Cumberland Partners Ltd Trims Stock Position in Arthur J. Gallagher & Co. $AJG

Key Points

• Cumberland Partners cut its stake in Arthur J. Gallagher & Co. by 77% in the fourth quarter, selling 63,571 shares and leaving it with 19,022 shares valued at about $4.9 million.
• AJG shares were down 1.2% to $204.89, and the company’s latest quarterly results beat EPS expectations with $4.47 per share versus $4.43 estimated, though revenue slightly missed forecasts.
• The company declared a quarterly dividend of $0.70 per share payable June 19, while analysts maintain an average “Moderate Buy” rating with a consensus price target of $264.

Cumberland Partners Ltd lessened its stake in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 77.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 19,022 shares of the financial services provider's stock after selling 63,571 shares during the quarter. Cumberland Partners Ltd's holdings in Arthur J. Gallagher & Co. were worth $4,923,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the stock. Nixon Peabody Trust Co. lifted its position in shares of Arthur J. Gallagher & Co. by 1,881.1% during the 4th quarter. Nixon Peabody Trust Co. now owns 34,155 shares of the financial services provider's stock worth $8,839,000 after buying an additional 32,431 shares during the last quarter. Advisory Alpha LLC lifted its position in shares of Arthur J. Gallagher & Co. by 15.6% during the 4th quarter. Advisory Alpha LLC now owns 3,837 shares of the financial services provider's stock worth $993,000 after buying an additional 517 shares during the last quarter. Mizuho Markets Cayman LP purchased a new stake in shares of Arthur J. Gallagher & Co. during the 4th quarter worth approximately $3,407,000. Ignite Planners LLC lifted its position in shares of Arthur J. Gallagher & Co. by 7.5% during the 4th quarter. Ignite Planners LLC now owns 918 shares of the financial services provider's stock worth $229,000 after buying an additional 64 shares during the last quarter. Finally, Meiji Yasuda Asset Management Co Ltd. raised its position in Arthur J. Gallagher & Co. by 12.9% in the 4th quarter. Meiji Yasuda Asset Management Co Ltd. now owns 4,626 shares of the financial services provider's stock valued at $1,197,000 after purchasing an additional 527 shares during the last quarter. Hedge funds and other institutional investors own 85.53% of the company's stock.

Arthur J. Gallagher & Co. Trading Down 1.2%

Shares of Arthur J. Gallagher & Co. stock opened at $204.89 on Friday. Arthur J. Gallagher & Co. has a 52-week low of $190.75 and a 52-week high of $351.23. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.51. The company's 50-day simple moving average is $211.64 and its 200-day simple moving average is $232.49. The firm has a market cap of $52.64 billion, a price-to-earnings ratio of 33.15, a price-to-earnings-growth ratio of 1.05 and a beta of 0.54.

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

Arthur J. Gallagher & Co. Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, June 5th. Arthur J. Gallagher & Co.'s payout ratio is 45.31%.

Wall Street Analyst Weigh In

AJG has been the subject of several research reports. Jefferies Financial Group reduced their price target on shares of Arthur J. Gallagher & Co. from $283.00 to $280.00 and set a "hold" rating for the company in a research report on Monday, February 2nd. Wells Fargo & Company reduced their price target on shares of Arthur J. Gallagher & Co. from $273.00 to $266.00 and set an "overweight" rating for the company in a research report on Thursday, April 9th. Truist Financial reduced their price target on shares of Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating for the company in a research report on Friday, May 1st. Cantor Fitzgerald reiterated a "neutral" rating on shares of Arthur J. Gallagher & Co. in a research report on Friday, January 30th. Finally, Barclays upped their price target on shares of Arthur J. Gallagher & Co. from $262.00 to $275.00 and gave the company an "overweight" rating in a research report on Wednesday, April 8th. Eleven investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $264.00.

Insider Transactions at Arthur J. Gallagher & Co.

In other news, VP Christopher E. Mead sold 4,000 shares of the business's 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 transaction, the vice president directly owned 19,306 shares in the company, valued at $4,384,778.72. The trade was a 17.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Scott R. Hudson sold 3,800 shares of the business'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 owned 85,920 shares in the company, valued at approximately $19,552,814.40. This trade represents a 4.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.40% of the company's stock.

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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