Ironvine Capital Partners LLC Increases Position in Aon plc $AON

Key Points

• Ironvine Capital Partners increased its Aon stake by 11.3% in the second quarter, bringing its holdings to 119,841 shares valued at approximately $39.75 million. Institutional investors collectively own 86.14% of Aon.
• Analysts maintain a generally positive outlook, with 12 Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $399.88.
• Aon’s planned $17 billion acquisition of USI could expand its middle-market insurance capabilities and generate projected annual EBITDA synergies of $395 million, but the debt-funded transaction has raised leverage and execution concerns.

Ironvine Capital Partners LLC grew its position in Aon plc (NYSE:AON - Free Report) by 11.3% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 119,841 shares of the financial services provider's stock after buying an additional 12,153 shares during the period. AON makes up 3.5% of Ironvine Capital Partners LLC's portfolio, making the stock its 9th largest position. Ironvine Capital Partners LLC owned approximately 0.06% of AON worth $39,750,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in AON. NewEdge Advisors LLC raised its position in shares of AON by 28.4% during the second quarter. NewEdge Advisors LLC now owns 14,704 shares of the financial services provider's stock worth $5,246,000 after purchasing an additional 3,253 shares during the period. Treasurer of the State of North Carolina increased its stake in AON by 9.1% during the 2nd quarter. Treasurer of the State of North Carolina now owns 98,084 shares of the financial services provider's stock worth $34,992,000 after purchasing an additional 8,216 shares in the last quarter. Alliancebernstein L.P. raised its holdings in AON by 35.2% during the 2nd quarter. Alliancebernstein L.P. now owns 292,210 shares of the financial services provider's stock worth $104,249,000 after buying an additional 76,061 shares during the period. Diversify Advisory Services LLC lifted its stake in AON by 27.1% in the second quarter. Diversify Advisory Services LLC now owns 2,734 shares of the financial services provider's stock valued at $995,000 after buying an additional 583 shares in the last quarter. Finally, Quantinno Capital Management LP boosted its holdings in shares of AON by 46.1% in the second quarter. Quantinno Capital Management LP now owns 40,044 shares of the financial services provider's stock valued at $14,286,000 after buying an additional 12,631 shares during the period. Institutional investors and hedge funds own 86.14% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on AON. BMO Capital Markets dropped their price objective on shares of AON from $375.00 to $360.00 and set a "market perform" rating on the stock in a report on Tuesday. TD Cowen reiterated a "buy" rating on shares of AON in a report on Tuesday. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of AON in a report on Tuesday. Keefe, Bruyette & Woods increased their price objective on AON from $412.00 to $417.00 and gave the stock an "outperform" rating in a report on Tuesday. Finally, Weiss Ratings raised AON from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, August 19th. Twelve equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, AON has a consensus rating of "Moderate Buy" and an average target price of $399.88.

Key AON News

Here are the key news stories impacting AON this week:

• Positive Sentiment: Analysts maintain bullish ratings: Keefe, Bruyette & Woods raised its price target to $417 from $412 and kept an “outperform” rating. Cantor Fitzgerald maintained “overweight” with a $433 target, while Mizuho retained “outperform” despite reducing its target to $398. All targets imply substantial upside from the referenced share price.
• Positive Sentiment: USI expands Aon’s middle-market and specialty capabilities: The acquisition would strengthen Aon’s reach among medium-sized businesses, add risk management, health benefits and retirement-plan services, and increase exposure to the fast-growing excess and surplus insurance market. Aon expects $395 million in annual run-rate adjusted EBITDA benefits from revenue and cost synergies and adjusted-EPS accretion beginning in 2028. Aon to acquire USI to establish the premier U.S. middle-market platform
• Neutral Sentiment: Transaction remains subject to closing conditions: The deal is expected to close in the fourth quarter, pending regulatory approvals. USI CEO Mike Sicard is expected to become Aon’s president and global CEO of Middle Market after completion. Aon CEO says insurance broker seeks to build premier middle-market platform
• Negative Sentiment: Large debt-funded purchase raises financial and execution concerns: Aon plans to finance the $17 billion transaction with new debt, increasing leverage and placing pressure on management to realize projected synergies. Investors have characterized the acquisition as an expensive bet on middle-market growth, contributing to a sharp decline in the shares after the announcement. Aon's $17 billion USI deal: A costly bet on middle-market growth

Insider Activity at AON

In related news, General Counsel Darren Zeidel sold 1,900 shares of the firm's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total value of $717,744.00. Following the completion of the transaction, the general counsel directly owned 11,504 shares of the company's stock, valued at approximately $4,345,751.04. This trade represents a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last three months, insiders sold 4,450 shares of company stock valued at $1,659,242. Corporate insiders own 1.00% of the company's stock.

AON Trading Up 1.6%

Shares of NYSE:AON opened at $326.51 on Wednesday. The company's 50-day moving average price is $353.36 and its two-hundred day moving average price is $334.07. Aon plc has a one year low of $304.59 and a one year high of $382.34. 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 stock has a market capitalization of $69.26 billion, a PE ratio of 18.00, a price-to-earnings-growth ratio of 1.66 and a beta of 0.66.

AON (NYSE:AON - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, beating the consensus estimate 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 analysts' expectations of $4.28 billion. During the same quarter last year, the company earned $3.49 EPS. AON's revenue for the quarter was up 2.2% compared to the same quarter last year. On average, equities analysts forecast that Aon plc will post 19.05 EPS for the current fiscal year.

AON Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, August 3rd were given a dividend of $0.82 per share. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $3.28 annualized dividend and a dividend yield of 1.0%. AON's payout ratio is 18.08%.

AON Profile

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.

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