Southpoint Capital Advisors LP Reduces Holdings in Aon plc $AON

Key Points

• Southpoint Capital Advisors reduced its Aon stake by 23.1% in the first quarter, selling 150,000 shares and retaining 500,000 shares valued at approximately $161.4 million. Institutional investors and hedge funds collectively own 86.14% of AON.
• Aon reported quarterly earnings of $6.48 per share, exceeding estimates of $6.37, while revenue rose 6.4% year over year to $5.03 billion. The company declared a quarterly dividend of $0.82, representing a 0.9% annualized yield.
• Analysts maintain a generally positive view, with 12 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $404.56 versus the stock’s reported $366.80 price.

Southpoint Capital Advisors LP lowered its stake in shares of Aon plc (NYSE:AON - Free Report) by 23.1% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 500,000 shares of the financial services provider's stock after selling 150,000 shares during the quarter. AON comprises approximately 3.3% of Southpoint Capital Advisors LP's investment portfolio, making the stock its 13th largest holding. Southpoint Capital Advisors LP owned about 0.23% of AON worth $161,390,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of AON. Dodge & Cox lifted its stake in shares of AON by 126.6% during the fourth quarter. Dodge & Cox now owns 7,852,456 shares of the financial services provider's stock worth $2,770,975,000 after buying an additional 4,387,773 shares during the period. Norges Bank purchased a new position in AON in the 4th quarter worth $1,155,981,000. Viking Global Investors LP acquired a new stake in AON during the 3rd quarter worth about $504,424,000. Balyasny Asset Management L.P. grew its stake in AON by 40,219.8% during 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 purchasing an additional 844,615 shares during the last quarter. Finally, Focus Partners Wealth increased its holdings in shares of AON by 396.0% in the fourth quarter. Focus Partners Wealth now owns 546,204 shares of the financial services provider's stock valued at $192,756,000 after purchasing an additional 436,093 shares during the period. 86.14% of the stock is currently owned by institutional investors and hedge funds.

AON Stock Performance

AON opened at $366.80 on Tuesday. The firm has a fifty day moving average price of $337.38 and a 200 day moving average price of $331.37. Aon plc has a 1 year low of $304.59 and a 1 year high of $378.70. The stock has a market cap of $78.34 billion, a P/E ratio of 20.13, a P/E/G ratio of 1.89 and a beta of 0.71. The company has a debt-to-equity ratio of 1.36, a current ratio of 1.95 and a quick ratio of 1.95.

AON (NYSE:AON - Get Free Report) last released its quarterly earnings results on Saturday, May 2nd. The financial services provider reported $6.48 EPS for the quarter, beating the consensus estimate of $6.37 by $0.11. AON had a net margin of 22.54% and a return on equity of 43.50%. The company had revenue of $5.03 billion for the quarter, compared to analyst estimates of $4.97 billion. During the same quarter last year, the business earned $5.67 earnings per share. The firm's revenue was up 6.4% on a year-over-year basis. Equities research analysts anticipate that Aon plc will post 19.09 earnings per share for the current year.

AON Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Monday, August 3rd will be paid a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Monday, August 3rd. AON's payout ratio is currently 18.00%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Keefe, Bruyette & Woods dropped their target price on AON from $404.00 to $400.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 8th. Cantor Fitzgerald lifted their price objective on shares of AON from $416.00 to $445.00 and gave the company an "overweight" rating in a research note on Thursday, July 9th. Citigroup increased their price objective on shares of AON from $412.00 to $420.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. UBS Group raised their target price on shares of AON from $360.00 to $383.00 and gave the stock a "neutral" rating in a report on Wednesday, July 8th. Finally, Piper Sandler downgraded shares of AON from an "overweight" rating to a "neutral" rating and boosted their target price for the company from $355.00 to $377.00 in a research report on Wednesday, July 15th. Twelve equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $404.56.

Insider Buying and Selling at AON

In related news, General Counsel Darren Zeidel sold 600 shares of the company's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $360.00, for a total value of $216,000.00. Following the completion of the transaction, the general counsel owned 15,354 shares of the company's stock, valued at approximately $5,527,440. This represents a 3.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.00% of the stock is currently owned by corporate insiders.

AON Profile

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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