AON (NYSE:AON) Hits New 52-Week Low - What's Next?

Key Points

• AON shares fell to a new 52-week low of $304.55, well below their 50-day moving average of $353.17 and 200-day average of $334.17.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with 12 Buy ratings, seven Holds and an average price target of $399.12.
• AON slightly exceeded quarterly earnings expectations with EPS of $3.81, while revenue rose 2.2% year over year; the company also paid a quarterly dividend of $0.82 per share and a director recently purchased 20,000 shares.

Shares of Aon plc (NYSE:AON - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $304.55 and last traded at $304.8240, with a volume of 1650657 shares traded. The stock had previously closed at $315.79.

Analysts Set New Price Targets

Several analysts have recently commented on AON shares. Roth Capital set a $380.00 price objective on shares of AON in a report on Tuesday, September 1st. Cantor Fitzgerald dropped their price objective on shares of AON from $445.00 to $433.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 1st. Mizuho dropped their price target on shares of AON from $437.00 to $398.00 and set an "outperform" rating on the stock in a research report on Tuesday, September 1st. JPMorgan Chase & Co. raised their target price on AON from $396.00 to $412.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. Finally, Morgan Stanley increased their price target on AON from $380.00 to $410.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 19th. Twelve research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $399.12.

AON Price Performance

The stock's 50 day moving average is $353.17 and its two-hundred day moving average is $334.17. The company has a debt-to-equity ratio of 1.34, a quick ratio of 1.54 and a current ratio of 1.54. The stock has a market capitalization of $64.66 billion, a PE ratio of 16.80, a price-to-earnings-growth ratio of 1.63 and a beta of 0.66.

AON (NYSE:AON - Get Free Report) last released its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, beating the consensus estimate of $3.80 by $0.01. AON had a return on equity of 42.13% and a net margin of 22.27%.The business had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.28 billion. During the same quarter last year, the business posted $3.49 earnings per share. The business's quarterly revenue was up 2.2% compared to the same quarter last year. On average, equities analysts anticipate that Aon plc will post 18.99 EPS for the current fiscal year.

AON Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, August 3rd were paid a dividend of $0.82 per share. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $3.28 annualized dividend and a yield of 1.1%. AON's dividend payout ratio (DPR) is 18.08%.

Insider Buying and Selling

In other AON news, General Counsel Darren Zeidel sold 1,900 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total value of $717,744.00. Following the completion of the transaction, the general counsel owned 11,504 shares of the company's stock, valued at $4,345,751.04. This trade represents a 14.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Lester B. Knight purchased 20,000 shares of the company's stock in a transaction on Wednesday, September 2nd. The stock was acquired at an average price of $327.48 per share, with a total value of $6,549,600.00. Following the purchase, the director owned 163,000 shares of the company's stock, valued at approximately $53,379,240. This represents a 13.99% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 4,450 shares of company stock worth $1,659,242 over the last three months. Insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On AON

Institutional investors and hedge funds have recently made changes to their positions in the stock. Wealth Watch Advisors INC acquired a new position in AON during the 3rd quarter worth approximately $25,000. University of Texas Texas AM Investment Management Co. purchased a new stake in AON during the 4th quarter worth about $27,000. Kemnay Advisory Services Inc. acquired a new position in shares of AON during the 4th quarter worth about $29,000. Strive Asset Management LLC acquired a new stake in shares of AON during the 3rd quarter worth about $35,000. Finally, Measured Wealth Private Client Group LLC acquired a new position in AON in the third quarter valued at approximately $37,000. 86.14% of the stock is owned by institutional investors and hedge funds.

About AON

Aon plc is a global professional services firm that helps organizations manage risk, support workforce strategies and make informed decisions. Its principal activities include commercial risk brokerage, insurance and reinsurance consulting, retirement and investment advisory services, health and benefits consulting, and data- and analytics-based business solutions.

Aon serves businesses, governments, institutional investors and individuals across a broad range of industries and geographies.

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