Dimensional Fund Advisors LP Grows Holdings in Arthur J. Gallagher & Co. $AJG

Key Points

• Dimensional Fund Advisors LP increased its stake in Arthur J. Gallagher & Co. by 5.9% in the first quarter, bringing its holdings to 853,192 shares worth about $184.8 million.
• Arthur J. Gallagher & Co. reported Q1 earnings of $4.47 per share, topping estimates, while revenue rose 29% year over year to $4.71 billion. The company also paid a quarterly dividend of $0.70 per share, implying a 1.1% yield.
• Analyst sentiment remains broadly positive despite a few mixed moves: the stock has 13 Buy ratings and 5 Hold ratings, with an average price target of $280.35, though Wolfe Research recently downgraded it to peer perform.

Dimensional Fund Advisors LP boosted its position in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 5.9% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 853,192 shares of the financial services provider's stock after acquiring an additional 47,588 shares during the period. Dimensional Fund Advisors LP owned 0.33% of Arthur J. Gallagher & Co. worth $184,781,000 at the end of the most recent quarter.

Several other large investors have also added to or reduced their stakes in the company. Kemnay Advisory Services Inc. purchased a new stake in shares of Arthur J. Gallagher & Co. in the fourth quarter worth $26,000. MV Capital Management Inc. purchased a new position in shares of Arthur J. Gallagher & Co. during the 4th quarter valued at $34,000. Rakuten Securities Inc. boosted its holdings 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 buying an additional 91 shares during the period. Avalon Trust Co purchased a new stake in Arthur J. Gallagher & Co. in the 1st quarter worth $40,000. Finally, Prosperity Bancshares Inc purchased a new stake in Arthur J. Gallagher & Co. in the 4th quarter worth $42,000. Hedge funds and other institutional investors own 85.53% of the company's stock.

Insiders Place Their Bets

In other Arthur J. Gallagher & Co. news, CAO Richard C. Cary sold 3,000 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total value of $618,000.00. Following the sale, the chief accounting officer owned 47,819 shares of the company's stock, valued at $9,850,714. The trade was a 5.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 1.40% of the stock is owned by corporate insiders.

Arthur J. Gallagher & Co. Stock Up 2.2%

Shares of AJG stock opened at $247.57 on Friday. The company's fifty day simple moving average is $226.33 and its two-hundred day simple moving average is $225.22. Arthur J. Gallagher & Co. has a 52 week low of $190.75 and a 52 week high of $315.48. The stock has a market cap of $63.60 billion, a P/E ratio of 40.06, a PEG ratio of 1.28 and a beta of 0.50. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.51.

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

Arthur J. Gallagher & Co. Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, June 5th. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is currently 45.31%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Wolfe Research downgraded Arthur J. Gallagher & Co. from an "outperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. Truist Financial cut their target price on 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. UBS Group lifted their target price on Arthur J. Gallagher & Co. from $250.00 to $291.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. Wells Fargo & Company upped their price target on Arthur J. Gallagher & Co. from $271.00 to $299.00 and gave the stock an "overweight" rating in a research note on Thursday, July 9th. Finally, Jefferies Financial Group raised shares of Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and increased their price objective for the company from $235.00 to $265.00 in a report on Thursday, June 11th. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $280.35.

Arthur J. Gallagher & Co. 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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