First Citizens Bank & Trust Co. Acquires New Shares in Aon plc $AON

Key Points

• First Citizens Bank & Trust acquired 28,233 Aon shares worth approximately $7.8 million in the third quarter. Institutional investors collectively own 86.14% of Aon’s outstanding stock.
• Aon reported quarterly earnings of $3.81 per share, slightly exceeding estimates, while revenue rose 2.2% year over year to $4.25 billion. The company also declared a quarterly dividend of $0.82 per share, representing a 1.2% annualized yield.
• Analyst price targets have been broadly reduced, though the consensus rating remains “Moderate Buy” with an average target of $367.59. Aon’s shares opened at $274.82, near the lower end of their 52-week range.

First Citizens Bank & Trust Co. acquired a new stake in Aon plc (NYSE:AON - Free Report) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 28,233 shares of the financial services provider's stock, valued at approximately $7,814,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. City National Bank of Florida MSD raised its stake in AON by 3.8% in the 4th quarter. City National Bank of Florida MSD now owns 867 shares of the financial services provider's stock valued at $306,000 after acquiring an additional 32 shares during the period. MassMutual Private Wealth & Trust FSB boosted its position in AON by 5.3% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 650 shares of the financial services provider's stock worth $216,000 after purchasing an additional 33 shares during the period. Aspen Grove Capital LLC increased its holdings in shares of AON by 4.8% in the first quarter. Aspen Grove Capital LLC now owns 737 shares of the financial services provider's stock valued at $238,000 after purchasing an additional 34 shares during the last quarter. KCM Investment Advisors LLC increased its holdings in shares of AON by 6.2% in the first quarter. KCM Investment Advisors LLC now owns 651 shares of the financial services provider's stock valued at $210,000 after purchasing an additional 38 shares during the last quarter. Finally, RDA Financial Network raised its position in shares of AON by 2.9% in the second quarter. RDA Financial Network now owns 1,451 shares of the financial services provider's stock valued at $481,000 after purchasing an additional 41 shares during the period. 86.14% of the stock is currently owned by institutional investors.

AON News Roundup

Here are the key news stories impacting AON this week:

• Positive Sentiment: Expanded Ukraine insurance facility: Aon and the European Bank for Reconstruction and Development increased the Ukraine Recovery and Reconstruction Guarantee Facility from €110 million to €150 million. The program has supported more than €500 million of reinsurance coverage across nearly 10,000 policies, while adding insurers UNIVERSALNA and USG. The expansion strengthens Aon’s role in Ukraine’s reconstruction and could support longer-term insurance and reinsurance activity. Aon and EBRD expand war risk insurance facility for Ukraine
• Positive Sentiment: Potentially easing medical-cost pressure: Aon projects Asia-Pacific medical-cost inflation will slow to 9.7%, which could improve affordability for employers and support demand for employee-benefits consulting and risk-management solutions. Aon projects Asia Pacific medical cost inflation slowing
• Neutral Sentiment: Leadership change: Aon appointed Leonora Siccardi as global chief execution officer for Risk Capital and Human Capital, a newly created role focused on coordinating execution across major businesses. The move may improve operating alignment, but no immediate financial impact was disclosed. Aon names Siccardi to new global execution role
• Neutral Sentiment: Captive-market opportunity: Aon highlighted the growing use of insurance captives as platforms for attracting third-party capital, while rising medical costs are driving expansion in employee-benefits captives. The developments point to strategic growth opportunities but provide limited near-term earnings visibility. Medical cost pressure drives Aon's EB captive expansion
• Negative Sentiment: Multiple analyst target cuts: Morgan Stanley lowered its target to $350, Wells Fargo reduced its target to $323, Evercore cut its target from $423 to $375, and Keefe, Bruyette & Woods lowered its target from $417 to $342, although KBW retained an “outperform” rating. The revisions reinforce concerns about Aon’s valuation and growth outlook, despite the targets remaining above the current share price. Evercore cuts target for Aon stock

Insider Transactions at AON

In related news, Director Lester B. Knight purchased 20,000 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The stock was acquired at an average price of $327.48 per share, with a total value of $6,549,600.00. Following the completion of the purchase, the director directly owned 163,000 shares in the company, valued at $53,379,240. This trade represents a 13.99% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Darren Zeidel sold 1,900 shares of the company's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $377.76, for a total transaction of $717,744.00. Following the sale, the general counsel directly owned 11,504 shares of the company's stock, valued at $4,345,751.04. This represents a 14.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.00% of the company's stock.

AON Stock Performance

Shares of NYSE AON opened at $274.82 on Wednesday. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.54 and a quick ratio of 1.54. The firm has a market cap of $58.30 billion, a price-to-earnings ratio of 15.11, a P/E/G ratio of 1.41 and a beta of 0.70. The stock's fifty day moving average price is $315.32 and its two-hundred day moving average price is $326.86. Aon plc has a one year low of $266.33 and a one year high of $382.34.

AON (NYSE:AON - Get Free Report) last posted its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, topping analysts' consensus estimates of $3.80 by $0.01. AON had a return on equity of 42.13% and a net margin of 22.27%. The company had revenue of $4.25 billion during the quarter, compared to the consensus estimate of $4.28 billion. During the same quarter last year, the firm earned $3.49 earnings per share. The company's revenue was up 2.2% on a year-over-year basis. On average, equities analysts forecast that Aon plc will post 18.74 EPS for the current year.

AON Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Monday, November 2nd will be paid a $0.82 dividend. The ex-dividend date is Monday, November 2nd. This represents a $3.28 annualized dividend and a yield of 1.2%. AON's payout ratio is 18.08%.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on AON. Cantor Fitzgerald reduced their target price on shares of AON from $433.00 to $400.00 and set an "overweight" rating for the company in a report on Wednesday, October 7th. Weiss Ratings lowered shares of AON from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, September 17th. Wall Street Zen cut shares of AON from a "hold" rating to a "sell" rating in a report on Sunday, September 6th. Morgan Stanley cut their price objective on shares of AON from $410.00 to $350.00 and set an "overweight" rating for the company in a research report on Tuesday, October 6th. Finally, JPMorgan Chase & Co. reduced their price objective on AON from $412.00 to $362.00 and set an "overweight" rating for the company in a report on Thursday, October 1st. Twelve equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $367.59.

About AON

Aon plc is a global professional services firm that helps organizations manage risk, make better decisions and improve performance. Its services are organized around risk capital and human capital, combining advisory expertise, data, analytics and insurance-related solutions.

The company provides commercial risk brokerage and consulting, reinsurance brokerage, retirement and investment advisory services, health benefits consulting, talent and compensation consulting, and related technology and data products.

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