Marvin & Palmer Associates Inc. Makes New Investment in Arthur J. Gallagher & Co. (NYSE:AJG)

Key Points

• Marvin & Palmer Associates Inc. has acquired a new investment in Arthur J. Gallagher & Co., purchasing 9,066 shares valued at approximately $3.13 million, representing 4.7% of their portfolio.
• Arthur J. Gallagher & Co. recently declared a quarterly dividend of $0.65, yielding 0.83%, with an annualized total dividend of $2.60.
• Analysts have mixed ratings on AJG stock, with one sell rating, eight hold ratings, and five buy ratings, along with a consensus target price of $322.31.

Marvin & Palmer Associates Inc. bought a new position in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 9,066 shares of the financial services provider's stock, valued at approximately $3,130,000. Arthur J. Gallagher & Co. makes up about 4.7% of Marvin & Palmer Associates Inc.'s portfolio, making the stock its 10th biggest position.

Several other institutional investors have also recently bought and sold shares of the business. Checchi Capital Advisers LLC grew its holdings in shares of Arthur J. Gallagher & Co. by 1.1% during the first quarter. Checchi Capital Advisers LLC now owns 2,899 shares of the financial services provider's stock worth $1,001,000 after purchasing an additional 31 shares during the last quarter. Allen Capital Group LLC boosted its holdings in Arthur J. Gallagher & Co. by 2.1% in the first quarter. Allen Capital Group LLC now owns 1,603 shares of the financial services provider's stock valued at $553,000 after acquiring an additional 33 shares during the last quarter. Allred Capital Management LLC boosted its holdings in Arthur J. Gallagher & Co. by 1.0% in the fourth quarter. Allred Capital Management LLC now owns 3,380 shares of the financial services provider's stock valued at $960,000 after acquiring an additional 34 shares during the last quarter. City Holding Co. boosted its holdings in Arthur J. Gallagher & Co. by 3.1% in the first quarter. City Holding Co. now owns 1,140 shares of the financial services provider's stock valued at $394,000 after acquiring an additional 34 shares during the last quarter. Finally, CVA Family Office LLC boosted its holdings in Arthur J. Gallagher & Co. by 34.3% in the first quarter. CVA Family Office LLC now owns 133 shares of the financial services provider's stock valued at $46,000 after acquiring an additional 34 shares during the last quarter. Institutional investors and hedge funds own 85.53% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on AJG shares. Jefferies Financial Group reduced their target price on Arthur J. Gallagher & Co. from $266.00 to $265.00 and set a "hold" rating on the stock in a report on Friday, April 11th. Barclays reduced their target price on Arthur J. Gallagher & Co. from $346.00 to $327.00 and set an "equal weight" rating on the stock in a report on Monday, July 7th. Erste Group Bank reiterated a "hold" rating on shares of Arthur J. Gallagher & Co. in a report on Wednesday, July 23rd. Wells Fargo & Company reduced their target price on Arthur J. Gallagher & Co. from $372.00 to $371.00 and set an "overweight" rating on the stock in a report on Monday, June 9th. Finally, 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. One research analyst has rated the stock with a sell rating, eight have given a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $322.31.

Arthur J. Gallagher & Co. Price Performance

Shares of NYSE:AJG opened at $315.15 on Monday. The company has a quick ratio of 1.44, a current ratio of 1.44 and a debt-to-equity ratio of 0.56. Arthur J. Gallagher & Co. has a twelve month low of $267.00 and a twelve month high of $351.23. The stock's 50 day moving average is $322.82 and its 200-day moving average is $323.00. The firm has a market capitalization of $80.71 billion, a price-to-earnings ratio of 45.61 and a beta of 0.71.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The financial services provider reported $3.67 EPS for the quarter, beating analysts' consensus estimates of $3.57 by $0.10. The business had revenue of $3.69 billion during the quarter, compared to analyst estimates of $3.85 billion. Arthur J. Gallagher & Co. had a return on equity of 14.83% and a net margin of 14.39%. Arthur J. Gallagher & Co.'s quarterly revenue was up 14.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.45 EPS. Sell-side analysts forecast 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 declared a quarterly dividend, which was paid on Friday, June 20th. Investors of record on Friday, June 6th were given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.83%. The ex-dividend date of this dividend was Friday, June 6th. Arthur J. Gallagher & Co.'s payout ratio is currently 37.63%.

Insider Activity at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, VP Scott R. Hudson sold 10,500 shares of the company's stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $337.17, for a total value of $3,540,285.00. Following the completion of the transaction, the vice president owned 91,175 shares in the company, valued at $30,741,474.75. This represents a 10.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director David S. Johnson sold 1,000 shares of the company's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $342.04, for a total value of $342,040.00. Following the completion of the transaction, the director owned 45,323 shares of the company's stock, valued at $15,502,278.92. This trade represents a 2.16% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 25,000 shares of company stock valued at $8,528,080. 1.30% of the stock is owned by insiders.

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.

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