Neo Ivy Capital Management Buys 8,667 Shares of Arthur J. Gallagher & Co. $AJG

Key Points

• Neo Ivy Capital Management boosted its stake in Arthur J. Gallagher & Co. by 385%, buying 8,667 shares to hold 10,918 shares worth about $3,382,000, representing ~0.8% of its portfolio and the fund's 24th-largest position.
• Arthur J. Gallagher reported quarterly EPS of $2.38 (vs. $2.35 est.) with revenue up 33.9% year-over-year, and the company raised its quarterly dividend to $0.70 (annualized $2.80), ex-dividend March 6.
• Wall Street's consensus is a Hold with a $281.76 target, while insiders sold 24,850 shares (~$6.36M) over the past three months and institutional investors own about 85.53% of the stock.

Neo Ivy Capital Management lifted its stake in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 385.0% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 10,918 shares of the financial services provider's stock after buying an additional 8,667 shares during the period. Arthur J. Gallagher & Co. comprises approximately 0.8% of Neo Ivy Capital Management's investment portfolio, making the stock its 24th biggest position. Neo Ivy Capital Management's holdings in Arthur J. Gallagher & Co. were worth $3,382,000 as of its most recent filing with the SEC.

Several other hedge funds also recently modified their holdings of AJG. Physician Wealth Advisors Inc. increased its holdings in Arthur J. Gallagher & Co. by 870.0% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 97 shares of the financial services provider's stock worth $30,000 after purchasing an additional 87 shares in the last quarter. Rakuten Securities Inc. boosted its stake in shares of Arthur J. Gallagher & Co. by 650.0% during the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 91 shares in the last quarter. Central Pacific Bank Trust Division grew its holdings in shares of Arthur J. Gallagher & Co. by 40.6% during the third quarter. Central Pacific Bank Trust Division now owns 135 shares of the financial services provider's stock worth $42,000 after purchasing an additional 39 shares during the last quarter. Westside Investment Management Inc. increased its stake in shares of Arthur J. Gallagher & Co. by 100.0% in the third quarter. Westside Investment Management Inc. now owns 136 shares of the financial services provider's stock valued at $42,000 after buying an additional 68 shares during the period. Finally, Steigerwald Gordon & Koch Inc. bought a new position in Arthur J. Gallagher & Co. in the 3rd quarter valued at approximately $62,000. Institutional investors and hedge funds own 85.53% of the company's stock.

Arthur J. Gallagher & Co. Stock Down 0.5%

Arthur J. Gallagher & Co. stock opened at $228.40 on Friday. The firm has a market cap of $58.72 billion, a price-to-earnings ratio of 37.14, a PEG ratio of 1.12 and a beta of 0.67. Arthur J. Gallagher & Co. has a 52-week low of $195.00 and a 52-week high of $351.23. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.06 and a current ratio of 1.06. The firm has a 50 day moving average price of $239.88 and a two-hundred day moving average price of $263.69.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its quarterly earnings data on Thursday, January 29th. The financial services provider reported $2.38 EPS for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. The company had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.61 billion. Arthur J. Gallagher & Co. had a net margin of 11.84% and a return on equity of 12.13%. The company's quarterly revenue was up 33.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.12 EPS. Equities analysts predict that Arthur J. Gallagher & Co. will post 11.54 EPS for the current year.

Arthur J. Gallagher & Co. Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Friday, March 6th. This is a positive change from Arthur J. Gallagher & Co.'s previous quarterly dividend of $0.65. Arthur J. Gallagher & Co.'s dividend payout ratio is currently 42.28%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on AJG shares. The Goldman Sachs Group reiterated a "buy" rating and set a $292.00 target price on shares of Arthur J. Gallagher & Co. in a research report on Wednesday, January 7th. Cantor Fitzgerald reaffirmed a "neutral" rating on shares of Arthur J. Gallagher & Co. in a research note on Friday, January 30th. Wall Street Zen upgraded shares of Arthur J. Gallagher & Co. from a "sell" rating to a "hold" rating in a report on Saturday, February 21st. BMO Capital Markets cut shares of Arthur J. Gallagher & Co. from an "outperform" rating to a "market perform" rating and reduced their price objective for the stock from $289.00 to $275.00 in a research note on Tuesday, January 13th. Finally, Truist Financial set a $271.00 target price on Arthur J. Gallagher & Co. in a research report on Friday, January 30th. Seven analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Arthur J. Gallagher & Co. has a consensus rating of "Hold" and a consensus target price of $281.76.

Insiders Place Their Bets

In other news, CFO Douglas K. Howell sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $258.05, for a total transaction of $1,290,250.00. Following the completion of the sale, the chief financial officer owned 95,777 shares of the company's stock, valued at $24,715,254.85. This trade represents a 4.96% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, General Counsel Walter D. Bay sold 15,850 shares of Arthur J. Gallagher & Co. stock in a transaction on Friday, December 19th. The shares were sold at an average price of $255.00, for a total transaction of $4,041,750.00. Following the completion of the sale, the general counsel owned 79,549 shares of the company's stock, valued at $20,284,995. This represents a 16.61% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 24,850 shares of company stock worth $6,364,440. 1.60% of the stock is owned by corporate insiders.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company's core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.

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