BNP Paribas Financial Markets Decreases Stock Position in Arthur J. Gallagher & Co. $AJG

Key Points

• BNP Paribas Financial Markets trimmed its stake in Arthur J. Gallagher & Co. by 3.8% in Q3, selling 13,903 shares and leaving it with 348,430 shares worth about $107.9 million.
• Other institutions made large moves: JPMorgan Chase boosted holdings 19.6% to 20,338,533 shares (~$6.30 billion) and Norges Bank established a new ~ $1.54 billion position, leaving institutional ownership around 85.5%.
• Arthur J. Gallagher raised its quarterly dividend to $0.70 (annualized $2.80, ~1.4% yield) and reported Q4 EPS of $2.38 (beat), with revenue up 33.9% year-over-year but slightly below consensus.

BNP Paribas Financial Markets cut its stake in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 3.8% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 348,430 shares of the financial services provider's stock after selling 13,903 shares during the quarter. BNP Paribas Financial Markets owned 0.14% of Arthur J. Gallagher & Co. worth $107,923,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of AJG. Norges Bank bought a new position in shares of Arthur J. Gallagher & Co. in the second quarter worth approximately $1,536,230,000. JPMorgan Chase & Co. raised its holdings in Arthur J. Gallagher & Co. by 19.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 20,338,533 shares of the financial services provider's stock valued at $6,299,674,000 after buying an additional 3,330,205 shares during the last quarter. Sands Capital Management LLC boosted its position in Arthur J. Gallagher & Co. by 453.3% during the 2nd quarter. Sands Capital Management LLC now owns 1,121,249 shares of the financial services provider's stock valued at $358,934,000 after buying an additional 918,618 shares during the period. Balyasny Asset Management L.P. grew its holdings in Arthur J. Gallagher & Co. by 41,475.5% in the 2nd quarter. Balyasny Asset Management L.P. now owns 770,394 shares of the financial services provider's stock worth $246,619,000 after acquiring an additional 768,541 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Arthur J. Gallagher & Co. by 30.5% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,107,390 shares of the financial services provider's stock valued at $962,483,000 after acquiring an additional 725,555 shares during the period. 85.53% of the stock is owned by hedge funds and other institutional investors.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG opened at $204.13 on Friday. The company has a 50-day simple moving average of $235.89 and a two-hundred day simple moving average of $261.13. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.06 and a quick ratio of 1.06. The firm has a market capitalization of $52.48 billion, a PE ratio of 33.19, a price-to-earnings-growth ratio of 1.02 and a beta of 0.67. Arthur J. Gallagher & Co. has a one year low of $195.00 and a one year high of $351.23.

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

Arthur J. Gallagher & Co. Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, March 6th will be issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.4%. This is a positive change from Arthur J. Gallagher & Co.'s previous quarterly dividend of $0.65. The ex-dividend date is Friday, March 6th. Arthur J. Gallagher & Co.'s dividend payout ratio is currently 45.53%.

Insider Transactions at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, CFO Douglas K. Howell sold 5,000 shares of the firm's stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $258.05, for a total transaction of $1,290,250.00. Following the completion of the transaction, the chief financial officer owned 95,777 shares of the company's stock, valued at approximately $24,715,254.85. This trade represents a 4.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Christopher E. Mead sold 4,000 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $227.12, for a total transaction of $908,480.00. Following the completion of the sale, the vice president directly owned 19,306 shares in the company, valued at $4,384,778.72. This represents a 17.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 32,650 shares of company stock worth $8,137,686. Corporate insiders own 1.60% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Needham & Company LLC set a $272.00 target price on shares of Arthur J. Gallagher & Co. in a report on Thursday, December 18th. Barclays upgraded Arthur J. Gallagher & Co. from an "underweight" rating to an "overweight" rating and boosted their price target for the company from $247.00 to $262.00 in a report on Wednesday. Cantor Fitzgerald reiterated a "neutral" rating on shares of Arthur J. Gallagher & Co. in a report on Friday, January 30th. Piper Sandler reduced their target price on Arthur J. Gallagher & Co. from $249.00 to $226.00 and set a "neutral" rating on the stock in a research note on Monday, February 23rd. Finally, Evercore decreased their target price on Arthur J. Gallagher & Co. from $353.00 to $334.00 and set an "outperform" rating for the company in a report on Wednesday, December 17th. Eight analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, Arthur J. Gallagher & Co. currently has a consensus rating of "Hold" and an average price target of $282.65.

About Arthur J. Gallagher & Co.

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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