Sandhill Capital Partners LLC Buys New Position in Arthur J. Gallagher & Co. $AJG

Key Points

• Sandhill Capital Partners established a new position in Arthur J. Gallagher (NYSE:AJG), buying 108,253 shares worth about $33.53 million, which is 2.3% of Sandhill’s portfolio and its 19th-largest holding.
• AJG reported quarterly EPS of $2.38 (beating estimates) and revenue of $3.57 billion, up 33.9% year‑over‑year, but analysts’ consensus remains a Hold with an average price target of $281.76.
• The company raised its quarterly dividend to $0.70 (annualized $2.80, ~1.2% yield), while insiders sold roughly 24,850 shares (~$6.36 million) in the past 90 days and institutional investors own about 85.53% of the stock.

Sandhill Capital Partners LLC purchased a new position in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The firm purchased 108,253 shares of the financial services provider's stock, valued at approximately $33,530,000. Arthur J. Gallagher & Co. comprises 2.3% of Sandhill Capital Partners LLC's investment portfolio, making the stock its 19th biggest holding.

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

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on AJG shares. Jefferies Financial Group dropped their price objective on Arthur J. Gallagher & Co. from $283.00 to $280.00 and set a "hold" rating on the stock in a research note on Monday, February 2nd. Cantor Fitzgerald reiterated a "neutral" rating on shares of Arthur J. Gallagher & Co. in a report on Friday, January 30th. Evercore dropped their price target on Arthur J. Gallagher & Co. from $353.00 to $334.00 and set an "outperform" rating on the stock in a research note on Wednesday, December 17th. Piper Sandler reduced their price objective on shares of Arthur J. Gallagher & Co. from $249.00 to $226.00 and set a "neutral" rating for the company in a research report on Monday, February 23rd. Finally, Citigroup lifted their price objective on shares of Arthur J. Gallagher & Co. from $277.00 to $280.00 and gave the company a "neutral" rating in a research note on Monday, February 2nd. Seven equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $281.76.

Arthur J. Gallagher & Co. Stock Performance

Shares of Arthur J. Gallagher & Co. stock opened at $228.40 on Monday. Arthur J. Gallagher & Co. has a one year low of $195.00 and a one year high of $351.23. The firm has a market capitalization of $58.72 billion, a price-to-earnings ratio of 37.14, a PEG ratio of 1.11 and a beta of 0.67. The business has a 50-day simple moving average of $239.88 and a 200 day simple moving average of $263.15. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.06 and a quick ratio of 1.06.

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

Arthur J. Gallagher & Co. Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be issued a $0.70 dividend. The ex-dividend date is Friday, March 6th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.2%. This is an increase from Arthur J. Gallagher & Co.'s previous quarterly dividend of $0.65. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is 45.53%.

Insider Activity at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, VP Christopher E. Mead sold 4,000 shares of the firm's stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $258.11, for a total value of $1,032,440.00. Following the transaction, the vice president directly owned 17,327 shares of the company's stock, valued at approximately $4,472,271.97. This trade represents a 18.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Walter D. Bay sold 15,850 shares of Arthur J. Gallagher & Co. stock in a transaction dated 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 transaction, 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 ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 24,850 shares of company stock valued at $6,364,440. 1.30% of the stock is owned by company insiders.

Arthur J. Gallagher & Co. Company 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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