Arthur J. Gallagher & Co. $AJG Position Reduced by Guinness Asset Management LTD

Key Points

• Guinness Asset Management LTD decreased its stake in Arthur J. Gallagher & Co. by 2.6%, holding 819,048 shares after selling 21,978 shares this quarter. This investment represents 5.4% of their portfolio, valued at approximately $282.6 million.
• Arthur J. Gallagher & Co. reported a quarterly EPS of $2.33, missing analyst expectations of $2.36, despite a 16% year-over-year revenue increase.
• The company announced a quarterly dividend of $0.65 per share, resulting in an annualized dividend yield of 0.9%, indicating a payout ratio of 36.93%.

Guinness Asset Management LTD lowered its stake in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 2.6% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 819,048 shares of the financial services provider's stock after selling 21,978 shares during the quarter. Arthur J. Gallagher & Co. comprises approximately 5.4% of Guinness Asset Management LTD's holdings, making the stock its largest holding. Guinness Asset Management LTD owned 0.32% of Arthur J. Gallagher & Co. worth $282,603,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also modified their holdings of the company. Strs Ohio purchased a new stake in shares of Arthur J. Gallagher & Co. during the 1st quarter valued at about $39,012,000. Jacobi Capital Management LLC purchased a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at $243,000. WBI Investments LLC purchased a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at $1,490,000. Acadian Asset Management LLC raised its position in Arthur J. Gallagher & Co. by 608.5% in the 1st quarter. Acadian Asset Management LLC now owns 4,513 shares of the financial services provider's stock worth $1,556,000 after purchasing an additional 3,876 shares during the period. Finally, Geneos Wealth Management Inc. raised its position in Arthur J. Gallagher & Co. by 131.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 42,173 shares of the financial services provider's stock worth $14,560,000 after purchasing an additional 23,941 shares during the period. 85.53% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Arthur J. Gallagher & Co.

In other news, CFO Douglas K. Howell sold 3,000 shares of the business's stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $299.78, for a total transaction of $899,340.00. Following the sale, the chief financial officer directly owned 114,777 shares of the company's stock, valued at $34,407,849.06. The trade was a 2.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Scott R. Hudson sold 12,855 shares of the business's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $297.60, for a total transaction of $3,825,648.00. Following the sale, the vice president directly owned 85,920 shares in the company, valued at $25,569,792. This trade represents a 13.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.30% of the stock is currently owned by insiders.

Arthur J. Gallagher & Co. Stock Up 0.7%

AJG traded up $2.10 on Tuesday, hitting $291.50. The company had a trading volume of 1,175,638 shares, compared to its average volume of 1,528,101. The stock has a fifty day moving average price of $300.27 and a 200-day moving average price of $319.27. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.36 and a current ratio of 1.36. Arthur J. Gallagher & Co. has a 12-month low of $274.25 and a 12-month high of $351.23. The stock has a market capitalization of $74.74 billion, a price-to-earnings ratio of 41.41 and a beta of 0.72.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The financial services provider reported $2.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.36 by ($0.03). Arthur J. Gallagher & Co. had a return on equity of 13.17% and a net margin of 14.54%.The firm had revenue of $3.18 billion during the quarter, compared to analysts' expectations of $3.20 billion. During the same period in the prior year, the firm posted $2.29 earnings per share. Arthur J. Gallagher & Co.'s revenue for the quarter was up 16.0% compared to the same quarter last year. Analysts predict that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Friday, September 5th. Arthur J. Gallagher & Co.'s payout ratio is currently 36.93%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on AJG. Keefe, Bruyette & Woods increased their price target on Arthur J. Gallagher & Co. from $326.00 to $330.00 and gave the stock a "market perform" rating in a report on Wednesday, July 9th. Barclays reduced their price target on shares of Arthur J. Gallagher & Co. from $346.00 to $327.00 and set an "equal weight" rating on the stock in a research note on Monday, July 7th. Wells Fargo & Company raised their price target on shares of Arthur J. Gallagher & Co. from $371.00 to $373.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Citigroup started coverage on shares of Arthur J. Gallagher & Co. in a research report on Wednesday, August 13th. They set a "neutral" rating and a $317.00 target price on the stock. Finally, Wall Street Zen raised shares of Arthur J. Gallagher & Co. from a "sell" rating to a "hold" rating in a research report on Friday, September 5th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $333.13.

Arthur J. Gallagher & Co. 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.