USS Investment Management Ltd Reduces Holdings in Aon plc $AON

Key Points

• USS Investment Management Ltd cut its Aon stake by 26.3% in the first quarter, selling 179,263 shares and leaving it with 502,480 shares worth about $162.2 million.
• Despite that sale, institutional ownership remains high, with investors holding 86.14% of Aon’s stock and several other funds making smaller increases to their positions.
• Aon’s fundamentals and outlook remain solid: the company beat quarterly EPS estimates, raised its dividend to $0.82 per share, and analysts currently rate the stock a “Moderate Buy” with a consensus price target of $394.94.

USS Investment Management Ltd decreased its position in shares of Aon plc (NYSE:AON - Free Report) by 26.3% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 502,480 shares of the financial services provider's stock after selling 179,263 shares during the period. AON makes up about 0.7% of USS Investment Management Ltd's investment portfolio, making the stock its 24th largest position. USS Investment Management Ltd owned 0.23% of AON worth $162,221,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in AON. Sound View Wealth Advisors Group LLC grew its holdings in AON by 1.5% during the 4th quarter. Sound View Wealth Advisors Group LLC now owns 1,935 shares of the financial services provider's stock valued at $683,000 after purchasing an additional 29 shares during the last quarter. Kathmere Capital Management LLC lifted its stake in AON by 2.1% in the fourth quarter. Kathmere Capital Management LLC now owns 1,582 shares of the financial services provider's stock worth $558,000 after purchasing an additional 32 shares during the last quarter. City National Bank of Florida MSD boosted its position in shares of AON by 3.8% during the fourth quarter. City National Bank of Florida MSD now owns 867 shares of the financial services provider's stock valued at $306,000 after buying an additional 32 shares during the period. Capital Investment Advisors LLC boosted its position in shares of AON by 1.8% during the fourth quarter. Capital Investment Advisors LLC now owns 1,882 shares of the financial services provider's stock valued at $664,000 after buying an additional 33 shares during the period. Finally, Salomon & Ludwin LLC grew its stake in shares of AON by 39.3% during the fourth quarter. Salomon & Ludwin LLC now owns 117 shares of the financial services provider's stock valued at $41,000 after buying an additional 33 shares during the last quarter. Institutional investors own 86.14% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. JPMorgan Chase & Co. decreased their price target on AON from $406.00 to $396.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Morgan Stanley reduced their target price on AON from $380.00 to $370.00 and set an "overweight" rating on the stock in a research note on Thursday, May 21st. Keefe, Bruyette & Woods decreased their target price on AON from $416.00 to $401.00 and set an "outperform" rating for the company in a research report on Tuesday, April 7th. UBS Group lowered their target price on shares of AON from $385.00 to $360.00 and set a "neutral" rating for the company in a research note on Tuesday, June 16th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of AON in a report on Tuesday, April 21st. Thirteen analysts have rated the stock with a Buy rating and four have issued 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 $394.94.

AON Stock Up 1.4%

Shares of NYSE:AON opened at $332.03 on Wednesday. Aon plc has a 52-week low of $304.59 and a 52-week high of $381.00. The stock has a market cap of $70.91 billion, a P/E ratio of 18.22, a price-to-earnings-growth ratio of 1.72 and a beta of 0.71. The business's 50 day moving average is $322.36 and its 200 day moving average is $330.60. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 1.36.

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

AON Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a $0.82 dividend. The ex-dividend date was Friday, May 1st. This is an increase from AON's previous quarterly dividend of $0.74. This represents a $3.28 annualized dividend and a dividend yield of 1.0%. AON's dividend payout ratio is presently 18.00%.

About AON

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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