Arthur J. Gallagher & Co. (NYSE:AJG) was upgraded by Zacks Investment Research from a "hold" rating to a "buy" rating in a note issued to investors on Thursday, Zacks.com reports. The firm currently has a $158.00 price objective on the financial services provider's stock. Zacks Investment Research's price target points to a potential upside of 5.52% from the company's previous close.
According to Zacks, "Shares of Arthur J. Gallagher have outperformed its industry in a year. The company is likely to continue benefiting from solid organic growth, which have been driving revenues. Sturdy performance across its Brokerage and Risk Management segments also bode well. The company expects organic revenues in Risk Management and Brokerage segment to be better than 2020 level. Its focus on tapping opportunities across the globe bodes well for growth. Its inorganic growth story seems impressive with strategic buyouts. Its solid performance is driving cash flow and helping it to deploy capital in shareholder-friendly moves. However, escalating expenses weigh on the company’s margin expansion. Also, high debt level induces higher interest expenses and low times interest earned concerns. Lower return on equity poses financial risk for the company."
A number of other research firms have also weighed in on AJG. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $140.22 target price (down previously from $160.00) on shares of Arthur J. Gallagher & Co. in a report on Tuesday, July 27th. Evercore ISI upgraded Arthur J. Gallagher & Co. to a "buy" rating and set a $160.00 target price on the stock in a research note on Friday, July 30th. Truist Securities upped their price objective on shares of Arthur J. Gallagher & Co. from $165.00 to $170.00 and gave the stock a "buy" rating in a research report on Wednesday. Wolfe Research began coverage on shares of Arthur J. Gallagher & Co. in a research note on Monday, August 16th. They issued a "peer perform" rating and a $145.00 price target for the company. Finally, Royal Bank of Canada lifted their price objective on shares of Arthur J. Gallagher & Co. from $142.00 to $150.00 and gave the stock a "sector perform" rating in a report on Friday, July 30th. One research analyst has rated the stock with a sell rating, six have given a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $150.83.
Shares of NYSE AJG traded down $0.46 during trading on Thursday, reaching $149.73. 23,907 shares of the stock traded hands, compared to its average volume of 1,025,860. The company has a 50-day moving average of $141.74 and a 200-day moving average of $138.64. Arthur J. Gallagher & Co. has a 52-week low of $101.36 and a 52-week high of $154.03. The stock has a market capitalization of $30.96 billion, a P/E ratio of 33.56, a price-to-earnings-growth ratio of 2.57 and a beta of 0.69. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.33 and a quick ratio of 1.33.
Arthur J. Gallagher & Co. (NYSE:AJG) last posted its earnings results on Thursday, July 29th. The financial services provider reported $1.17 earnings per share for the quarter, topping the consensus estimate of $1.07 by $0.10. The firm had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.71 billion. Arthur J. Gallagher & Co. had a net margin of 11.70% and a return on equity of 15.11%. Analysts expect that Arthur J. Gallagher & Co. will post 5.31 earnings per share for the current fiscal year.
Arthur J. Gallagher & Co. declared that its Board of Directors has initiated a share repurchase plan on Thursday, July 29th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 5.2% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.
Several hedge funds have recently added to or reduced their stakes in AJG. Findlay Park Partners LLP purchased a new stake in Arthur J. Gallagher & Co. during the 2nd quarter valued at about $306,401,000. Vanguard Group Inc. lifted its holdings in Arthur J. Gallagher & Co. by 5.9% in the second quarter. Vanguard Group Inc. now owns 23,763,727 shares of the financial services provider's stock valued at $3,328,822,000 after acquiring an additional 1,332,944 shares during the period. FMR LLC grew its stake in shares of Arthur J. Gallagher & Co. by 15.2% during the 2nd quarter. FMR LLC now owns 9,361,821 shares of the financial services provider's stock valued at $1,311,404,000 after purchasing an additional 1,237,328 shares during the period. Capital International Investors raised its position in Arthur J. Gallagher & Co. by 18.4% in the second quarter. Capital International Investors now owns 5,096,687 shares of the financial services provider's stock worth $714,005,000 after acquiring an additional 791,098 shares during the period. Finally, JPMorgan Chase & Co. grew its position in shares of Arthur J. Gallagher & Co. by 17.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 5,127,614 shares of the financial services provider's stock valued at $718,277,000 after acquiring an additional 759,643 shares during the period. Hedge funds and other institutional investors own 83.12% of the company's stock.
Arthur J. Gallagher & Co. Company Profile
Arthur J. Gallagher & Co engages in the provision of insurance brokerage, consulting, and third party claims settlement and administration services to both domestic and international entities. It operates through the following business segments: Brokerage, Risk Management and Corporate. The Brokerage segment comprises of retail and wholesale insurance brokerage operations.
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