Bowie Capital Management LLC Acquires 209,521 Shares of Arthur J. Gallagher & Co. $AJG

Key Points

• Bowie Capital Management increased its stake in Arthur J. Gallagher & Co. by 91.3% in the first quarter, buying 209,521 additional shares and bringing its total holding to 438,928 shares worth about $95.1 million.
• Arthur J. Gallagher reported solid quarterly results, with earnings per share of $4.47 beating estimates, while revenue rose 29% year over year to $4.71 billion.
• Analysts remain broadly positive on AJG, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $280.35, even as the shares were down 2.2% in recent trading.

Bowie Capital Management LLC boosted its holdings in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 91.3% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 438,928 shares of the financial services provider's stock after acquiring an additional 209,521 shares during the quarter. Arthur J. Gallagher & Co. accounts for about 3.5% of Bowie Capital Management LLC's investment portfolio, making the stock its 14th biggest position. Bowie Capital Management LLC owned about 0.17% of Arthur J. Gallagher & Co. worth $95,063,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in Arthur J. Gallagher & Co. in the 4th quarter valued at $1,925,062,000. T. Rowe Price Investment Management Inc. grew its holdings in shares of Arthur J. Gallagher & Co. by 123.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 5,887,538 shares of the financial services provider's stock worth $1,523,636,000 after purchasing an additional 3,253,498 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Arthur J. Gallagher & Co. by 9,244.9% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,053,636 shares of the financial services provider's stock worth $272,670,000 after purchasing an additional 1,042,361 shares in the last quarter. Viking Global Investors LP acquired a new stake in shares of Arthur J. Gallagher & Co. during the 4th quarter worth about $269,394,000. Finally, Dodge & Cox bought a new stake in Arthur J. Gallagher & Co. during the fourth quarter worth about $227,887,000. Institutional investors and hedge funds own 85.53% of the company's stock.

Arthur J. Gallagher & Co. Stock Down 2.2%

NYSE:AJG opened at $242.69 on Thursday. The stock's fifty day moving average price is $224.47 and its two-hundred day moving average price is $225.15. The company has a market cap of $62.35 billion, a price-to-earnings ratio of 39.27, a P/E/G ratio of 1.29 and a beta of 0.50. Arthur J. Gallagher & Co. has a 52-week low of $190.75 and a 52-week high of $315.48. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.06 and a current ratio of 1.06.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its earnings results on Thursday, April 30th. The financial services provider reported $4.47 earnings per share for the quarter, topping analysts' consensus estimates of $4.43 by $0.04. The company had revenue of $4.71 billion during the quarter, compared to the consensus estimate of $4.73 billion. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The firm's quarterly revenue was up 29.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.67 earnings per share. On average, analysts anticipate that Arthur J. Gallagher & Co. will post 13.22 EPS for the current year.

Arthur J. Gallagher & Co. Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were given a dividend of $0.70 per share. The ex-dividend date was Friday, June 5th. This represents a $2.80 dividend on an annualized basis and a yield of 1.2%. Arthur J. Gallagher & Co.'s dividend payout ratio is presently 45.31%.

Insider Activity

In other news, CAO Richard C. Cary sold 3,000 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $206.00, for a total value of $618,000.00. Following the transaction, the chief accounting officer owned 47,819 shares of the company's stock, valued at approximately $9,850,714. This trade represents a 5.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 1.40% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Barclays lifted their target price on shares of Arthur J. Gallagher & Co. from $275.00 to $292.00 and gave the company an "overweight" rating in a research note on Tuesday, July 7th. Piper Sandler raised Arthur J. Gallagher & Co. from a "neutral" rating to an "overweight" rating and raised their price target for the company from $225.00 to $276.00 in a report on Wednesday, July 15th. Morgan Stanley lifted their price objective on Arthur J. Gallagher & Co. from $240.00 to $255.00 and gave the company an "overweight" rating in a research report on Monday, July 6th. Wolfe Research lowered Arthur J. Gallagher & Co. from an "outperform" rating to a "peer perform" rating in a research note on Thursday, July 9th. Finally, Cantor Fitzgerald raised their target price on Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Thirteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $280.35.

Arthur J. Gallagher & Co. Company 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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