Principal Financial Group Inc. Sells 8,150 Shares of Aon plc $AON

Key Points

• Principal Financial Group cut its Aon stake by 3.2%, selling 8,150 shares in the quarter and now holds 248,481 shares (about 0.12% of AON) valued at roughly $87.68 million.
• Aon beat recent-quarter expectations with $6.48 EPS vs. $6.37 expected and $5.03 billion in revenue (up 6.4% YoY), and raised its quarterly dividend to $0.82 ($3.28 annualized, ~1.1% yield).
• Analysts hold a consensus "Moderate Buy" with a $397.88 price target, institutional ownership is ~86%, and insiders showed mixed activity (a director bought 4,000 shares while the general counsel sold 5,040 shares).

Principal Financial Group Inc. cut its stake in shares of Aon plc (NYSE:AON - Free Report) by 3.2% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 248,481 shares of the financial services provider's stock after selling 8,150 shares during the quarter. Principal Financial Group Inc. owned approximately 0.12% of AON worth $87,684,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Westside Investment Management Inc. lifted its stake in shares of AON by 100.0% in the third quarter. Westside Investment Management Inc. now owns 70 shares of the financial services provider's stock valued at $25,000 after buying an additional 35 shares in the last quarter. Wealth Watch Advisors INC bought a new position in shares of AON in the third quarter valued at $25,000. Eagle Bay Advisors LLC bought a new position in shares of AON in the fourth quarter valued at $30,000. Strive Asset Management LLC bought a new position in shares of AON in the third quarter valued at $35,000. Finally, Measured Wealth Private Client Group LLC bought a new position in shares of AON in the third quarter valued at $37,000. 86.14% of the stock is owned by institutional investors.

AON Stock Down 2.0%

Shares of NYSE AON opened at $308.27 on Thursday. The company has a quick ratio of 2.03, a current ratio of 1.95 and a debt-to-equity ratio of 1.36. The firm's fifty day moving average is $325.05 and its 200 day moving average is $336.59. The company has a market cap of $65.84 billion, a price-to-earnings ratio of 16.92, a PEG ratio of 1.67 and a beta of 0.72. Aon plc has a 52 week low of $304.59 and a 52 week high of $381.00.

AON (NYSE:AON - Get Free Report) last announced its earnings results on Friday, May 1st. The financial services provider reported $6.48 EPS for the quarter, beating analysts' consensus estimates of $6.37 by $0.11. AON had a net margin of 22.54% and a return on equity of 43.50%. The firm had revenue of $5.03 billion for the quarter, compared to analysts' expectations of $4.97 billion. During the same quarter in the previous year, the business posted $5.67 EPS. The company's quarterly revenue was up 6.4% on a year-over-year basis. On average, equities research analysts expect that Aon plc will post 19.02 earnings per share for the current year.

AON Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 1st will be paid a dividend of $0.82 per share. The ex-dividend date is Friday, May 1st. This represents a $3.28 annualized dividend and a yield of 1.1%. This is an increase from AON's previous quarterly dividend of $0.75. AON's dividend payout ratio (DPR) is currently 16.36%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on AON. Wells Fargo & Company lowered their target price on shares of AON from $443.00 to $402.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. UBS Group restated a "neutral" rating and set a $385.00 price objective on shares of AON in a report on Monday, February 2nd. Evercore restated an "outperform" rating and set a $436.00 price objective on shares of AON in a report on Wednesday, January 7th. TD Cowen restated a "buy" rating on shares of AON in a report on Monday, March 16th. Finally, Bank of America upgraded shares of AON from a "neutral" rating to an "outperform" rating and decreased their price objective for the stock from $398.00 to $397.00 in a report on Friday, February 27th. Fourteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $397.88.

Insider Activity

In other AON news, Director Lester B. Knight purchased 4,000 shares of AON stock in a transaction dated Tuesday, February 10th. The stock was purchased at an average price of $319.24 per share, with a total value of $1,276,960.00. Following the transaction, the director directly owned 143,000 shares of the company's stock, valued at $45,651,320. This trade represents a 2.88% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Darren Zeidel sold 5,040 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $325.79, for a total transaction of $1,641,981.60. Following the sale, the general counsel directly owned 20,254 shares of the company's stock, valued at $6,598,550.66. The trade was a 19.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.10% of the stock is currently owned by corporate insiders.

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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