday, July 9th. Barclays boosted their price target on AON from $372.00 to $382.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 7th. Wall Street Zen lowered shares of AON from a "hold" rating to a "sell" rating in a research report on Saturday. Citigroup boosted their target price on shares of AON from $420.00 to $435.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, JPMorgan Chase & Co. upped their price target on shares of AON from $396.00 to $412.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. Twelve research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $409.06.

AON News Roundup

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon reported second-quarter adjusted earnings of $3.81 per share, narrowly above the $3.80 consensus and up from $3.49 a year earlier. Organic revenue growth reached 5%, while operating margins expanded and management reaffirmed its full-year guidance. Aon Q2 results and guidance
• Positive Sentiment: Growth in reinsurance and property-and-casualty businesses, combined with a record pace of share repurchases, strengthened the company’s capital-return story. Aon also declared a quarterly dividend of $0.82 per share. Aon buyback and Q2 growth
• Positive Sentiment: Citigroup raised its price target to $435 from $420 with a Buy rating, and Wells Fargo increased its target to $419 from $406 with an Overweight rating, signaling continued confidence in Aon’s longer-term earnings outlook.
• Neutral Sentiment: Revenue rose 2.2% year over year to $4.25 billion but missed the $4.28 billion estimate. Higher expenses and lower interest income limited the benefit from organic growth and acquisitions, leaving investors focused on whether revenue growth can accelerate.
• Neutral Sentiment: Aon said severe weather across the U.S. Midwest—including wind, hail and tornadoes—could rank among the top 10 costliest severe-weather events. The company also expects losses from the July Japan earthquake to be below those from the 2016 Kumamoto earthquake; these developments highlight insurance-market activity but have limited direct earnings impact for Aon.
• Negative Sentiment: General Counsel Darren Zeidel sold 1,900 shares for approximately $718,000, following additional sales earlier in July. Although he retains a sizable position, the repeated insider selling may weigh modestly on sentiment. Aon insider sale
• Negative Sentiment: WTW reported faster growth in its broking arm than Aon, Marsh and Gallagher, underscoring competitive pressure in Aon’s core brokerage market. WTW broking growth comparison

AON Trading Down 1.6%

AON stock opened at $360.71 on Friday. The company has a quick ratio of 1.95, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. Aon plc has a 52 week low of $304.59 and a 52 week high of $382.34. The company has a market capitalization of $76.51 billion, a price-to-earnings ratio of 19.88, a price-to-earnings-growth ratio of 1.86 and a beta of 0.71. The stock has a 50-day moving average price of $341.22 and a 200 day moving average price of $332.07.

AON (NYSE:AON - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, topping the consensus estimate of $3.80 by $0.01. AON had a net margin of 22.27% and a return on equity of 42.13%. The company had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.28 billion. During the same quarter in the prior year, the company earned $3.49 EPS. AON's quarterly revenue was up 2.2% on a year-over-year basis. Sell-side analysts anticipate that Aon plc will post 19.09 EPS for the current year.

AON Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Monday, August 3rd will be paid a $0.82 dividend. The ex-dividend date is Monday, August 3rd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.9%. AON's dividend payout ratio is presently 18.08%.

Insider Activity

In related news, General Counsel Darren Zeidel sold 1,950 shares of the business's stock in a transaction on Friday, July 17th. The shares were sold at an average price of $372.05, for a total transaction of $725,497.50. Following the completion of the transaction, the general counsel directly owned 13,404 shares in the company, valued at $4,986,958.20. The trade was a 12.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 4,450 shares of company stock worth $1,659,242 over the last three months. Company insiders own 1.00% of the company's stock.

AON Profile

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.

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