OP Asset Management Ltd Makes New Investment in Arthur J. Gallagher & Co. $AJG

Key Points

• OP Asset Management Ltd opened a new position in Arthur J. Gallagher & Co. in the first quarter, buying 26,155 shares worth about $5.7 million.
• Insider activity included CAO Richard C. Cary selling 3,000 shares for about $618,000, trimming his ownership by 5.9%.
• Analysts remain broadly positive on AJG, with 13 Buy ratings and 6 Hold ratings; the consensus view is Moderate Buy with a price target of $264.12.

OP Asset Management Ltd bought a new stake in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 26,155 shares of the financial services provider's stock, valued at approximately $5,665,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Kemnay Advisory Services Inc. acquired a new stake in Arthur J. Gallagher & Co. during the 4th quarter valued at approximately $26,000. Rakuten Securities Inc. raised its position in shares of Arthur J. Gallagher & Co. by 650.0% in the 2nd 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. Financial Life Planners purchased a new position in shares of Arthur J. Gallagher & Co. during the 3rd quarter valued at approximately $39,000. MV Capital Management Inc. acquired a new stake in shares of Arthur J. Gallagher & Co. during the fourth quarter worth approximately $34,000. Finally, Prosperity Bancshares Inc bought a new stake in shares of Arthur J. Gallagher & Co. in the fourth quarter worth $42,000. 85.53% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Arthur J. Gallagher & Co.

In other news, CAO Richard C. Cary sold 3,000 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total transaction of $618,000.00. Following the sale, the chief accounting officer owned 47,819 shares of the company's stock, valued at approximately $9,850,714. The trade was a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 1.40% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Morgan Stanley reduced their price objective on shares of Arthur J. Gallagher & Co. from $265.00 to $240.00 and set an "overweight" rating on the stock in a research note on Thursday, May 21st. UBS Group reissued a "buy" rating on shares of Arthur J. Gallagher & Co. in a research report on Thursday, June 18th. Jefferies Financial Group raised shares of Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and increased their price target for the stock from $235.00 to $265.00 in a research report on Thursday, June 11th. Wells Fargo & Company decreased their price target on Arthur J. Gallagher & Co. from $273.00 to $266.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Finally, Keefe, Bruyette & Woods boosted their price objective on Arthur J. Gallagher & Co. from $235.00 to $242.00 and gave the company a "market perform" rating in a report on Thursday, June 18th. Thirteen equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $264.12.

Arthur J. Gallagher & Co. Trading Up 3.9%

NYSE:AJG opened at $226.34 on Friday. The firm has a market capitalization of $58.15 billion, a P/E ratio of 36.62, a P/E/G ratio of 1.11 and a beta of 0.52. The business has a 50 day simple moving average of $210.49 and a 200 day simple moving average of $225.98. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.06 and a quick ratio of 1.06. Arthur J. Gallagher & Co. has a 12-month low of $190.75 and a 12-month high of $323.25.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its earnings results on Thursday, April 30th. The financial services provider reported $4.47 earnings per share for the quarter, topping the consensus estimate of $4.43 by $0.04. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The firm had revenue of $4.71 billion for the quarter, compared to analyst estimates of $4.73 billion. During the same period last year, the company earned $3.67 earnings per share. The firm's revenue for the quarter was up 29.0% on a year-over-year basis. Equities research analysts predict that Arthur J. Gallagher & Co. will post 13.23 EPS for the current year.

Arthur J. Gallagher & Co. Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were paid a $0.70 dividend. The ex-dividend date was Friday, June 5th. This represents a $2.80 annualized dividend and a dividend yield of 1.2%. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is presently 45.31%.

Arthur J. Gallagher & Co. Profile

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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