Morgan Stanley Lowers Arthur J. Gallagher & Co. (NYSE:AJG) Price Target to $240.00

Key Points

• Morgan Stanley cut its price target on Arthur J. Gallagher & Co. from $265 to $240, while keeping an overweight rating on the stock. The new target still implies about 18.53% upside from the previous close.
• Other analysts have also adjusted their views, with several lowering price targets; the current consensus rating is Moderate Buy and the average price target is $266.53. AJG has 11 Buy ratings and 8 Hold ratings.
• The company recently reported better-than-expected earnings of $4.47 per share, though revenue slightly missed estimates at $4.71 billion. Revenue grew 29% year over year, and the stock opened at $202.48 on Thursday.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) had its target price lowered by analysts at Morgan Stanley from $265.00 to $240.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has an "overweight" rating on the financial services provider's stock. Morgan Stanley's price objective points to a potential upside of 18.53% from the stock's previous close.

A number of other analysts have also commented on AJG. Citigroup raised Arthur J. Gallagher & Co. from a "neutral" rating to a "buy" rating and decreased their price objective for the stock from $280.00 to $250.00 in a report on Wednesday, May 6th. Cantor Fitzgerald reaffirmed a "neutral" rating on shares of Arthur J. Gallagher & Co. in a research report on Friday, January 30th. Piper Sandler lowered their price target on Arthur J. Gallagher & Co. from $226.00 to $211.00 and set a "neutral" rating for the company in a research report on Friday, May 1st. Truist Financial dropped their price objective on Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a "hold" rating on the stock in a research note on Friday, May 1st. Finally, UBS Group reduced their target price on shares of Arthur J. Gallagher & Co. from $285.00 to $283.00 and set a "neutral" rating for the company in a research note on Monday, February 2nd. Eleven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $266.53.

Arthur J. Gallagher & Co. Price Performance

Shares of NYSE:AJG opened at $202.48 on Thursday. Arthur J. Gallagher & Co. has a twelve month low of $190.75 and a twelve month high of $351.23. The stock's 50 day moving average is $211.82 and its 200-day moving average is $232.98. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.51. The firm has a market capitalization of $52.02 billion, a price-to-earnings ratio of 32.76, a PEG ratio of 1.03 and a beta of 0.54.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The financial services provider reported $4.47 earnings per share 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 the consensus estimate 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 in the prior year, the company posted $3.67 earnings per share. Sell-side analysts forecast that Arthur J. Gallagher & Co. will post 13.22 EPS for the current fiscal year.

Insider Activity

In other Arthur J. Gallagher & Co. news, VP Christopher E. Mead sold 4,000 shares of the business's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $227.12, for a total value of $908,480.00. Following the transaction, the vice president directly owned 19,306 shares in the company, valued at $4,384,778.72. The trade was a 17.16% 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 Scott R. Hudson sold 3,800 shares of the stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $227.57, for a total transaction of $864,766.00. Following the transaction, the vice president directly owned 85,920 shares of the company's stock, valued at $19,552,814.40. This represents a 4.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in AJG. Kemnay Advisory Services Inc. purchased a new stake in Arthur J. Gallagher & Co. during the fourth quarter valued at about $26,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at approximately $29,000. Physician Wealth Advisors Inc. lifted its stake in shares of Arthur J. Gallagher & Co. by 870.0% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 97 shares of the financial services provider's stock valued at $30,000 after buying an additional 87 shares in the last quarter. MV Capital Management Inc. bought a new position in Arthur J. Gallagher & Co. in the 4th quarter worth approximately $34,000. Finally, Rakuten Securities Inc. boosted its holdings in Arthur J. Gallagher & Co. by 650.0% in the 2nd 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 period. Hedge funds and other institutional investors own 85.53% 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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