NEOS Investment Management LLC Buys 3,922 Shares of Aon plc $AON

Key Points

• NEOS Investment Management increased its Aon stake by 12.8% in the second quarter, adding 3,922 shares to hold 34,465 shares valued at approximately $11.4 million. Institutional investors collectively own 86.14% of AON.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and average price target of $399.12, despite several firms recently lowering their targets.
• Aon’s latest quarter showed 2.2% year-over-year revenue growth and EPS slightly above estimates, while investors continue to weigh growth opportunities against leverage and integration risks from the planned $17 billion USI acquisition.

NEOS Investment Management LLC grew its position in Aon plc (NYSE:AON - Free Report) by 12.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 34,465 shares of the financial services provider's stock after purchasing an additional 3,922 shares during the quarter. NEOS Investment Management LLC's holdings in AON were worth $11,432,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in AON. Dodge & Cox raised its stake in AON by 126.6% in the 4th quarter. Dodge & Cox now owns 7,852,456 shares of the financial services provider's stock worth $2,770,975,000 after purchasing an additional 4,387,773 shares in the last quarter. Norges Bank acquired a new stake in shares of AON in the fourth quarter valued at approximately $1,155,981,000. Viking Global Investors LP acquired a new stake in AON during the third quarter worth approximately $504,424,000. Balyasny Asset Management L.P. raised its holdings in AON by 40,219.8% in the 3rd quarter. Balyasny Asset Management L.P. now owns 846,715 shares of the financial services provider's stock valued at $301,922,000 after acquiring an additional 844,615 shares in the last quarter. Finally, Southpoint Capital Advisors LP bought a new stake in shares of AON during the 4th quarter valued at $229,372,000. 86.14% of the stock is currently owned by institutional investors.

Key Headlines Impacting AON

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon director Lester Knight purchased 20,000 shares for approximately $6.55 million, increasing his direct holdings by nearly 14%. The sizable insider purchase may signal confidence that the recent weakness has created attractive value. Aon director stock purchase filing
• Positive Sentiment: Aon executives highlighted strong demand for insurance-linked securities and expect continued growth through year-end and into 2027. A more flexible reinsurance market, supported by approximately $800 billion of capital, could increase transaction activity and benefit Aon’s brokerage and advisory operations. Strong ILS demand and continued growth expected
• Positive Sentiment: The company urged insurers to use record reinsurance capacity and third-party capital to support growth, reinforcing the potential for expanding demand for Aon’s capital-markets and risk-transfer services. Aon urges insurers to use reinsurance and third-party capital
• Positive Sentiment: Aon launched a defined-benefit pension “run-on” solution aimed at smaller schemes, broadening its retirement-services offering and potentially creating additional recurring consulting revenue. Aon launches run-on solution
• Neutral Sentiment: Chief Executive Greg Case will speak at the KBW Insurance Conference on September 10, giving investors a potential catalyst for updates on the USI transaction, organic growth and capital allocation. Aon to speak at the KBW Insurance Conference
• Negative Sentiment: Analysis of Aon’s planned $17 billion USI acquisition questioned whether roughly $395 million in expected synergies will adequately offset the risks of another debt-funded megadeal. Leverage and integration concerns may be weighing on valuation. Analysis of Aon’s USI acquisition
• Negative Sentiment: Mizuho lowered its price target while maintaining an outperform rating, adding near-term pressure amid broader uncertainty over valuation and the acquisition’s financing. This caution contrasts with the more bullish view from Keefe, Bruyette & Woods. Mizuho forecast for AON

Wall Street Analysts Forecast Growth

AON has been the subject of several analyst reports. BMO Capital Markets dropped their target price on shares of AON from $375.00 to $360.00 and set a "market perform" rating for the company in a research report on Tuesday. JPMorgan Chase & Co. boosted their price objective on shares of AON from $396.00 to $412.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. UBS Group reaffirmed a "neutral" rating on shares of AON in a report on Monday, August 31st. Roth Capital set a $380.00 price target on AON in a report on Tuesday. Finally, Wells Fargo & Company decreased their target price on AON from $419.00 to $383.00 and set an "overweight" rating on the stock in a research report on Tuesday. Twelve research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $399.12.

AON Stock Performance

NYSE AON opened at $322.57 on Friday. The company has a market capitalization of $68.43 billion, a price-to-earnings ratio of 17.78, a PEG ratio of 1.71 and a beta of 0.66. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. Aon plc has a twelve month low of $304.59 and a twelve month high of $382.34. The stock has a fifty day simple moving average of $353.58 and a 200 day simple moving average of $334.15.

AON (NYSE:AON - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.80 by $0.01. The firm had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.28 billion. AON had a net margin of 22.27% and a return on equity of 42.13%. The company's revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.49 EPS. Sell-side analysts expect that Aon plc will post 18.99 EPS for the current year.

AON Dividend Announcement

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

Insider Buying and Selling

In related news, General Counsel Darren Zeidel sold 1,950 shares of the company's stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $372.05, for a total transaction of $725,497.50. Following the transaction, the general counsel directly owned 13,404 shares of the company's stock, valued at approximately $4,986,958.20. This represents a 12.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Lester B. Knight acquired 20,000 shares of the stock in a transaction on Wednesday, September 2nd. The shares were acquired at an average price of $327.48 per share, for a total transaction of $6,549,600.00. Following the acquisition, the director owned 163,000 shares of the company's stock, valued at approximately $53,379,240. The trade was a 13.99% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold a total of 4,450 shares of company stock worth $1,659,242 over the last 90 days. Company insiders own 1.00% of the company's stock.

About AON

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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