UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC Grows Position in Arthur J. Gallagher & Co. $AJG

Key Points

• UBS Asset Management increased its Arthur J. Gallagher stake by 0.3% in the second quarter, holding 1.45 million shares valued at approximately $333.7 million. Institutional investors collectively own 85.53% of AJG.
• Arthur J. Gallagher reported quarterly adjusted EPS of $2.84, beating estimates of $2.81, while revenue rose 24.3% year over year to $3.95 billion but fell short of expectations.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $290.28. The company also declared a quarterly dividend of $0.70 per share, implying a 1.1% yield.

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) by 0.3% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,453,774 shares of the financial services provider's stock after acquiring an additional 3,905 shares during the quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC owned approximately 0.57% of Arthur J. Gallagher & Co. worth $333,743,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Norges Bank purchased a new position in Arthur J. Gallagher & Co. in the fourth quarter valued at approximately $1,925,062,000. T. Rowe Price Investment Management Inc. increased its position in Arthur J. Gallagher & Co. by 123.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 5,887,538 shares of the financial services provider's stock worth $1,523,636,000 after buying an additional 3,253,498 shares during the last quarter. Gtcr LLC purchased a new position in shares of Arthur J. Gallagher & Co. during the 1st quarter valued at $514,112,000. Bank of New York Mellon Corp purchased a new position in shares of Arthur J. Gallagher & Co. during the 2nd quarter valued at $289,484,000. Finally, Northwestern Mutual Wealth Management Co. grew its stake in shares of Arthur J. Gallagher & Co. by 9,244.9% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,053,636 shares of the financial services provider's stock worth $272,670,000 after acquiring an additional 1,042,361 shares during the period. 85.53% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, General Counsel Walter D. Bay sold 12,000 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $270.08, for a total value of $3,240,960.00. Following the transaction, the general counsel owned 71,292 shares of the company's stock, valued at $19,254,543.36. This represents a 14.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Christopher E. Mead sold 3,500 shares of the company's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $257.02, for a total value of $899,570.00. Following the completion of the transaction, the vice president owned 22,223 shares of the company's stock, valued at $5,711,755.46. The trade was a 13.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.40% of the company's stock.

Arthur J. Gallagher & Co. Trading Down 1.9%

Shares of AJG stock opened at $262.39 on Tuesday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.05 and a current ratio of 1.05. Arthur J. Gallagher & Co. has a 52-week low of $190.75 and a 52-week high of $313.55. The company has a market capitalization of $67.25 billion, a PE ratio of 43.51, a price-to-earnings-growth ratio of 1.62 and a beta of 0.50. The business's fifty day moving average is $250.70 and its 200 day moving average is $226.19.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its earnings results on Thursday, July 30th. The financial services provider reported $2.84 EPS for the quarter, topping the consensus estimate of $2.81 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%.The business had revenue of $3.95 billion during the quarter, compared to analysts' expectations of $4.01 billion. During the same period in the previous year, the business earned $2.33 earnings per share. The firm's revenue was up 24.3% on a year-over-year basis. On average, equities research analysts anticipate that Arthur J. Gallagher & Co. will post 13.28 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 $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Tuesday, September 8th. Arthur J. Gallagher & Co.'s dividend payout ratio is 46.43%.

Wall Street Analysts Forecast Growth

Several research firms have commented on AJG. Citigroup upped their price objective on shares of Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a "buy" rating in a report on Tuesday, August 4th. UBS Group boosted their price target on shares of Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the company a "buy" rating in a research report on Monday, August 3rd. Truist Financial upped their price target on shares of Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the company a "hold" rating in a research note on Friday, July 31st. Wells Fargo & Company cut their price objective on shares of Arthur J. Gallagher & Co. from $299.00 to $296.00 and set an "overweight" rating for the company in a report on Monday, August 3rd. Finally, Argus boosted their target price on shares of Arthur J. Gallagher & Co. from $267.00 to $300.00 and gave the company a "buy" rating in a report on Monday, August 17th. Fourteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, Arthur J. Gallagher & Co. presently has an average rating of "Moderate Buy" and an average target price of $290.28.

Arthur J. Gallagher & Co. 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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