Fenimore Asset Management Inc Sells 10,562 Shares of Arthur J. Gallagher & Co. $AJG

Key Points

• Fenimore Asset Management Inc reduced its holdings in Arthur J. Gallagher & Co. by 2.9%, selling 10,562 shares, leaving them with 356,342 shares valued at approximately $114 million.
• Arthur J. Gallagher & Co. reported a net margin of 14.54% and $3.18 billion in revenue for the last quarter, while missing EPS estimates by $0.03.
• The firm recently declared a quarterly dividend of $0.65 per share, yielding approximately 0.8%, with a payout ratio of 36.93%.

Fenimore Asset Management Inc decreased its holdings in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 2.9% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 356,342 shares of the financial services provider's stock after selling 10,562 shares during the period. Arthur J. Gallagher & Co. comprises approximately 2.3% of Fenimore Asset Management Inc's holdings, making the stock its 18th largest holding. Fenimore Asset Management Inc owned approximately 0.14% of Arthur J. Gallagher & Co. worth $114,072,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in the stock. JPMorgan Chase & Co. boosted its position in Arthur J. Gallagher & Co. by 38.3% in the 1st quarter. JPMorgan Chase & Co. now owns 17,372,745 shares of the financial services provider's stock valued at $5,997,767,000 after buying an additional 4,815,007 shares during the period. Vanguard Group Inc. raised its stake in shares of Arthur J. Gallagher & Co. by 2.5% during the first quarter. Vanguard Group Inc. now owns 30,411,264 shares of the financial services provider's stock valued at $10,499,185,000 after acquiring an additional 739,130 shares in the last quarter. Nuveen LLC purchased a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at approximately $240,665,000. 1832 Asset Management L.P. grew its stake in Arthur J. Gallagher & Co. by 3,142.2% in the first quarter. 1832 Asset Management L.P. now owns 640,911 shares of the financial services provider's stock worth $221,268,000 after purchasing an additional 621,143 shares in the last quarter. Finally, DSM Capital Partners LLC purchased a new position in Arthur J. Gallagher & Co. during the 1st quarter worth $136,565,000. 85.53% of the stock is owned by hedge funds and other institutional investors.

Arthur J. Gallagher & Co. Trading Up 0.7%

NYSE AJG opened at $310.95 on Monday. Arthur J. Gallagher & Co. has a 52 week low of $275.56 and a 52 week high of $351.23. The company has a 50 day moving average price of $297.60 and a 200 day moving average price of $316.55. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.52. The firm has a market cap of $79.73 billion, a PE ratio of 44.17 and a beta of 0.73.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its earnings results on Thursday, July 31st. The financial services provider reported $2.33 earnings per share for the quarter, missing the consensus estimate of $2.36 by ($0.03). Arthur J. Gallagher & Co. had a net margin of 14.54% and a return on equity of 13.17%. The firm had revenue of $3.18 billion during the quarter, compared to analyst estimates of $3.20 billion. During the same quarter last year, the business earned $2.29 earnings per share. Arthur J. Gallagher & Co.'s revenue was up 16.0% on a year-over-year basis. As a group, sell-side analysts forecast that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, September 19th. Stockholders of record on Friday, September 5th were paid a dividend of $0.65 per share. The ex-dividend date was Friday, September 5th. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Arthur J. Gallagher & Co.'s payout ratio is presently 36.93%.

Insider Activity

In other news, CFO Douglas K. Howell sold 8,000 shares of Arthur J. Gallagher & Co. stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $299.54, for a total transaction of $2,396,320.00. Following the completion of the sale, the chief financial officer directly owned 100,777 shares in the company, valued at approximately $30,186,742.58. The trade was a 7.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Scott R. Hudson sold 12,855 shares of the company's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $297.60, for a total value of $3,825,648.00. Following the completion of the transaction, the vice president directly owned 85,920 shares in the company, valued at approximately $25,569,792. The trade was a 13.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 29,855 shares of company stock worth $8,916,928. Corporate insiders own 1.60% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on AJG shares. Citigroup assumed coverage on Arthur J. Gallagher & Co. in a research report on Wednesday, August 13th. They set a "neutral" rating and a $317.00 price target on the stock. Barclays lowered their price objective on shares of Arthur J. Gallagher & Co. from $346.00 to $327.00 and set an "equal weight" rating for the company in a research note on Monday, July 7th. UBS Group boosted their price target on shares of Arthur J. Gallagher & Co. from $322.00 to $329.00 and gave the company a "neutral" rating in a report on Friday, September 19th. Cantor Fitzgerald raised shares of Arthur J. Gallagher & Co. to a "strong-buy" rating in a research report on Wednesday, August 13th. Finally, Piper Sandler reduced their price objective on shares of Arthur J. Gallagher & Co. from $352.00 to $340.00 and set an "overweight" rating for the company in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $328.80.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co engages in the provision of insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. It operates through the following segments: Brokerage, Risk Management, and Corporate. The Brokerage segment consists of retail and wholesale insurance brokerage operations.

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