The Manufacturers Life Insurance Company Lowers Position in Arthur J. Gallagher & Co. $AJG

Key Points

• The Manufacturers Life Insurance Company cut its AJG position by 24.1% in the first quarter, selling 102,720 shares and retaining 322,634 shares worth approximately $69.9 million. Institutional investors collectively own 85.53% of the company.
• Arthur J. Gallagher reported quarterly EPS of $4.47, slightly exceeding estimates, while revenue rose 29% year over year to $4.71 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $280.35.
• The company declared a quarterly dividend of $0.70 per share, equivalent to an annualized $2.80 dividend and a 1.0% yield. An insider also sold 3,000 shares, while insiders retain a 1.40% ownership stake.

The Manufacturers Life Insurance Company decreased its holdings in shares of Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 24.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 322,634 shares of the financial services provider's stock after selling 102,720 shares during the quarter. The Manufacturers Life Insurance Company owned 0.13% of Arthur J. Gallagher & Co. worth $69,876,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Kemnay Advisory Services Inc. bought a new position in shares of Arthur J. Gallagher & Co. in the 4th quarter worth $26,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of Arthur J. Gallagher & Co. during the 1st quarter worth $29,000. MV Capital Management Inc. purchased a new position in Arthur J. Gallagher & Co. in the fourth quarter worth $34,000. Rakuten Securities Inc. increased its stake in Arthur J. Gallagher & Co. by 650.0% in the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 91 shares during the last quarter. Finally, Avalon Trust Co purchased a new stake in Arthur J. Gallagher & Co. during the first quarter valued at about $40,000. 85.53% of the stock is owned by hedge funds and other institutional investors.

Arthur J. Gallagher & Co. Price Performance

Shares of Arthur J. Gallagher & Co. stock opened at $268.92 on Thursday. 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 one year low of $190.75 and a one year high of $313.55. The business's 50 day simple moving average is $229.80 and its two-hundred day simple moving average is $224.96. The stock has a market capitalization of $69.09 billion, a P/E ratio of 43.51, a price-to-earnings-growth ratio of 1.37 and a beta of 0.50.

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 (EPS) for the quarter, topping the consensus estimate of $4.43 by $0.04. The firm had revenue of $4.71 billion for the quarter, compared to analysts' expectations of $4.73 billion. Arthur J. Gallagher & Co. had a net margin of 10.76% and a return on equity of 12.83%. The business's revenue was up 29.0% on a year-over-year basis. During the same quarter last year, the business earned $3.67 earnings per share. Analysts forecast that Arthur J. Gallagher & Co. will post 13.22 EPS for the current year.

Arthur J. Gallagher & Co. Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th will be given a $0.70 dividend. The ex-dividend date is Tuesday, September 8th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.0%. Arthur J. Gallagher & Co.'s payout ratio is presently 45.31%.

Wall Street Analyst Weigh In

AJG has been the subject of a number of research reports. Royal Bank Of Canada upped their price objective on Arthur J. Gallagher & Co. from $260.00 to $300.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Citigroup raised Arthur J. Gallagher & Co. from a "neutral" rating to a "buy" rating and cut their target price for the stock from $280.00 to $250.00 in a research note on Wednesday, May 6th. Morgan Stanley lifted their price target on shares of Arthur J. Gallagher & Co. from $240.00 to $255.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. Piper Sandler upgraded shares of Arthur J. Gallagher & Co. from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $225.00 to $276.00 in a report on Wednesday, July 15th. Finally, UBS Group increased their target price on shares of Arthur J. Gallagher & Co. from $250.00 to $291.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $280.35.

Insider Activity at Arthur J. Gallagher & Co.

In other news, CAO Richard C. Cary sold 3,000 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $206.00, for a total transaction of $618,000.00. Following the completion of the sale, the chief accounting officer directly owned 47,819 shares in the company, valued at approximately $9,850,714. This represents a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 1.40% of the company's stock.

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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