Comerica Bank Sells 23,884 Shares of Arthur J. Gallagher & Co. $AJG

Key Points

• Comerica Bank trimmed its stake in Arthur J. Gallagher by 10.7% in Q4, selling 23,884 shares and leaving 198,341 shares (about 0.08% ownership) valued at roughly $51.33 million.
• AJG reported Q earnings of $2.38 EPS (beating by $0.03) with revenue of $3.57 billion (slightly below expectations) and raised its quarterly dividend to $0.70 ($2.80 annual, 1.3% yield); revenue was up 33.9% year‑over‑year.
• The stock has a market cap of $55.38 billion and a P/E of 35.03, carries an average analyst rating of "Moderate Buy" with a $273.94 consensus target, while company insiders recently sold about 7,800 shares.

Comerica Bank decreased its position in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 10.7% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 198,341 shares of the financial services provider's stock after selling 23,884 shares during the quarter. Comerica Bank owned approximately 0.08% of Arthur J. Gallagher & Co. worth $51,329,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. Physician Wealth Advisors Inc. boosted its stake in Arthur J. Gallagher & Co. by 870.0% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 97 shares of the financial services provider's stock worth $30,000 after purchasing an additional 87 shares during the period. Rakuten Securities Inc. boosted its stake in Arthur J. Gallagher & Co. by 650.0% in the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock worth $34,000 after purchasing an additional 91 shares during the period. Financial Life Planners bought a new position in Arthur J. Gallagher & Co. in the 3rd quarter worth about $39,000. Westside Investment Management Inc. boosted its stake in 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 worth $42,000 after purchasing an additional 68 shares during the period. Finally, Thurston Springer Miller Herd & Titak Inc. boosted its stake in Arthur J. Gallagher & Co. by 668.2% in the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 169 shares of the financial services provider's stock worth $44,000 after purchasing an additional 147 shares during the period. Institutional investors own 85.53% of the company's stock.

Arthur J. Gallagher & Co. Stock Performance

Shares of NYSE AJG opened at $215.42 on Monday. The stock has a market cap of $55.38 billion, a price-to-earnings ratio of 35.03, a P/E/G ratio of 1.07 and a beta of 0.68. 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 1-year low of $195.00 and a 1-year high of $351.23. The stock's 50-day moving average is $217.42 and its 200 day moving average is $242.05.

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 for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. The company had revenue of $3.57 billion for the quarter, compared to analysts' expectations of $3.61 billion. Arthur J. Gallagher & Co. had a return on equity of 12.13% and a net margin of 11.84%.Arthur J. Gallagher & Co.'s revenue for the quarter was up 33.9% compared to the same quarter last year. During the same period last year, the firm posted $1.12 EPS. On average, sell-side analysts anticipate that Arthur J. Gallagher & Co. will post 13.19 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Increases Dividend

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

Wall Street Analysts Forecast Growth

Several research analysts have commented on AJG shares. Mizuho cut their target price on Arthur J. Gallagher & Co. from $260.00 to $259.00 and set an "outperform" rating for the company in a research note on Monday, April 13th. Jefferies Financial Group lowered their price target on Arthur J. Gallagher & Co. from $283.00 to $280.00 and set a "hold" rating on the stock in a report on Monday, February 2nd. UBS Group lowered their price target on Arthur J. Gallagher & Co. from $285.00 to $283.00 and set a "neutral" rating on the stock in a report on Monday, February 2nd. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $292.00 price target on shares of Arthur J. Gallagher & Co. in a report on Wednesday, January 7th. Finally, Keefe, Bruyette & Woods lowered their price target on Arthur J. Gallagher & Co. from $249.00 to $246.00 and set a "market perform" rating on the stock in a report on Tuesday, April 7th. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $273.94.

Insider Transactions at Arthur J. Gallagher & Co.

In related news, VP Scott R. Hudson sold 3,800 shares of the firm's 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. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Christopher E. Mead sold 4,000 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $227.12, for a total value of $908,480.00. Following the transaction, the vice president directly owned 19,306 shares in the company, valued at approximately $4,384,778.72. This represents a 17.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.40% of the company's stock.

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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