Quantinno Capital Management LP Buys 39,893 Shares of Arthur J. Gallagher & Co. $AJG

Key Points

• Quantinno Capital Management increased its Arthur J. Gallagher stake by 34.1% in the first quarter, buying 39,893 additional shares for a total of 156,950 shares valued at approximately $34.0 million. Institutional investors collectively own 85.53% of AJG.
• Arthur J. Gallagher reported adjusted quarterly EPS of $2.84, narrowly beating estimates, while revenue rose 24.3% year over year to $3.95 billion but came in below forecasts. The stock was recently down 4.6%, and analysts maintain a “Moderate Buy” consensus with a $280.35 price target.
• The company declared a quarterly dividend of $0.70 per share, equivalent to an annualized $2.80 payout and a 1.1% yield, payable September 18 to shareholders of record on September 8.

Quantinno Capital Management LP grew its stake in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 34.1% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 156,950 shares of the financial services provider's stock after buying an additional 39,893 shares during the period. Quantinno Capital Management LP owned approximately 0.06% of Arthur J. Gallagher & Co. worth $33,992,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently made changes to their positions in AJG. Dearborn Partners LLC lifted its position in shares of Arthur J. Gallagher & Co. by 6.3% during the 4th quarter. Dearborn Partners LLC now owns 133,936 shares of the financial services provider's stock valued at $34,661,000 after acquiring an additional 7,946 shares during the last quarter. Seizert Capital Partners LLC acquired a new position in shares of Arthur J. Gallagher & Co. in the 4th quarter worth $3,571,000. Pictet Asset Management Holding SA raised its position in shares of Arthur J. Gallagher & Co. by 40.9% during the fourth quarter. Pictet Asset Management Holding SA now owns 154,404 shares of the financial services provider's stock worth $39,965,000 after purchasing an additional 44,824 shares during the period. SBI Okasan Asset Management Co.Ltd. purchased a new stake in shares of Arthur J. Gallagher & Co. during the fourth quarter valued at $1,371,000. Finally, Annex Advisory Services LLC lifted its holdings in shares of Arthur J. Gallagher & Co. by 7.9% during the fourth quarter. Annex Advisory Services LLC now owns 102,631 shares of the financial services provider's stock valued at $26,560,000 after purchasing an additional 7,478 shares during the last quarter. Hedge funds and other institutional investors own 85.53% of the company's stock.

Insiders Place Their Bets

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

Arthur J. Gallagher & Co. Stock Down 4.6%

Shares of Arthur J. Gallagher & Co. stock opened at $256.46 on Friday. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $313.55. The company has a market cap of $65.88 billion, a P/E ratio of 41.50, a P/E/G ratio of 1.39 and a beta of 0.50. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.51. The stock has a 50-day moving average price of $230.78 and a 200 day moving average price of $224.91.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share for the quarter, beating the consensus estimate of $2.81 by $0.03. The company had revenue of $3.95 billion for the quarter, compared to analysts' expectations of $4.01 billion. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The business's revenue for the quarter was up 24.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.33 EPS. As a group, analysts expect that Arthur J. Gallagher & Co. will post 13.22 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Tuesday, September 8th will be given a dividend of $0.70 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $2.80 dividend on an annualized basis and a yield of 1.1%. Arthur J. Gallagher & Co.'s payout ratio is presently 45.31%.

Analyst Ratings Changes

A number of equities analysts recently weighed in on AJG shares. Cantor Fitzgerald lifted their price target on Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Keefe, Bruyette & Woods raised their target price on shares of Arthur J. Gallagher & Co. from $242.00 to $261.00 and gave the stock a "market perform" rating in a report on Wednesday, July 8th. Truist Financial dropped their target price on shares of Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating on the stock in a research report on Friday, May 1st. Piper Sandler upgraded shares of Arthur J. Gallagher & Co. from a "neutral" rating to an "overweight" rating and upped their price target for the company from $225.00 to $276.00 in a research report on Wednesday, July 15th. Finally, Wells Fargo & Company raised their price objective on shares of Arthur J. Gallagher & Co. from $271.00 to $299.00 and gave the stock an "overweight" rating in a research note on Thursday, July 9th. Thirteen analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $280.35.

More Arthur J. Gallagher & Co. News

Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

• Positive Sentiment: Adjusted earnings beat expectations: Second-quarter adjusted earnings were $2.84 per share, $0.03 above the consensus estimate and up from $2.33 a year earlier. Arthur J. Gallagher Q2 Earnings Meet Estimates
• Positive Sentiment: Strong top-line growth and capital returns: Revenue before reimbursements rose 24.3% year over year to approximately $3.96 billion. Brokerage and Risk Management revenue also increased 24%, including 6% organic growth, while Gallagher repurchased about 900,000 shares for roughly $170 million. Arthur J. Gallagher Q2 Revenue Rises
• Positive Sentiment: Dividend maintained: Gallagher declared a quarterly dividend of $0.70 per share, payable September 18 to shareholders of record September 8, supporting the income component of the investment case. Arthur J. Gallagher Announces Third Quarter Dividend
• Neutral Sentiment: Board transition: The company announced the passing of director David Johnson and changes to board leadership. The development is unlikely to materially affect near-term earnings but adds a governance transition to monitor. Arthur J. Gallagher Announces Passing of Director David Johnson
• Negative Sentiment: Revenue and reported profit disappointed: Quarterly revenue of $3.95 billion was below the roughly $4.01 billion analyst forecast. Reported net income declined to $324 million from $368 million, with diluted GAAP EPS falling to $1.25 from $1.40, creating a mixed headline despite the adjusted EPS beat.
• Negative Sentiment: Sector growth concerns remain: Investors are questioning whether Gallagher’s approximately 6% organic growth can hold as insurance pricing conditions normalize, particularly after a peer reported weak underlying growth. Arthur J. Gallagher Slides Ahead of Earnings

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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